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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: MrBuzz who wrote (24805)	12/29/1998 10:02:00 AM
From: KSHITIJ DOSHI	Respond to of 42771

For an interesting upbeat prediction for Novell, see- cbs.marketwatch.com Quoting below from the article: Options outlook Price Headley of Schaefer's Investment Research agrees with Murphy on Apple. But his firm will play it in stages. SIR started recommending Apple when it was 37 15/16th and Headley says "we're targeting a move to 42." They also recommend options and note that the Apple January 35 Calls were trading at 5 1/8th when they said the stock looked bullish. If Apple does go to 42 by the time that Call approaches expiration in January, the option contract should be worth about 7. But Headley notes: "if it happens in the next week or so, it should be trading more like about 8 1/2 because of the time value of the option contract." Headley also likes Novell (NOVL). "You've seen the stock finally have a good turn around on the longer term chart, the 10 month average crossing above the 20 month average. That hasn't happened since the early 90s when the stock went from about 5 up to 30 in about a year and a half." He notes the company has posted two good quarterly earnings surprises and they'll next report in mid to late February. So he says you could buy the May 20 Call options contract now for about 1 9/16ths. "30 is our target later into '99 on Novell, but our first target is at 22 1/2, which, if we had a fairly quick 5 point move, you'd be looking at the May 20 Call options worth in the neighborhood of 3 to 3 1/2."