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

To: DJBEINO who wrote (24984)	1/14/1999 4:27:00 PM
From: Spartex	Read Replies (3) \| Respond to of 42771

Novell's Turnaround Strategy Should Soon Bear Fruit (1/13) Individual Investor Online Analysis As we noted in our original recommendation, Novell's CEO, Eric Schmidt, has done an excellent job of turning the company around and redefining its focus. The company has been extremely innovative in its development of NetWare, as well as other accessory type product such as Z.E.N.works, a network management system at the desktop level. Sales of this product alone have roughly doubled to around $10 million between the 3rd. and the 4th quarter of 1998. While that growth is off a low base considering that the company does $1 billion plus in revenue per year, it is a good sign that product development investments are beginning to payoff. It is this type of product development that will enable the company to successfully compete with Microsoft (NASDAQ:MSFT). We recently spoke with Preferred Capital Markets analyst Joel Achramowicz, who rates the stock a "strong buy". He concurs with our assessment, noting that "the growth story is just starting to make itself evident." He cites strong marketing and management teams as the impetus to "really grow the company". Achramowicz also raised the notion that the shares are undervalued when viewed as an Internet company. Novell's operating systems are structured to support Internet/Intranet communications, yet investors continue to value the company as if it maintained a more commodity type networking technology. But the big driver for growth in 1999 will be the upcoming NetWare line. Regarding Schmidt's efforts, we can now see the "light at the end of the tunnel", says company spokesperson Estelle Stevens. We agree, as we expect the company to launch a host of hot new products over the next several years. Based upon discussions with the company, and upon what we are hearing among our peers, we would expect that Novell will probably come in ahead of the consensus earnings estimate of $0.08 per share for the first quarter ending January 1999. That should be the beginning of a string of strong quarters to come. Analyst: Glenn S. Curtis Updated on 1/9/99 with NOVL trading at $19.44 Recommended on 11/16/98 with NOVL trading at $14.38