To: Lane Hall-Witt who wrote (58382 ) 2/25/1999 10:15:00 AM From: Michaelste Respond to of 119973
NOVL - **News**biz.yahoo.com + Earnings today - whisper is .01 over the estimate. read on - (Credit to Briefing.com) NOVELL INC. (NOVL) 19. Here's a gutsy call you don't see everyday. Before the open, Morgan Stanley Dean Witter upgraded shares of networking software company Novell (NOVL) from "neutral" to "outperform." What makes this unusual is that NOVL is due to report earnings later today. Morgan Stanley is either betting that NOVL's numbers will look pretty good, or they have a good read on something. Brokerage firms can be shy about making a call just ahead of a big news event, because it could make them look bad if they are wrong. And as we all know, the worst thing for an analyst is to stick his neck out and then be wrong. NOVL stock is already indicated to open at 20 3/8 or higher. That would put it near its 52-week high of 20 3/4 which it recently hit. The stock had been stumbling along near 10 until it once again became a hot stock in October, and it has since doubled in price. NOVL, of course, is still basically a turnaround situation. For the fiscal year just ended in October, revenue was only half what it was three years ago. But profits are on the rebound, and the consensus forecast is for NOVL to earn $0.08 a share when they report today, up 100% from the $0.04 profit a year ago. In the quarter ended in October, NOVL had a year-over-year revenue increase of 10.5%, so they seemingly have gotten back into a growth mode. Today numbers for the first fiscal quarter (Jan) will obviously have a big impact on whether NOVL can maintain that all important perception of a renewed optimistic future. Morgan Stanley is expecting that to be the case, and willing to say so in a somewhat dramatic fashion