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Gold/Mining/Energy : PKS-PeakSoft Multinet Corp. (was PeakSoft Corp.) -- Ignore unavailable to you. Want to Upgrade?

To: Brian Warner who wrote (1443)	5/16/1999 10:31:00 AM
From: Brian Warner	Read Replies (1) \| Respond to of 1470

Peaksoft/Novell deal "turned some heads on Wall Street" Magic 25 May 13, 1999 Novell Remains A Bargain at Current Levels Novell has been active on the deal front over the past several months, signing agreements with Lucent (NYSE:LU - news) , Cisco Systems (NASDAQ:CSCO - news) , PeopleSoft (NASDAQ:PSFT - news) , and Northern Telecomm (NYSE:NT - news) . While the stock has certainly made a nice run over the past year from a 52-week low of $9.50, it has been stuck in a trading range over the last three months, and is ripe for another move up. Another deal with PeakSoft Multinet (NASDAQ:PEAMF - news) turned some heads on Wall Street. This relationship will combine the two companies' software products and services. Novell's worldwide business customers will now have access to software solutions created by PeakSoft. In turn, PeakSoft will have access to marketing channels that it did not have before. As is often the case, it is hard to quantify the upside from the deal, but it is another excellent indicator that the company's technology and market presence are a viable alternative to solutions being offered by rival Microsoft (NASDAQ:MSFT - news) . Moreover, the agreements with a variety of high profile companies enhances Novell's credibility as a dominant player in the active directory market. As a further boost to Novell's reputation, consider also that the company's NetWare 5, BorderManager 3.0, GroupWise 5.5, NDS, and NDS have received new product awards from industry publications including Network Magazine and Network Computing. It has been widely reported that Microsoft has been slow in getting its Windows 2000 product to market. After several glitches, Microsoft is targeting the fourth quarter for release. This has helped companies like Novell and Sun Microsystems (NASDAQ:SUNW - news) with much needed time to get a foothold on the market. Windows 2000 is expected to contain an Active Directory solution. But, experts are saying that NetWare will still rule the roost. Certainly CEO, Eric Schmidt, the man that made Sun Microsystems such a dominant player in the industry is banking on this. Mr. Schmidt recently voiced his commitment to Novell in a recent interview when he was mentioned as a possible replacement for Hewlett Packard (NYSE:HWP - news) CEO, Lew Platt who is retiring next year. Mr. Schmidt flatly stated "I'm not done here". This should bode well for Novell shareholders. On Novell's conference calls, Mr. Schmidt has consistently alluded to further products that are "in the works." The new products are secretly being referred to as the "10 ZENS". This infers that the company is coming out with additions to the existing ZENworks line. ZENworks is a product that gives system managers better control over data and usage flowing over their networks. More detail regarding the company's development efforts are expected to be released over the next several months as all of these products are expected to ship by year-end. Preferred Capital Markets analyst, Joel Achramowicz points to the company's caching technology as another potential catalyst, commenting that revenues could be as high as $70 million from these products over the next year. Caching is a process used to speed up a web servers capacity that speeds the flow of information and reduces bandwidth expenses. Mr. Achramowicz has a target of $40 on the stock. "If the company is able to meet its $1.3 billion revenue target, as we expect them to, all should be OK for the year," he adds. Consensus estimates have the company earning $0.49 per share for the year ending October 1999 and $0.70 per share in FY 2000, indicating an anticipated earnings growth rate of 43%. Wall Street is expecting the company to earn $0.10 per share for the second quarter ending April 30, 1999. After speaking with the company and with other analysts, it looks like Novell will meet the estimate, with a chance for $0.01 per share to the upside. Earnings are scheduled for release on May 25 after the close. Stay tuned. Analyst: Glenn S. Curtis Updated on 5/13/99 with NOVL trading at $24.31 Recommended 11/16/98 at $14.38 fnews.yahoo.com