Novell's Buybacks Not Enough, Says Analyst
- Dr. Roy Schestowitz
- 2008-05-15 10:37:16 UTC
- Modified: 2008-05-15 10:37:16 UTC
Further privatisation required
Yesterday we wrote about
Novell's new buyback program. There are some more reactions to it now. Sarcastically, for example,
says the following guy: "Novell finds someone willing to buy $100M worth of its stock."
In January, Jefferies analyst Katherine Egbert predicted the buyback when she raised her rating on Novell stock from hold to buy and jacked her price target 50 cents to $7.50
He also refers to
this post, which comes from one of the most pro-Microsoft publications out there (probably second only to Motley Fool/MSN).
Katherine Egbert, an analyst at Jefferies & Co., notes that the buyback is “unlikely to move the EPS needle, even if executed quickly and entirely.” She points out that the company has about $1.8 billion in cash on its balance sheet, or about 78% of Novell’s current market valuation of about $2.3 billion. (Net cash is around $1 billion.)
Then again, Katherine Egbert's guesswork
typically has it wrong.
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Comments
b0rsuk
2008-05-15 12:11:12
"Operating system" and "linux" also go down in trends.google.com stats. So it's probably something more general. I believe this happens because computers in general go mainstream, and are increasingly used by non-technical users. Such users often don't care what OS they use. They just use whatever happens to be on the machine at the moment of purchase.
b0rsuk
David Flax
2008-05-15 22:50:22