Last week rumors swirled that Novell was planning to put some or all of its assets on the auction block. The rumors derived from J.P. Morgan analyst John DiFucci’s misinterpretation of Novell CFO Dana Russell’s comments, suggesting that Novell “entertained the possibility of breaking out some parts of or selling the entire company, in order to maximize shareholder value given the current depressed valuation levels.”
Novell has since denied the implication that it’s for sale. But it shouldn’t be so hasty.
I wouldn’t be so hasty to suggest selling parts of it off so quickly. Novell may not be growing as fast as Red Hat is, but a bit of Marketing and PR may help.
Here’s a prime example why the capitalist system is a dead end: “in order to maximize shareholder value given the current depressed valuation levels.”
No one cares whether the business can look into the future and develop something given some time, everyone is only interested in maximising quick buck and dump.
“Oh noz, teh share dropped. FIERZ ALL PPLZ KVIK!!11”
On Mon, 22 Jun 2009 17:36:02 +0000, dragonbite wrote:
> Matt Asay
I haven’t found that he has much to say that’s positive. I understand
he’s ex-Novell, might have something to do with his ‘negative reporting’
if that’s the case.
I figure this to be classic corporatespeak for yes we are putting all or part of the company on the block.
Even though this could be said to comparing an apple to a Geeko. GM said they weren’t going bankrupt, they did, GE said they weren’t going to cut their dividend,they did, & National City ( a $151B USD banking corp here in the US) said they had no plans to sell the bank, they did to PNC Financial another 150B USD Bank here in the US.
This to me, means NOVL in whole or in part is on the block.
So, we have another thread on this subject anyone care to speculate what part or parts, to be sold? Company that’ll buy said parts? For NOVL acquiring corp IBM,HP, some other?
On Mon, 2009-06-22 at 17:36 +0000, dragonbite wrote:
…
> I wouldn’t be so hasty to suggest selling parts of it off so quickly.
> Novell may not be growing as fast as Red Hat is, but a bit of Marketing
> and PR may help.
You think Red Hat is growing? You are sadly mistaken.
Do not confuse stock interest for growth.
Remember, Red Hat just figured out how to make more than a half billion
in revenue. Novell makes almost a billion annually. And, like Red Hat,
also has a lot of cash on hand. But if you consider the fact that Red
Hat is valued at 3.7B and Novell has a cap of 1.5B… even though Red
Hat does better on the profit line, I think Novell has a LOT more
potential. IMHO, only Novel SUSE Enterprise products REALLY handle the
enterprise, Red Hat is just a web server platform. There’s more to
life than web servers.
What about Red Hat’s quarterly earnings increasing at a faster rate then the rest of the industry, or that they are hiring 600 employees over the next year? This, in a difficult economy.
Also they have a great emphasis in Virtualization of servers which more and more companies are moving towards. Heck, our little company here is utilizing VMWare quite a bit… just wish they would use something other than Windows
Novell, on the other hand, “bought” into open source / Linux and have they made their money back and more yet (outside of the Microsoft deal)?
Don’t get me wrong, I am not an anti-Novell person. I hope both companies do grow, since both of them are approaching it from different angles.
On Tue, 23 Jun 2009 05:46:01 +0000, Sagemta wrote:
> I figure this to be classic corporatespeak for yes we are putting all or
> part of the company on the block.
If it were any company but Novell, I’d be inclined to agree. But rumours
of Novell’s imminent acquisition, either in part or in whole, come up
about every 6 months and have for the last 20 years…
But as a public company, the argument can be made that it’s always up for
sale for the right price. IBM’s up for sale, too, as a publicly traded
company. If you have enough money to buy enough of the stock, you would
own it.
On Fri, 26 Jun 2009 13:06:01 +0000, dragonbite wrote:
>> If it were any company but Novell, I’d be inclined to agree. But
>> rumours
>> of Novell’s imminent acquisition, either in part or in whole, come up
>> about every 6 months and have for the last 20 years…
>
> Kinda like the rumors that Apple was going bankrupt years ago (pre-Jobs,
> or pre-Apple 2.0)
Very much the same sort of thing. And often rumours like that are
started by people trying to manipulate the stock price…
I am not sure, but it looks like. I see that openSUSE got more independence, changes in the build service, the lay off from Novell’s openSUSE staff members.
It looks for me that Novell is trying to get openSUSE in a stable water.
All another stuff is Monopoly and the Economy War between US and the rest of the world.
