EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

05.14.08

Novell Starts Buying Its Own Stock (Sign of Weakness)

Posted in Finance, Microsoft, Novell at 3:57 am by Dr. Roy Schestowitz

If the investors go away, then someone needs to fill the void

Novell has just earned itself a very low position (48th) in the “most influential tech vendors” ladder, which seems very gut feeling-driven. Almost on the very same day came this press release from Novell:

Novell, Inc. (Nasdaq: NOVL) today announced that its Board of Directors has authorized the repurchase of up to $100 million of the Company’s outstanding shares of common stock.

Associated Press (at Forbes) had this to add about the buyback program:

There is no fixed expiration date for the program.

Ron Hovsepian smilesIt was almost a year ago that Ron Hovsepian told Reuters about the possibility of buybacks, or at least responded to a question about it. We wrote about Novell buybacks in [1, 2] and some more related posts include [1, 2, 3, 4, 5].

We also discussed Novell’s massaging of its financial figures, which may be similar to Microsoft’s [1, 2, 3]. Novell expects layoffs, not just off-shoring that Bill Gates promotes. Both companies share a similar dilemma which is tied to legacy. Microsoft is by all means on a similar boat, with buybacks that left it without so much cash in the bank (far less than ever before).

Novell's Google Trends chart
Google Trends: search volume for “Novell”

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

12 Comments

  1. Niklas (sic!) Koswinkle said,

    May 14, 2008 at 4:27 am

    Gravatar

    If you want to see a sign of weakness, you don’t have to look any further than this blog: It’s hilarious the read to your little, un-enlightened ‘analyses’ of the stock value of Novell. Firstly, it is very obvious that you have no idea what you are talking about. But that’s not the funny bit. The funny bit is that you seem so desperate to see a correlation between a business-decision, that you think of as immoral, and the economic well-being of the actors who made that decision.

    Aren’t you educated enough to understand that the latter hasn’t got anything to do with the former? Are you really expecting a financial backlash due to a politically incorrect decision?

    You don’t know anything about the real word; but we already knew that…

    For the record: Novell is doing much better than Sun which you – in spite of evidence to the contrary – tout as defender of freedom.

    Note: comment has been flagged for arriving from a possible incarnation of a known (eet), pseudonymous, forever-nymshifting, abusive Internet troll that posts from open proxies and relays around the world.

  2. Paulo said,

    May 14, 2008 at 6:45 am

    Gravatar

    This post is a total joke. I have been to this site a few times and after reading this post, you clearly have no idea what you are talking about. Before posting any ridiculous comments on share buybacks, perhaps you should sharpen your business skills just a ‘wee’ bit.

  3. ZiggyFish said,

    May 14, 2008 at 11:40 pm

    Gravatar

    if you look at novels history, you will see that Novel have been going down hill since the start of the Microsoft – Novel deal

  4. Roy Schestowitz said,

    May 14, 2008 at 11:46 pm

    Gravatar

    It would have been the same without Microsoft, I suppose, but the problem is that with Microsoft’s help Novell is hurting IBM, Sun, Red Hat and others for a variety of reasons. Many of those companies promote Free software.

  5. Niklas (sic!) Koswinkle said,

    May 15, 2008 at 3:49 am

    Gravatar

    I realize that you didn’t bother to search for anthing else than ‘Novell’.

    Try ‘Sun Java’. Yep, it’s going downwards.

    Now for the funny part: Search ‘Red Hat’. Wow. That’s a sharp decline.

    What does this tell us? Are all values in the world rapidly falling? No, it’s only Google Trends which exaggerates the developments. Google Trends is NOT a serious source of information. Tell me you haven’t even realized that they don’t indicate any units on the y-axis? Yeah, that’s right; you can’t tell whether it indicates cents or millions…

    Note: comment has been flagged for arriving from a possible incarnation of a known (eet), pseudonymous, forever-nymshifting, abusive Internet troll that posts from open proxies and relays around the world.

  6. ZiggyFish said,

    May 15, 2008 at 4:29 am

    Gravatar

    Show me the graph from a ‘serious source of information’

  7. Niklas (sic!) Koswinkle said,

    May 15, 2008 at 4:35 am

    Gravatar

    Perhaps there is none? Is that my mistake? It is no ME who is desperately searching for bad news about Novell.

    One thing is for sure: Google Trends is NO source for reliable info on stocks.

    Note: comment has been flagged for arriving from a possible incarnation of a known (eet), pseudonymous, forever-nymshifting, abusive Internet troll that posts from open proxies and relays around the world.

  8. Shane Coyle said,

    May 15, 2008 at 4:49 am

    Gravatar

    Well, here is a comment/quote I had once posted regarding the general idea of stock buybacks – anyone familiar with my articles may recall, I am finance-impaired as well:

    A bit about buybacks for those of us who are finance-impaired (me):

    Buy-backs are intended to give investors increased confidence. The logic goes something like this: if a company buys back its own stock, the share price should go up – first, there are fewer shares outstanding after the buy-back so each share represents a greater portion of the company’s total equity, and second, with fewer shares outstanding the company’s earnings per share and book value per share figures should look more attractive, which might have a positive effect on the stock. A buy-back is also said to counteract the dilutive nature of employee share incentive schemes. But buy-backs do not always result in the share price going up. For one thing, the company has had to spend some of its cash reserves – which really belong to the shareholders anyway. While the buy-back seems to counteract the dilutive effect of employee stock options, all companies are really doing is transferring the problem: the dilutive effect of the employee share incentive schemes is now directly visible on its balance sheet where that huge pot of cash used to be. But just as importantly, by definition buying back stock means that the company feels there is no better way of using that cash reserve than ploughing it into the stock markets to buy its own shares – it does not feel that investing that cash in additional personnel, assets, intellectual property, or even other businesses would be a better use of that money. For some, it could be seen as the last desperate measure of a management team which has run out of inspiration.

    FWIW

  9. ZiggyFish said,

    May 15, 2008 at 5:12 am

    Gravatar

    Niklas (sic!) Koswinkle:

    your the one that is ‘desperately searching’ to prove Roy wrong. And you haven’t found any evidence to prove him wrong.

  10. Roy Schestowitz said,

    May 15, 2008 at 5:25 am

    Gravatar

    I have a follow-up post on this buyback story coming shortly. By the way, in order to demonstrate Novell success (or lack thereof) as a function of time one can consider # of employees. Guess what? it’s going down. Another criterion could be market cap. Even executives/CEOs shuffle.

  11. Niklas (sic!) Koswinkle said,

    May 15, 2008 at 5:53 am

    Gravatar

    Ziggy, it is Roy who has to prove HIS outrageous theories, not me.

    Note: comment has been flagged for arriving from a possible incarnation of a known (eet), pseudonymous, forever-nymshifting, abusive Internet troll that posts from open proxies and relays around the world.

  12. ZiggyFish said,

    May 15, 2008 at 6:00 am

    Gravatar

    Niklas (sic!) Koswinkle:

    I would agree with you if you had something back up your position. All I’ve heard from you is either FUD for personal attacks.

What Else is New


  1. Links 20/10/2019: GNU/Linux at Penn Manor School District, Wine-Staging 4.18, Xfce 4.16 Development, FreeBSD 12.1 RC2

    Links for the day



  2. Guest Post: Understanding Autism for More Complete Inclusion

    "...assuming that autistic people are all the same isn't only technically wrong, it is misleading and leads to harmful and needless misunderstandings."



  3. Guest Post: Free Software Freedom is Not a Freedom of Choice

    The concept of "Freedom of Choice" and how the ruling class uses it to give a false impression of "Freedom"



  4. Guest Post: Free Software Developers and Pursuing 'Market Share'

    "The only people interested in software freedom are (almost always) free software developers. And users are interested in freedom to a very limited extent: the "free beer" side. Even many free software developers are only interested in the "free beer" part of free software."



  5. The Assertion That Microsoft Uses Communist Tactics Against GNU/Linux and Free/Libre Software

    A study of Taistoism might help understand how Free/libre software is being undermined



  6. European Patent Office and US Patent and Trademark Office Cranks Discovered Buzzwords, Stopped Worrying, Started Granting Patents They Know to be Fake

    The world's patent repositories are being saturated with loads of junk patents or patents that have no legal bearing but can still be leveraged for extortion purposes; the EPO is resorting to lies and artificially-elevated buzzwords to justify granting such fake (yet ruinous) patents



  7. IRC Proceedings: Saturday, October 19, 2019

    IRC logs for Saturday, October 19, 2019



  8. “The True Hypocrite is the One Who Ceases to Perceive His Deception, the One Who Lies With Sincerity,” Said André Paul Guillaume Gide (Nobel Prize in Literature)

    Lies flow like water in the realm of EPO and its publishers, whose sole role is dissemination of deliberate falsehoods, misnomers and misinformation



  9. The EPO Cannot Guard Fake European Patents From Scrutiny (in the Long Run)

    Legal certainty associated with newly-granted European Patents is already pretty low and as long as the EPO refuses to acknowledge that its courts (or boards) lack autonomy the EPO merely brushes a growing problem under the rug



  10. Links 19/10/2019: DeX Discontinued, DXVK 1.4.3 and Wine 4.18 Released

    Links for the day



  11. 'Corporate Linux' Will Not Protect Software Freedom

    The corporate model is inherently not compatible with software that users themselves fully control (or Software Freedom in general), so we must rely on another model of sovereignty over code and compiled code (binaries)



  12. IRC Proceedings: Friday, October 18, 2019

    IRC logs for Friday, October 18, 2019



  13. 26,000 Posts

    We want to thank those who help spread the word; it gives us moral support and morale.



  14. The Myth of 'Analysts'

    People with exaggerated roles (exaggerated by corporate media and corporations that control them) distort public perceptions about their clients; they're in effect just elevated marketing or Public Relations (PR) operatives



  15. The FSF Has Two Acting Presidents Now

    Alexandre Oliva, who acted as a sort of deputy of Richard Stallman in recent weeks, sheds some much-needed light on the current situation



  16. Should Anybody Dictate the Free Software Movement?

    "There's a great myth, as Jagadees reminds us, that advocacy doesn't produce software. That myth is corporate, and proper advocacy has at times produced the greatest software in the history of computing. If we want great Free software to continue, we need advocacy more than ever."



  17. Links 18/10/2019: More KDE Events and OpenBSD 6.6

    Links for the day



  18. We Don't Know Who Will Run the Free Software Foundation, But We Know Who Will Run the GNU Project

    Software Freedom is under a heavy and perhaps unprecedented attack; some people out there are paid by the attackers to celebrate this attack and defame people (cheering for corporate takeover under the blanket of “Open Source”), but the founder of the Free software movement remains alive, well, and very much active



  19. New EPO Meme: Who Wants to Make Billions From a 'Public' Monopoly?

    What was supposed to be a cash-balanced patent office became a money-making monster that fakes ‘crises’ to attack hard-working examiners



  20. EmacsConf Without Richard Stallman

    Now that emacs is being 'rebranded' this kind of meme seems apt



  21. IRC Proceedings: Thursday, October 17, 2019

    IRC logs for Thursday, October 17, 2019



  22. Guest Article: In the Absence of Richard Stallman OEM Source Software ('Open Source') is Trying to Hijack Even Emacs

    "Now they have to create some fictional history. No need to worry."



  23. Guest Article: Techies Should Not Dictate the Free Software Movement

    "We should start a second phase of the Free software movement that's making good software and putting users at the center."



  24. Links 17/10/2019: Ubuntu Turns 15, New Codename Revealed, Ubuntu 19.10 is Out

    Links for the day



  25. Free as in Free Speech (Restrictions May Apply)

    When limits of speech are not safety-related rules but political correctness or conformism



  26. There Won't be Patent Justice Until Patent Trolling Becomes Completely and Totally Extinct

    SLAPP-like behaviour and extortion/blackmail tactics using patent monopolies are a stain on the patent system; it's time to adopt measures to stop these things once and for all, bearing in mind they're inherently antithetical to the goal/s of the patent system and therefore discourage public support for this whole system



  27. EPO Staff Union and Staff Representatives Ought to Demand EPO Stops Bullying Publishers and Censoring Their Sites

    An often neglected if not forgotten aspect of EPO tyranny is the war on information itself; EPO management continues to show hostility towards journalism and disdain for true information



  28. Bribes, Lies, Fundamental Violations of the Law and Cover-Up: This is Today's European Patent Office

    It has gotten extremely difficult to hold the conspirators accountable for turning Europe’s patent office into a ‘printing machine’ of the litigation industry and amassing vast amounts of money (to be passed to private, for-profit companies)



  29. The Free Software Foundation (FSF) Lost Almost Half (3 Out of 8) Board Members in Only One Month

    As the old saying goes, a picture (or screenshot) is worth a thousand words



  30. IRC Proceedings: Wednesday, October 16, 2019

    IRC logs for Wednesday, October 16, 2019


RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

Recent Posts