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

12.12.08

Novell Slides Days After the Financial Results

Posted in Finance, Microsoft, NetWare, Novell, SCO, UNIX at 2:12 pm by Dr. Roy Schestowitz

Novell's value slides

THE release of OpenSUSE 11.1 is less than a week away. While the project is marketed as though it’s independent from Novell (it’s not), the company is in poor shape following bad results (the partners at Microsoft are on the same boat). Here is a curious bit from the news:

“There are companies out there that used a huge chunk of their cash to make acquisitions recently, or they bought back their stock at two or three times its current level. Now that the time is finally right, they can’t do a buyback,” said Mark Murphy, a Piper Jaffray Companies analyst who follows Novell Inc. “They’re looking and saying, ‘Is this Armageddon? Is it the Great Depression, Part II?’ What exactly are they sinking into here? So they’re retrenching when ideally they should be doing the opposite.”

[...]

Novell’s stock buyback program has been a conservative one so far, designed to maintain value for shareholders as the company disburses stock-based compensation to employees, said CFO Dana Russell. But Russell acknowledged the company is feeling pressure from its shareholders to spend the cash it holds. In today’s interest market, cash earns only 1 to 2 percent, he pointed out. “People don’t invest in companies like Novell to get a 1 or 2 percent return,” he said.

Dana Russell is right. Some people invested in Novell only to see half of their money gone. That’s almost -50% ‘return’ to be precise, not “1 or 2 percent return.”

Then, there’s the series of acquisitions (recent example). That would be Novell trying to buy its way out of persistent losses while at the same time buying back its own stock [1, 2] to prevent shares from dropping into oblivion.

Novell is far too dependent on Netware [1, 2] and on Microsoft's mercy/giveaways. It’s very much like SCO with a dying UNIX business and cash infusions from Microsoft. SCO too used to contribute to Linux.

“…Microsoft wished to promote SCO and its pending lawsuit against IBM and the Linux operating system. But Microsoft did not want to be seen as attacking IBM or Linux.”

Larry Goldfarb, Baystar, key investor in SCO

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

16 Comments

  1. Yfrwlf said,

    December 12, 2008 at 8:43 pm

    Gravatar

    Last time I said no one was doing very hot over the long period, and that’s obvious due to the recession and all, but after looking at the three month history for several companies, there’s actually an upward movement during the last 30 days for Yahoo, Google, and Red Hat but Novell and Microsoft are lower or leveled off.

    I’m not expert economist or anything, just piecing together what I see and I thought it was interesting. :P

    Either way, it’s a really great time for open source operating systems to become much more known.

  2. Roy Schestowitz said,

    December 12, 2008 at 8:54 pm

    Gravatar

    It’s happening, but not in the English-speaking world (and press); not just yet, anyway. Freedom comes from those that hunt for it, mostly in developing nations.

  3. Anonymous said,

    December 13, 2008 at 6:03 am

    Gravatar

    This is Journalism???

  4. Josh Bell said,

    December 13, 2008 at 8:41 am

    Gravatar

    You can’t read anything into 30 days unless you are day trading. Investing in any company takes a lot of patience. The market jumps around. Granted Novell and MS over the last 30 days overall have dropped slightly 7.5 % for Novell and 6.75 % for MS, while Red Hat and Google went up Red Hat up 6.75% and Google up 8.5%. If you look at the last 90 days though you will see that Red Hat has the largest drop, followed by Novell, then Microsoft and then Google. Red Hat in Mid November lost almost 60% of its value. Neither of the other three have seen that large of a drop in a one day period. Just another way to view it.

    Take that FWIW since apparently I am only here to heckle and I have no sense of humor.

  5. Roy Schestowitz said,

    December 13, 2008 at 8:47 am

    Gravatar

    Please show me where in this post I have Red Hat (RHT) or Google (GOOG) mentioned.

  6. Dan O'Brian said,

    December 13, 2008 at 9:01 am

    Gravatar

    Roy: that’s precisely the problem. You aren’t mentioning other companies, which takes the stock value of Novell out of context.

    It’s like badmouthing someone for only getting a 72% on an exam while failing to mention that everyone else in the course flunked it.

  7. Roy Schestowitz said,

    December 13, 2008 at 9:36 am

    Gravatar

    The problems of Novell are shared by many in a slumping economy. Readers who don’t live under a rock already know this.

  8. Josh Bell said,

    December 13, 2008 at 9:46 am

    Gravatar

    The response wasn’t to you Roy, the response was to Yfrwlf who mentioned those companies in the first comment.

    Last time I said no one was doing very hot over the long period, and that’s obvious due to the recession and all, but after looking at the three month history for several companies, there’s actually an upward movement during the last 30 days for Yahoo, Google, and Red Hat but Novell and Microsoft are lower or leveled off.

    I’m not expert economist or anything, just piecing together what I see and I thought it was interesting.

    Either way, it’s a really great time for open source operating systems to become much more known.

  9. Yfrwlf said,

    December 13, 2008 at 3:11 pm

    Gravatar

    @Josh: Yeah, I know all that, you basically said the exact same thing I said in an earlier article about the financial state of MS and Novell and such.

    Ultimately it’s very hard to assume anything, there’s a lot of jumping around, but one thing is clear and that is businesses aren’t doing so hot right now across the board. I think what may help to give the best picture will be seeing where everyone is at ratio-wise after the economy is over with, as well as seeing which ones rebound the fastest. Not that the stock market is a gold-backed bastion of truth or anything. You take what knowledge you feel you can.

    However, many analysts try to make predictions based off shorter-term events. I give them kudos for trying, but it’s certainly riskier to do so, you’re right.

  10. Roy Schestowitz said,

    December 13, 2008 at 3:20 pm

    Gravatar

    Remember that Novell and Microsoft are both buying their own stock very massively (esp. Microsoft). The share prices don’t tell the whole story.

  11. Yfrwlf said,

    December 13, 2008 at 3:37 pm

    Gravatar

    @Roy: True and that’s one great example of the unreliability of stock values, there’s a lot more you have to look at to get an accurate picture of how a company is doing. Obviously Enron is another good example, along with what’s-his-face you just reported on (didn’t care enough to try to remember!). :)

  12. Yfrwlf said,

    December 13, 2008 at 3:38 pm

    Gravatar

    About the guy, I mean, cause he was a jerk. :P

  13. Roy Schestowitz said,

    December 13, 2008 at 3:41 pm

    Gravatar

    Madoff?

    http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLD12500520081213
    http://online.wsj.com/article/SB122910977401502369.html?mod=googlenews_wsj
    http://www.bloomberg.com/apps/news?pid=20601103&sid=aU0f02zh0mtc&refer=us
    http://www.reuters.com/article/marketsNews/idUSN1232707620081212
    http://www.nytimes.com/2008/12/13/business/13investors.html?em

  14. Roy Schestowitz said,

    December 13, 2008 at 3:48 pm

    Gravatar

    About the guy, I mean, cause he was a jerk.

    “Former Nasdaq chairman”

    That’s how high the corruption goes in FraudStreet.

    Microsoft (Public, NASDAQ:MSFT) has a little past of fraudulent activity as well. Never mind the tax evasion, the bribery, the bullying, and even the recent imprisonment (for fraud) of an ex-Microsoft manager.

  15. Yfrwlf said,

    December 13, 2008 at 6:20 pm

    Gravatar

    Yep, thanks, and yes they do, I think tax evasion and fraud of all sorts goes on all over and is pretty widespread, so it wouldn’t at all surprise me.

  16. Roy Schestowitz said,

    December 13, 2008 at 6:57 pm

    Gravatar

    When the economy is artificially awash with money, nobody minds what the neighbour does. People will hopefully stand up and demand truth now. There’s lots more to be found under the rug. I believe this to be only the beginning.

What Else is New


  1. Google's Fight to Keep APIs Free is Lost, Let's Hope Google Continues Fighting

    SCOTUS refuses to rule that APIs cannot be considered copyright-'protected', despite common sense and despite Java (which the case is about) being Free/libre software



  2. Patent Trolls in the Post-Alice World

    A round-up of news about patent trolls in the United States, some of whom are are doing well and some of them not as well



  3. DDOS Attacks Against Techrights

    Information about some of the most recent DDOS attacks against this Web site and the steps to be taken next



  4. The Patent System Not What it Used to be, Large Corporations and Patent Lawyers the Principal Beneficiaries

    A look at some recent patent stories and what can be deduced from them, based on statistics and trends



  5. After Intervention by the Council of Europe Comes a Detailed Summary of the Situation in the European Patent Office (EPO)





  6. IRC Proceedings: May 31st - June 27th, 2015

    Many IRC logs



  7. Links 28/6/2015: Manjaro Linux Cinnamon 0.8.13, VectorLinux 7.1

    Links for the day



  8. Williamson v. Citrix Online (at CAFC) Reinforces Alice v. CLS Bank (at SCOTUS) in Crushing Software Patents

    More patent news from the United States, again serving to indicate that software patents over there are getting weak (harder to defend in court or acquire from the patent office)



  9. Proskauer Rose LLP is Cherry-Picking Cases to Make Software Patents Seem Eligible Despite Alice v. CLS Bank

    Naming and shaming those who are trying to reshape the consensus despite a rather consistent pattern of software patents being rejected



  10. IAM Biased: How IAM 'Magazine' Glorifies Patent Stockpiling

    A look at the bias of one of the most overzealous sites for and by patent lawyers



  11. PATENT Act No Longer in the News... and That's Just Fine

    Putting the PATENT Act aside for the time being, for it has little or no impact on the really problematic patents



  12. The Latest Lies From Microsoft's PR Apparatus/Public Face, Mr. Nadella

    Having spread the outrageous lie that “Microsoft loves Linux” (whilst obviously attacking it in many ways), Microsoft's CEO (essentially Bill Gates' right-hand man) says Microsoft is “one of the biggest contributors to Linux kernel” (because of proprietary software it tries to contaminate it with while violating the terms of the GPL)



  13. Microsoft Jack (Schofield) Promotes Microsoft's Proprietary Lock-in and Calls People Who Recommend Free/Libre Software 'Trolls'

    Jack Schofield, writing for a Bill Gates-funded paper despite claiming to have retired, promotes Microsoft Office and insults all those readers who do not agree with him



  14. The Council of Europe Slams the EPO as Political Pressure Grows for EPO Management to Obey the Law

    Battistelli et al. come under yet more fire as politicians -- many of whom from Battistelli's home country -- become better informed of the EPO's management fiasco, abuses, and scandals



  15. Operating Systems Usage Based on Technical Site Statistics

    ome numbers to show what goes on in sites that do not share information about their visitors (unlike Windows-centric sites which target non-technical audiences)



  16. Links 27/6/2015: Wine 1.7.46, SparkyLinux 4.0

    Links for the day



  17. Proprietary Software on Top of Proprietary Software (AV on Windows) Only an Illusion of Security

    Remarks on the recent revelations about code and communication interceptions targeting insecurity firms and Microsoft's claim that 'transparency' alone would be enough to assure security



  18. The EPO's Circus of Nepotism, Corporatism and Gross Abuse is Promoting the Unitary Patent

    The shameful management of the EPO, which Benoît Battistelli constructed based on his nefarious self-serving agenda, keeps pushing forth in a direction that greatly harms European citizens while mistreating the EPO's technical staff (scientists and examiners)



  19. Links 26/6/2015: Ardour 4.1, GNOME 3.17.3 Released

    Links for the day



  20. An Estimated 1,000 EPO Staff in Munich Demonstrated Against EPO Management Yesterday Afternoon

    Earliest coverage of yesterday's protest against EPO corruption and abuses



  21. Microsoft Windows So Insecure That Even Fonts Are Remotely Exploitable

    Windows userbase is once again under serious threat and high risk because something as simple as fonts (rendering of text/pixels on the screen) isn't done securely in Windows



  22. Microsoft is 'Buying' the Media Ahead of Vista 10 Launch

    Signs serve to indicate that Microsoft is already tightening its grip on technology news sites, ensuring that they give Microsoft disproportionate levels of coverage



  23. DockerCon 2015 Infiltrated by Microsoft

    DockerCon gives room to Microsoft propagandists who want to divert the audience's attention from secure GNU/Linux focus to proprietary Windows with back doors and surveillance



  24. Links 25/6/2015: Docker Focus, NVIDIA Opening Slightly

    Links for the day



  25. The Lie or the Fiction of Microsoft Tolerating GNU/Linux

    The 'Microsoft loves Linux' nonsense cannot be put to rest, as that tired old lie keeps resurfacing in the media



  26. Microsoft is Again Demonstrating That It is Not Interested in Making Windows Secure

    Microsoft decides to leave Windows with flaws in it, claiming that fixing the flaws would not be worth Microsoft's resources



  27. Not Only is Vista 10 Not Free, It is Getting More Expensive, According to the Taiwanese Press

    More proof that Microsoft charges quite a lot for Vista 10 (at OEM level), despite the perpetual deception about costs



  28. EPO Protest in Munich and Growing Unpopularity of EPO Management, Media Manipulation by the Management

    Poll shows that the European Patent Office (EPO) comes under fire for its media strategy which involves wasting taxpayers' money on fake/organic media coverage that glorifies the EPO



  29. Links 24/6/2015: Meizu MX4, Red Hat and Samsung Partner, Women in Open Source Awards

    Links for the day



  30. Links 23/6/2015: Cinnamon 2.6.9, Red Hat Summit

    Links for the day


CoPilotCo

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

CoPilotCo

Recent Posts