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. The EPO Still Wastes Public Money on Publicity Stunts and 'Reputation Management' Campaigns

    The European Patent Office (EPO) is misusing public funds to manufacture self-congratulatory publicity for itself whilst attacking those who write negative commentary



  2. The Lessons of Stuxnet: Never Use Microsoft Windows

    Windows is sufficiently 'NSA-compatible' for remote compromise and physical damage (sabotage) to highly sensitive, high-risk equipment



  3. Links 30/5/2015: Wine 1.7.44, Berry Linux 1.20

    Links for the day



  4. White House Intervention Harms Android and Every Software Developer on the Planet

    US Solicitor General Donald Verrilli urges the Supreme Court (SCOTUS) to let APIs be covered by copyrights, rendering almost every program a potential copyright violation



  5. Microsoft Lobbying in India Shoots Down or At Least Weakens Free/Libre Software Policy

    Microsoft's covert efforts (lobbying with the help of public partners like NASSCOM) to eliminate an India-leaning software policy in India is finally paying off



  6. Propaganda Mode for UPC Agreement Whilst EPO Increasingly Grants Patents on Software

    In order to make the Unitary Patent a reality (towards a 'no place to hide' patent approach) misleading claims are being made



  7. Patents Are Not Source Code

    Ford is once again misleading regarding Open Source, mischievously associating a patent pledge with Open Source



  8. Links 29/5/2015: ALT Linux 7.0.5, Google I/O 2015

    Links for the day



  9. Links 28/5/2015: SourceForge Hijack, RIP Marco Pesenti Gritti

    Links for the day



  10. Censorship on Reddit Has Gotten (Condé) Nasty and Silent, Even Actively Silenced

    Condé Nast has turned Reddit into a platform of censorship after the acquisition



  11. The Supreme Court of the United States Helps Patent Trolls

    In an unforeseen kind of ruling, the same court which slapped down a lot of software patents last year is now legitimising the actions of a patent troll



  12. Patent Lawyers Fight Hard for the Future of Software Patents

    Media that is dominated by patent lawyers and targets an audience of patent lawyers refuses to accept the post-Alice reality



  13. Fortune Glorifies Patent Troll Jay Walker (Patent Utility)

    Jay Walker, a patent troll, creates a Web-based trolling/'licensing' service and the corporate media helps him



  14. Stealing Android's Thunder, Making It All About Apple and Microsoft During Google I/O

    Misleading articles and conjoined media/analyst attacks on Android coincide with Google's event where major Android announcements are being made



  15. British Government May be a Step Closer to GNU/Linux (on the Desktops, Not Just Servers)

    The British government stops paying the criminal company that blackmails its members, thereby increasing the possibility of complete escape from proprietary software



  16. Microsoft's Patent Allies LG and Sony Agree to Put Microsoft Inside Android

    LG and Sony (of Rockstar Consortium) follow Samsung and Dell in Microsoft's campaign to turn Android into 'Microsoft Android' using patents-induced pressure/leverage



  17. Yet Another Major Security Deficiency in UEFI

    UEFI is inherently insecure, more so than the alternatives which it strives to replace, including Free/libre ones



  18. Links 27/5/2015: Fedora 22 is Out, Mandriva Liquidated

    Links for the day



  19. Patent Scope at the EPO is Totally Out of Control, UPC Will Make Things Worse

    A look at the practical issues with the EPO, where patent scope and litigation scope have been vastly extended so as to benefit multinational corporations and possibly patent trolls



  20. Links 26/5/2015: Reviews of Kubuntu 15.04, Linux 4.1 RC5

    Links for the day



  21. Süddeutsche Zeitung Says Talking Helps While EPO Management Back-stabs Other Side of the Table

    German media gives the impression that there is peace and harmony now that Benoît Battistelli and his circle of power speaks to staff, but nothing is said about simultaneous (albeit covert) attacks against that staff



  22. Large Corporations Call the Shots in US Patent Reform

    A reminder of where we stand on the issue of patent 'reform' in the US and who is controlling or shaping it



  23. Microsoft Puts Proprietary Windows and Hyper-V Inside the Free Software-Centric OpenStack

    OpenStack, which celebrates rapid growth in this month's event in Canada, is facing a proprietarisation threat from Microsoft



  24. Microsoft's Secret Lobbying, Bullying, and the Long History of Blackmailing Politicians Around the World

    British media covers Microsoft's abuse in the UK, but there are many similar incidents, and not just in the UK



  25. Frankfurter Allgemeine Zeitung on Benoît Battistelli and Four EPO Suicides

    German press article from April 2015 (with translations)



  26. Links 24/5/2015: CrossOver 14.1.3, NTFS-3G Vulnerability

    Links for the day



  27. Links 23/5/2015: Fedora 22 to May 26th, Netflix in SteamOS

    Links for the day



  28. The Patents Production 'Industry' (Patent Lawyers) Still Fights Hard to Salvage Software Patents

    A review of recent writings about software patents and patents on business methods in the United States, demonstrating that patent lawyers have gotten very vocal and sneaky (trying to evade the rules)



  29. Patents as a Marketing Strategy: USPTO Now Part of the Advertising Industry

    The existence of publicity patents, or patents whose sole purpose is to advertise some products, serves to discredit the US patent office, which was originally set up to promote science and technology



  30. Microsoft Blackmails and Extorts British Politicians Over Open Standards and Free Software-Leaning Policies

    Microsoft's digital imperialism in the UK getting defended using blackmail, reminding a lot of Brits that Microsoft is just as evil as ever before


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