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. Vista 10 Inherently Criminal: Vandalising the Competition (Dual Boot, Rival Web Browsers, Online Services)

    Vista 10, the latest incarnation of Windows, takes its anticompetitive aspects to a whole new level, betraying even so-called 'partners' in the process



  2. As Microsoft AstroTurfing/PR Budget Runs Dry, Vista 10 Truths Come Out

    The media manipulation by Microsoft (to the tune of hundreds of millions of dollars spent on 'marketing') grows thin as a growing number of growingly angry early adopters of Vista 10 publicly rant



  3. Links 31/7/2015: Lennart Poettering as 'Linux Hero' and systemd Conference Coming

    Links for the day



  4. Links 30/7/2015: Apache Spark on Z System, Elive 2.6.8 Beta

    Links for the day



  5. Microsoft's Mouthpiece Mary Branscombe Tries to Shoot Down Free Software, But Fails Miserably

    At the CBS-owned ZDNet, which is Free/Open Source software-hostile, new FUD surfaces, but the FUD is so flawed that a full rebuttal is easy and almost imperative



  6. People of New Zealand Must Rise Up to Defend Sovereignty and Stop Software Patents

    The TPPA serves to override (launder) the law of New Zealand, allegedly legalising patents on software in the process



  7. Microsoft Illegally Evades Billions of Dollars in Tax, Says IRS

    The criminal enterprise known as Microsoft finds itself embarrassingly exposed in the courtroom, for the IRS belatedly (decades too late) targets the company in an effort to tackle massive tax evasions



  8. Vista 10 Very Buggy Upon Release, Just as We Have Repeatedly Warned for Weeks

    Vista 10 is prematurely pushed out the door (to meet a deadline) way ahead of it being stable, even remotely polished, and supported by hardware companies (there is a serious drivers issue)



  9. Surveillance Machine With a Keylogger: Vista 10 Will Spy on the User (Over the Internet) Even While Playing Games

    Microsoft is making it clear that even playing a simple game like Solitaire on Vista 10 will make one subjected to spying (for targeted ads); other serious violations of privacy revealed upon release



  10. Links 29/7/2015: Akademy 2015 Ends, NetBSD 7.0 RC

    Links for the day



  11. MPEG-LA is Preparing New Patent Obstruction (Called DASH) Against Free Software, OIN Grows

    A new conspiracy against free multimedia software, set up by the MPEG cartel, is called DASH



  12. New Zealand's Media Gets History Wrong on Software Patents

    Setting the record straight on the fight against software patents in New Zealand



  13. Not Only Vista 10 Crashes a Lot, Any .NET Application Does Too (Updated)

    Microsoft software is quickly becoming synonymous with crashes as any piece of software developed with Microsoft's tools, not just the underlying platform, crashes chronically



  14. The Government of Bulgaria Sells Out to Microsoft, Again

    Despite some promises and reassurances that Bulgaria will consider Free/libre software, the Bulgarian government hands out a lot more of taxpayers' money to the Mafia



  15. Corporate Media Finally Finds Out That Vista 10 Crashes a Lot

    Stability issues of Vista 10 are belatedly reported to be a major catastrophe, leaving it unusable for many early adopters



  16. Links 28/7/2015: Linux 4.2 RC4, New Logos and Bug 'Branding' for FUD

    Links for the day



  17. Patents Roundup: Technicolor, Alice, Voip-Pal, Fitbit, Marijuana Patents, and JDate

    A look at some of last week's patent news, with imperative responses that criticise corporate exploitation of patents for protectionism (excluding and/or driving away the competition using legal threats)



  18. Corporate Lobbyists Including Koch-Connected Front Groups Attack Real and Perceived Patent Reform in the United States

    Looking at some of the latest propaganda for and against a bill which is already too watered-down to actually fix the US patent system



  19. Patents in the Android World Further Complicate Freedom in This Linux-Powered Platform

    A survey of last week's news with special focus on Google and Android, which are trying to coexist and thrive in a world full of patent maximalists



  20. The 'Unitary' Patent Trojan Horse Rammed Down the Throat of Europe

    Under the guise of 'unification' or 'unity', existing patent systems are being abandoned and more power gets passed to corrupt EPO officials



  21. HEVC Cartel is Not News, Only the Names of Backers and the Costs Are New

    A few remarks on and a roundup of recent articles about HEVC, which we first wrote about in spring



  22. IRC Proceedings: July 12th, 2015 – July 25th, 2015

    Many IRC logs



  23. Links 26/7/2015: Purism Librem and Freedom, Akademy Updates

    Links for the day



  24. Vista 10 (Windows 10) Has NSA Back Doors and Front Doors

    Vista 10 to bring new ways for spies (and other crackers) to remotely access people's computers and remotely modify the binary files on them (via Windows Update, which for most people cannot be disabled)



  25. Vista 10 Not Ready, But Released Anyway

    Despite severe technical issues in the rushed-out-the-door Vista 10, Microsoft decides to stick with the deadline, only days after reporting billions of dollars in losses



  26. Links 25/7/2015: Plasma Mobile, Linux Mint 17.2 OEM

    Links for the day



  27. Links 24/7/2015: openSUSE Leap 42.1, Intel With Rackspace for OpenStack

    Links for the day



  28. Links 24/7/2015: GNOME 3.17.4, Mozilla Developer Network Turns 10

    Links for the day



  29. Microsoft Has Run Out of Attempts and Vista 10 Will Definitely Fail

    As Microsoft admits billions of dollars in losses just days before Vista 10 is pushed as a 'free' upgrade, there is no concrete sign that financial recovery is imminent, for the bigger cash cow (Office) suffers a similar fate



  30. GNU/Linux Circles Ought to Stop Promoting Visual Studio, Which is Neither Cross-Platform Nor Free Software

    Media carries on openwashing Visual Studio and perpetuating the illusion that it is not tied to Microsoft Windows


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