Is a reach for takeover likely?

Summary: Analysis of Novell's financial state and destiny

A RECENT comprehensive survey showed that, based on votes, Novell is the most likely technology company not to survive this year (in its current form), but Sun Microsystems was a close candidate too. It was beaten by Novell by a small margin. Given how close Sun came to being acquired by IBM (how about Novell getting swept up by IBM?), it is not surprising to see a comparison between the two companies. The following new article from Research 2.0 does exactly that:

We’ve looked at a set of proprietary server spending data from enterprise customers and Sun is in the Novell (NOVL) category in terms of technology roadmap, spending plans and vulnerability.

Another research-oriented report about Novell is being marketed right now.

This report presents an in-depth business, strategic and financial analysis of Novell, Inc.. The report provides a comprehensive insight into the company, including business structure and operations, executive biographies and key competitors. The hallmark of the report is the detailed strategic analysis on the company.

Watch what happened shortly after the second Novell (NOVL) downgrade in less than a week. The downgrade pushed it down despite a relatively strong week for other companies. The effect of this downgrade was noted by Bloomberg too.

Novell Inc. (NOVL US) slid the most since March 20, falling 4.9 percent to $3.89. The second-largest U.S. seller of Linux software was cut to “hold” from “buy” at Jefferies Group Inc.

The stock market races upwards while Novell falls.

H&R Block Inc led decliners in the S&P 500 index with a loss of 4.9% followed by losses in Stericycle Inc of 4.1%, in Novell Inc of 3.9%, in Wal-Mart Stores of 3.7%, in Abercrombie & Fitch of 3.5%.

More of the same in Fox:

Novell Inc. (NOVL) The rare loser in the software sector, NOVL fell 4.1% to end the week, last trading at $3.73 – a loss of 16 cents on the day.

Novell's future does not look bright. ⬆