05.14.08

Gemini version available ♊︎

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 in other sites/networks: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Reddit
  • email

Decor ᶃ Gemini Space

Below is a Web proxy. We recommend getting a Gemini client/browser.

Black/white/grey bullet button This post is also available in Gemini over at this address (requires a Gemini client/browser to open).

Decor ✐ Cross-references

Black/white/grey bullet button Pages that cross-reference this one, if any exist, are listed below or will be listed below over time.

Decor ▢ Respond and Discuss

Black/white/grey bullet button If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

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.

DecorWhat Else is New


  1. Links 01/02/2023: Stables Kernels and Upcoming COSMIC From System76

    Links for the day



  2. IRC Proceedings: Tuesday, January 31, 2023

    IRC logs for Tuesday, January 31, 2023



  3. Links 31/01/2023: Catchup Again, Wayland in Xfce 4.20

    Links for the day



  4. Links 31/01/2023: elementary OS 7

    Links for the day



  5. Intimidation Against Nitrux Development Team Upsets the Community and Makes the Media Less Trustworthy

    Nitrux is being criticised for being “very unappealing”; but a look behind the scenes reveals an angry reviewer (habitual mouthpiece of the Linux Foundation and Linux foes) trying to intimidate Nitrux developers, who are unpaid volunteers rather than “corporate” developers



  6. Links 31/01/2023: GNOME 44 Wallpapers and Alpha

    Links for the day



  7. Free and Open Source Software Developers' European Meeting (FOSDEM) and KU Leuven Boosting Americans and Cancellers of the Father of Free Software

    The Free Software Foundation (FSF) and its founder, Richard M. Stallman (RMS), along with the SFLC one might add, have been under a siege by the trademark-abusing FSFE and SFC; Belgium helps legitimise the ‘fakes’



  8. Techrights in the Next 5 or 10 Years

    Now that I’m free from the shackles of a company (it deteriorated a lot after grabbing Gates Foundation money under an NDA) the site Techrights can flourish and become more active



  9. 60 Days of Articles About Sirius 'Open Source' and the Long Road Ahead

    The Sirius ‘Open Source’ series ended after 60 days (parts published every day except the day my SSD died completely and very suddenly); the video above explains what’s to come and what lessons can be learned from the 21-year collective experience (my wife and I; work periods combined) in a company that still claims, in vain, to be “Open Source”



  10. IRC Proceedings: Monday, January 30, 2023

    IRC logs for Monday, January 30, 2023



  11. Taking Techrights to the Next Level in 2023

    I've reached a state of "closure" when it comes to my employer (almost 12 years for me, 9+ years for my wife); expect Techrights to become more active than ever before and belatedly publish important articles, based on longstanding investigations that take a lot of effort



  12. The ISO Delusion: When the Employer Doesn’t Realise That Outsourcing Clients' Passwords to LassPass After Security Breaches Is a Terrible Idea

    The mentality or the general mindset at Sirius ‘Open Source’ was not compatible with that of security conscientiousness and it seemed abundantly clear that paper mills (e.g. ISO certification) cannot compensate for that



  13. Links 30/01/2023: Plasma Mobile 23.01 and GNU Taler 0.9.1

    Links for the day



  14. EPO Management Isn't Listening to Staff, It's Just Trying to Divide and Demoralise the Staff Instead

    “On 18 January 2023,” the staff representatives tell European Patent Office (EPO) colleagues, “the staff representation met with the administration in a Working Group on the project “Bringing Teams Together”. It was the first meeting since the departure of PD General Administration and the radical changes made to the project. We voiced the major concerns of staff, the organization chaos and unrest caused by the project among teams and made concrete proposals.”



  15. Links 30/01/2023: Coreboot 4.19 and Budgie 10.7

    Links for the day



  16. IRC Proceedings: Sunday, January 29, 2023

    IRC logs for Sunday, January 29, 2023



  17. [Meme] With Superheroes Like These...

    Ever since the new managers arrived the talent has fled the company that falsely credits itself with "Open Source"



  18. Not Tolerating Proprietary 'Bossware' in the Workplace (or at Home in Case of Work-From-Home)

    The company known as Sirius ‘Open Source’ generally rejected… Open Source. Today’s focus was the migration to Slack.



  19. The ISO Delusion: A Stack of Proprietary Junk (Slack) Failing Miserably

    When the company where I worked for nearly 12 years spoke of pragmatism it was merely making excuses to adopt proprietary software at the expense of already-working and functional Free software



  20. Debian 11 on My Main Rig: So Far Mostly OK, But Missing Some Software From Debian 10

    Distributions of GNU/Linux keep urging us to move to the latest, but is the latest always the greatest? On Friday my Debian 10 drive died, so I started moving to Debian 11 on a new drive and here's what that did to my life.



  21. Stigmatising GNU/Linux for Not Withstanding Hardware Failures

    Nowadays "the news" is polluted with a lot of GNU/Linux-hostile nonsense; like with patents, the signal-to-noise ratio is appalling and here we deal with a poor 'report' about "Linux servers" failing to work



  22. Microsofters Inside Sirius 'Open Source'

    Sirius ‘Open Source’ has been employing incompetent managers for years — a sentiment shared among colleagues by the way; today we examine some glaring examples with redacted communications to prove it



  23. Links 29/01/2023: GNOME 43.3 Fixes and Lots About Games

    Links for the day



  24. The Hey Hype Machine

    "Hey Hype" or "Hey Hi" (AI) has been dominating the press lately and a lot of that seems to boil down to paid-for marketing; we need to understand what's truly going on and not be distracted by the substance-less hype



  25. IRC Proceedings: Saturday, January 28, 2023

    IRC logs for Saturday, January 28, 2023



  26. Unmasking AI

    A guest article by Andy Farnell



  27. The ISO Delusion/Sirius Corporation: A 'Tech' Company Run by Non-Technical People

    Sirius ‘Open Source’ was hiring people who brought to the company a culture of redundant tasks and unwanted, even hostile technology; today we continue to tell the story of a company run by the CEO whose friends and acquaintances did severe damage



  28. Links 28/01/2023: Lots of Catching Up (Had Hardware Crash)

    Links for the day



  29. IRC Proceedings: Friday, January 27, 2023

    IRC logs for Friday, January 27, 2023



  30. Microsoft DuckDuckGo Falls to Lowest Share in 2 Years After Being Widely Exposed as Microsoft Proxy, Fake 'Privacy'

    DuckDuckGo, according to this latest data from Statcounter, fell from about 0.71% to just 0.58%; all the gains have been lost amid scandals, such as widespread realisation that DuckDuckGo is a Microsoft informant, curated by Microsoft and hosted by Microsoft (Bing is meanwhile laying off many people, but the media isn’t covering that or barely bothers)


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