05.15.08

Novell’s Buybacks Not Enough, Says Analyst

Posted in Finance, Novell at 5:37 am by Dr. Roy Schestowitz

Further privatisation required

Yesterday we wrote about Novell's new buyback program. There are some more reactions to it now. Sarcastically, for example, says the following guy: “Novell finds someone willing to buy $100M worth of its stock.”

In January, Jefferies analyst Katherine Egbert predicted the buyback when she raised her rating on Novell stock from hold to buy and jacked her price target 50 cents to $7.50

He also refers to this post, which comes from one of the most pro-Microsoft publications out there (probably second only to Motley Fool/MSN).

Katherine Egbert, an analyst at Jefferies & Co., notes that the buyback is “unlikely to move the EPS needle, even if executed quickly and entirely.” She points out that the company has about $1.8 billion in cash on its balance sheet, or about 78% of Novell’s current market valuation of about $2.3 billion. (Net cash is around $1 billion.)

Then again, Katherine Egbert’s guesswork typically has it wrong.

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

This post is also available in Gemini over at:

gemini://gemini.techrights.org/2008/05/15/novell-buybacks-barrons-heckle/

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

2 Comments

  1. b0rsuk said,

    May 15, 2008 at 7:11 am

    Gravatar

    I’d like to point out the stats you use to back up your claims are misleading. Earlier (I believe comments were disabled) you pointed out to trends.google.com to illustrate that Novell/Suse is going down, or whatever. Well, guess what ? The same downward tendency is true for
    http://www.google.com/trends?q=debian%2C+winxp%2C+fedora&ctab=0&geo=all&date=all&sort=0
    debian, winxp, fedora . Not Ubuntu though.

    “Operating system” and “linux” also go down in trends.google.com stats. So it’s probably something more general. I believe this happens because computers in general go mainstream, and are increasingly used by non-technical users. Such users often don’t care what OS they use. They just use whatever happens to be on the machine at the moment of purchase.

    b0rsuk

  2. David Flax said,

    May 15, 2008 at 5:50 pm

    Gravatar

    The shame is you are really don’t understand stock buybacks. They are not always bad. Novell is cash heavy and buying back stock is good for investors who see the EPS go up and their stock value goes up. It helps to bone up on understanding why companies buy back stock. Using google trends isn’t a way to garner anything more than simple trends is misleading at best,, at worst it’s fraudulent.

What Else is New


  1. Luke Smith on Why Free Software Matters and 'Open Source' is Meaningless

    A video just released by a popular YouTube channel



  2. Links 16/5/2021: ExTiX 21.5, Drumstick Multiplatform MIDI File Player Refresh

    Links for the day



  3. EPO.org is a Really Awful Source of Information

    The site that bears a .org suffix is actually more like a private corporation lying about itself in order to save face and attract more money -- or in other words funds that will be squandered and stolen by corrupt administrators



  4. IBM Has Changed a Lot Since 2018, and Not for the Better

    IBM isn't that much of an ally of GNU/Linux as a community-led or community-centric operating system; IBM is in it all just for IBM and we need to treat IBM accordingly



  5. [Meme] Criticising IBM is Racist and Intolerant

    Systemd is becoming untouchable and its critics are framed as "toxic" or "trolls", no matter the facts and irrespective of the technical substance of their complaints



  6. Combatting Revisionist History (Post From 2015, Years Before IBM Bought Red Hat and Increased Vendor Lock-in)

    Today we republish this forum post from more than 6 years ago; in light of what IBM did to CentOS and its vicious attack on the founder of the GNU/Linux operating system we must understand the systemd agenda, which the FSF can more openly speak about now that there are no financial strings



  7. Kyle Wiens, CEO of iFixit: Right to Repair

    Uploaded earlier this month was this talk and accompanying slides; summary below



  8. IRC Proceedings: Saturday, May 15, 2021

    IRC logs for Saturday, May 15, 2021



  9. [Meme] When All That Matters is 'Production' and 'Timeliness'

    The EPO has gone down the same route as the U.S. Patent and Trademark Office (USPTO) when it comes to patent quality; as if the goal is to grant 11 million patents (most of them in just a few decades) rather than assess the impact of such patents



  10. The EPO's War on Justice and Assault on the Law -- Part 8: The Radical Student “Brotherhood”

    The latest part in this series explores the roots of Judge Josefsson; that can help explain how Benoît Battistelli constructed his stacked EPO ‘court’, which he and António Campinos basically control to rubber-stamp whatever illegal practices they engage in (in pursuit of money and power, at the expense of the law)



  11. Christoph Ernst Lecturing Us on “Transparency” and EPO Corruption (as Well as Assault on the EPC) Becoming a “New Normal”

    The EPO’s administration continues rushing ahead with an unlawful agenda, exploiting a pandemic that’s gradually coming under control regardless to shred apart the EPC



  12. Richard Stallman's Talk About New/er Risks to Free Software (Free as in Freedom-Respecting, Libre)

    Richard M. Stallman (RMS) gave the above talk not too long before the attacks on him intensified greatly, serving to silence him for nearly 2 years



  13. Jacques Michel and Willy (Guillaume) Minnoye: Stakeholders in EPO Lawlessness

    Former EPO Vice-Presidents who wish not to be held accountable for what they did in the Office (or be chased after leaving their duties, finishing/ending terms there) are adding fuel to the illegal agenda of an EPOnian regime



  14. Links 15/5/2021: Godot 3.3.1 RC 2 and Pine64 Hardware in Focus

    Links for the day



  15. The EPO's War on Justice and Assault on the Law -- Part 7: Calle's Strange Metamorphosis

    Sources believe the “legal anarchy” that EPOnia became notorious for, especially when it comes to handling referrals at the EPO‘s BoA, will become a dark legacy — a legacy that would, if he was alive, disappoint even Josefsson’s source of inspiration



  16. Making up Law at the EPO

    Another video about the ongoing EPO series and some news/commentary from around the Web



  17. Over a Thousand Videos (or Audio Files) and More Protocols Supported

    From just a Web site (ordinary HTTP/S protocol) we've expanded to alternative channels of communication; this is a quick roundup, with focus on last night's development work (already pushed into our self-hosted Git repository)



  18. IRC Proceedings: Friday, May 14, 2021

    IRC logs for Friday, May 14, 2021



  19. Nathan Proctor: Right to Repair and the DMCA

    LibrePlanet 2019 video



  20. [Meme] Calle Calling...

    The values of the Habermasian EPO judge depend on who’s paying the salary



  21. The EPO's War on Justice and Assault on the Law -- Part 6: The Habermasian Who Warned About “Legal Anarchy”

    The political orientation of a Benoît Battistelli-appointed EPO judge who has the audacity to talk about legal anarchy and bemoan abuse of the law; the António Campinos administration extended his term until (at least) 2027



  22. Paid-for Plugs and Coordinated Marketing Fluff (PR Campaigns) Are Ruining 'Linux' Sites

    Junk 'articles' (just marketing disguised as 'news') spoil the World Wide Web; companies repeat the same sales pitch over and over again, sometimes leveraging what they perceive to be avenues read by geeks



  23. Links 15/5/2021: GCC 8.5, Fedora Community Revamp

    Links for the day



  24. Links 14/5/2021: FreeBSD on the Pine H6, Red Hat Hiring

    Links for the day



  25. Protecting Freenode is Protecting the Free Software Movement

    Freenode may seem like a negligible corner of the Internet, which media never bothers mentioning at all; but Freenode, which many have come to take for granted, is core infrastructure for many Free software projects and protecting the network is essential for the Free Software Movement



  26. EPO Justice

    Justice in Europe's second-largest institution, where the law itself is a second-class citizen



  27. IRC Proceedings: Thursday, May 13, 2021

    IRC logs for Thursday, May 13, 2021



  28. Understanding How Freenode (IRC) Works -- or Doesn't Work -- in 2021

    There is a conflict going on behind the scenes at Freenode, but there are also sincere and well-meaning attempts to undo the damage and get back to normal



  29. [Meme] Judges the Office Cannot Control Are Just Nazis With Weapons in Their Office...

    The EPO hasn’t been run by grown-ups for over ten years; Benoît Battistelli, António Campinos and their confidants cannot grasp the concept of law, just blind loyalty



  30. The EPO's War on Justice and Assault on the Law -- Part 5: Battistelli's “Swedish Chef”

    The EPO's 'courts' are controlled by the people whom they're supposed to judge on; this has been the case for at least half a decade


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