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Friday, 11/03/2006 7:25:27 PM

Friday, November 03, 2006 7:25:27 PM

Post# of 26
Please read this to be informed!

From a prior article:

Perhaps most surprising is Microsoft's commitment to distribute 70,000 coupons for SUSE Linux Enterprise 10 subscriptions to its customers that want to use Linux in Windows environments. As part of the deal, Microsoft and Novell also pledged to align their sales and marketing engines to promote use of Windows and SUSE Linux together.

More research! -Lets compare Red hat and Novell- Red hat is Novell’s competitor, and has been doing a little better in recent months, but what does the Partnership with Microsoft mean?

Let’s look at the Earnings reports and Fundamentals please.

Red Hat-
Stock price -16.67
Annual Sales- 335 million
P/E- 43.80

Novell-
Stock Price -6.66
Annual Sales- 1.043 Billion
P/E- Around 40.

What did the partnership do-?
The Partnership gave Novell a step up on Red Hat, which means increased future growth, which means more Annuals Sales and we should have a higher P/E.

So what does the fundamentals say- WE ARE HEADING HIGHER