Linux computing by Novell Inc.(NOVL:Nasdaq)

The business software maker Novell, Inc. develops, sells and installs software that is positioned in the operating systems and infrastructure software layers of the information technology (IT) industry.
The Company develops and delivers Linux operating system software for a range of computers from desktops to servers. In addition, it provides a portfolio of integrated IT management software for systems, identity and security management for both Linux and mixed-platform environments.
The Company operates in two business segments:
Security, Management and Operating Platforms business unit segment (SMOP) and Collaboration Solutions (CS). Novell, Inc. delivers Linux and related solutions for the enterprise.
The SUSE Linux Enterprise platform underpins all of its products. Within the Company's CS business unit segment, it provides collaboration solutions that provide the infrastructure, services, and tools customers require to collaborate across a myriad of devices.
Novell Inc.headquarter is at 404 Wyman Street, Waltham in Massachusetts,United States of America.
TAKE-OVER BID
Last November 22,the company filed an annoucement that it had agreed to be acquired by the Attachmate Corporation for $2.2 billion in cash.
Novell also plans to sell some intellectual property assets like patents for $450 million to a consortium of technology companies led by Microsoft. Attachmate’s takeover is contingent on the successful closing of that sale.
Novell and Microsoft did not disclose which patents were sold or the names of the other companies in the coalition.
Novell, a company that specializes in enterprise infrastructure software, will add to Attachmate’s portfolio of software brands, which includes its namesake line and NetIQ, which it acquired in 2006.
The Merger and Acquisition offer:
The offer, at $6.10 a share.Somewhere on March 2, one of the company’s major shareholders, the hedge fund Elliott Associates, submitted a takeover offer for $5.75 a share.
Novell’s board swiftly rejected the bid as “inadequate” and the matter was apparently shelved.
Shareholder Blocking the Take-over:-(Novell Deal Case--26 Nov 2010)
An investor in NOVL shares filed a lawsuit alleging breaches of fiduciary duties by Novell directors arising out of their attempt to sell Novell, Inc. too cheaply via an unfair process to Attachmate Corp.
According to the complaint the plaintiff alleges that the defendants breached their fiduciary duties owed to Novell, Inc. (NASDAQ:NOVL) investors in connection with the proposed takeover.
The plaintiff alleges that the offered price of $6.10 is unfair to NOVL stockholders and amounts to a mere 9% premium over the Company’s stock price on the day prior to the announcement of the proposed acquisition, and is a 6.3% discount to the level at which Novell traded just two months ago. NOVL shares in fact traded on as early as Oct 14 at $6.14 per share, and during September as high as $6.50 per share. NOVL shares traded in 2008 as high as $7.45 per share, during 2007 at over $8 per share and during 2006 at almost $10 per share. In addition, so the plaintiff the offered price is substantially lower than the target prices maintained by a number of research analysts at the time of the proposed acquisition. As recently as August 27, 2010 an analyst set a price target of $7.50 per share for Novell stock. Further the plaintiff also alleges that the defendants breached their fiduciary duties by agreeing to preclusive deal protection devices, such as a no-solicitation, matching rights, and a $60million termination fee provision.
Novell Inc. is listed in the Nasdaq under Technology/Software.
The market capitalisation is 2.1 billion with an outstanding shares of 351.6m
No dividend is being paid.
The P.E ratio:--5.7x while the Earnings per share is USD1.06.
On December 2, 2010, NOVL announced quarterly earnings of $0.07 per share for 2010Q4, beating the consensus estimate of $0.07.
The Annual Financial Year is December 14.
Taking position.
The closing price on 3 Feb 2011 is USD5.97 with a hefty turnover of 22,410,200 shares changing hands.
November candlestick is a dragonfly doji above the 52 weeks MAV support line.It is very bullish.

It has been showing an attempted breakout from the current price near the Bull pivot resistance but has failed for the third time.

The worst scenerio is just a small pullback to the November's half section of the lower shadow.In such an instances the risk is very low and any pullback below the Bull Pivot resistance is a recommended buy.

Tracking the Dow,Thursday,3/2/11.(10 market days to index futures expiry)
Nikkei Futures 5 market days to expiry.
9:30am:--Bearish 20.0 points gap-down.The Egyptian tension has an early bearing.Bearish harami follows.

10:30am:--An early session low,bullish engulfing prevented further fall.The Middle East unrest tension might spill to neighbour.

11:30am:--Retrace to MAV resistance line.Bulls in control.Weekly jobless claims fell 42,000 to 415,000.

12:30noon:--Consolidation time.Index now hoovering at session bull pivot resistance.

1:30pm:--A second attempt to thrust the morning high.Consumer stocks are in play.

2:30pm:--A triple attempt for the breakout.Around this hour,there always seems to have Federal news.Ben says forget about inflation,quantitative easing policy is still on going.

3:30pm:--Bullish spike up after digesting the Federal Reserve news.

4:00pm:--Profit taking at the close but still holding near the high.

This is going to be a continuous rally in a pre-election scenerio even though it is still far ahead.After that only will be a real crash.

Thursday's candlestick has hit the week MAV support line and left it aside forming another bullish breakout.

The speech by the Fed Chairman suggests that "a self-sustaining recovery in consumer and business spending may be taking hold" and said he expects the economy to grow at a faster pace in 2011. Bernanke minimized inflation pressures, which he said, in addition to a still-high unemployment rate, continues to justify the Fed's accommodative monetary policy and asset

He also refuted claims that the Fed's easy monetary policy was responsible for food inflation in emerging markets. purchase program.