If they don't make bold moves in the next 12 months, they'll move into irrelevance. |
Novell has the necessary resources to be a much more profitable enterprise but it currently lacks the vision, strategy and execution to produce respectable returns. |
Our price objective is based on a 40 times PE (price/earnings) applied to our new 2005 earnings per share estimate of $1.35. |
Red Hat is one of the best-positioned stocks in software and should be able to further capitalize on the growing demand for open source. |
The acquisition has effectively expanded Red Hat's market opportunity in one of the fastest growing sectors of software. |
They're positioning on-demand as a niche offer. That's smart. If I was SAP, the last thing I'd do is validate on-demand as the biggest trend in the software industry. They'd be crazy to do that. |