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[Jeremy Portzer <jeremyp AT pobox.com>]

On Wed, 2003-11-05 at 13:35, Steven Champeon wrote:
> OK, so Novell just bought SuSE for $210 million. I see this as good for
> the Linux community, a recognition that Linux is really being taken
> seriously and will be even more so in the future. 
> 
> So why did RHAT take an 8% dive today and even larger dive yesterday?


Here's an analysis from another list you may find interesting:

===============

Re: not OS related-red hat stock

________________________________________________________________________
      * From: "Jaap A. Haitsma" <jaap haitsma org>
      * To: fedora-test-list redhat com
      * Subject: Re: not OS related-red hat stock
      * Date: Wed, 05 Nov 2003 18:50:24 +0100

________________________________________________________________________
The stock is probably dropping because of the news that Novell acquired
SuSE. RedHat is the market leader for Linux investors at the moment, but
investors think Novell can become a very serious competitor now.
The RH stock increased also considerably last month it went from around
8$ to 15$.

Furthermore the price earnings ratio (i.e. the total worth of all stocks
divided by the profit) of RedHat is rather high. It's around 500 now
while price earning ratios of normal technology companies are around 20.

The stock price of RHAT is relatively high because investors think in
the future RHAT can make a lot of profit, because Linux will rule the
world :-). It looked like RedHat would take most of the profit in the
Linux business, but now they think RedHat will need to give up a piece
of pie to Novell.

Just my thoughts,

Jaap

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