Re: not OS related-red hat stock

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.

But then again it's the stock market. If SCO does something stupid next 
week (and they do this every week, but for some strange reason you don't 
see this in the stock price) the RHAT stock might soar to 25$

Just my thoughts,

Jaap


Gus Vigo wrote:
> hi folks...
> 
> anyone been looking at the red hat stock lately?
> it's dropped over a dollar each day the past 3 days...any thoughts on this?
> 
> maybe the people are dumping redhat back?
> 
> just curious...
> 
> 
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