As a long time trader and lurker of CTXS all I can say is chill out everyone. Pull up a weekly or monthly chart of CTXS and it has done remarkably well over the years. The ramp up last fall was an anomoly that was far from rational. Anyone that thinks that CTXS deserved to quadriple on thier present earnings growth is guilty of falling in love with a stock. Common sense said to get while the getting is good. The most recent bounce was nothing more than a dead cat bounce and now CTXS should return back into it's longer term channel of trading between the mid to high 30s and the high 40s at this time in the usual rising ever increasing price to earnings growth rate. Even after today's drop, CTXS still is mildly over priced with a PEG ratio of 1.1, a trailing PE of 62, a forward PE of over 40, a price book of 11 and sporting a price sales of 17. I would say it is still not cheap. Still this is one of the best trading stocks around, just don't fool yourself into thinking your making a fundamentaly sound buy at a bargain price.
With the uncertainty of the MSFT news, the higher interest rate environment and the possibilities of inflation, stagflation or recession, everyone should be happy it isn't down around 10 and the rest of the market isn't worse off. Why should management try to console people who over paid for a good stock. I'll be a buyer again when it get under a PEG of 1 and then add more if it continues down to real cheap values for longer term holding, until then, it is a trading vehicle.
If you really have faith in CTXS, buy more when the drop is done and hold on, if not, then trade it when the chart says to buy but don't whine.
Good Luck,
Lee |
