Roger's 1997 Short Picks Message Board

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Strategies & Market Trends : Roger's 1997 Short Picks

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To: Ajay who wrote (5875)	10/17/1997 5:22:00 PM
From: Roger A. Babb	of 9285

Ajay, CTXS earnings are Monday after the market I think. I expect good earnings but they are inflated by the one-time sale of technology to MSFT which I claim are not earnings but are an asset sale. Would not surprise me to see CTXS go up on Monday and Tuesday and then fall after folks have time to dissect the 10q. This is what happened last quarter. Let's look at a simple comparison. You are a bank loan officer and a taxi driver comes to make a home mortgage which he will pay back over 20 years. You ask him about his earnings and he says he earns $1000 per week driving his taxi. Probably you make the loan. Now comes a second taxi driver for the same loan. You ask him about his earnings. He says, oh I make twice as much as my buddy. I sold my taxi for $10,000 and will receive it in 5 payments of $2000 per week, so my earnings are $2000 per week. Do you make him a 20 year loan? Don't think so, you count the car sale as a $10,000 asset and figure he is now unemployed until he finds another job or uses the 10k to start a new business. Citrix is in the same position except they get to use the "taxi" a few more months before MSFT takes over with NT 5.0.

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