Did we listen to the same conference call?
I listened to the replay today, after reading about this in the Wall Street Journal. I wanted to hear what the company's side was. I wanted to see if I felt this was an over-reaction, and a good opportunity. (Having invested in CTXS near the bottom after the Microsoft announcement that sent them plunging, I know how lucrative these bedraggled cats can be!)
The call was a big eerie, in a couple of ways.
They started out with a strong statement to the effect that everything was fine and proper, with their accountant at their side. Score w points.
Actually, they started out with a question from the firm that came out with a buy rec today. Their statement was in response to that question.
After their answer, there was a string of perhaps a dozen "no question" questions. Apparently, these were people intending to ask the same question. :)
Some people asked about some fine points about accounting, most of which were deflected rather than dealt-with head-on. It was annoying the way they had to be pinned-down on positive cash flow.
Then, several attempts by individual investors to get them to respond directly to the rumors. I was again annoyed by an apparent unwillingness to deal with this. One investor suggested that they track-down and prosecute whoever was responsible. I found the response, which indicated that they really weren't interested in pursuing that - disturbing.
I also didn't find the answers on insider selling to be very satisfying.
I came away uncomfortable enough to just leave the stock as a mystery that will eventually be resolved one way or the other, but not with my money riding on the outcome one way or the other. :)
Just a feeling, but I wouldn't be surprised to hear another shoe drop. IF that happens, I would go short AFTER any negative, confirming announcement from the company. It's NOT too late to go short at that point - see FPAM, for example. :)
I certainly wouldn't go short here, but I don't feel comfortable going long, either, unless it were for a day-trading position, and I do mean DAY trading. (I wouldn't want the over-night exposure.) |
