Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Citrix Systems (CTXS) -- Ignore unavailable to you. Want to Upgrade?

To: Peter Dierks who wrote (9030)	6/9/2005 10:52:18 PM
From: SI Dave	Respond to of 9068

>>Why did the stock start tanking after announcing the NetScaler deal? Because it's EPS dilutive to the next 3-4 quarters as is usually the case when they make an acquisition. Even with them paying half in cash it's still dilutive, which suggests they paid a handsome premium. The same was true for ExpertCity acquisition last year. >>What is Citrix's track record of success with purchased products? Fair. Some have done well, others have not faired as well. Everything they buy gets melded into the existing product stream with big write-offs for acquired R&D, so it's difficult to measure success on a per-acquisition basis. >> It is the first I am aware of. Why would they buy a hardware company if the need for their software was infinite From what I can gather, it's all about their proprietary software that's in the hardware. >>The list of Citrix partners is thinning out. What kind of partners? They have one of the largest reseller and system integrator channels in existence, and most of the major application houses are marketing partners. It's hard to grow a list that everyone is already on, and a big reason they have to keep expanding their core line is that everyone is already a customer. It sounds like you have a good strategy. CTXS has become a stock for investors who like to trade the channel; buy when it moves into the teens, sell when it looks like its about to break out of it's trading rage.