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Strategies & Market Trends : Roger's 1997 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Robert Schling who wrote (7583)	11/27/1997 5:28:00 PM
From: Roger A. Babb	Read Replies (1) \| Respond to of 9285

Robert, almost all of CTXS revenue has come from Winframe sales. Last May CTXS sold the Winframe technology to Microsoft who will incorporate it into Windows NT 4.0 and sell it as Hydra. Note that Winframe is NT 3.51 technology, now obsolete, and the agreement prevents CTXS from making later versions. MSFT paid CTXS $75 million plus up to $100 million in royalties. Even though this was a one-time asset sale of the major CTXS asset, they are booking the money as quarterly earnings thus inflating results. Receiving $175 million for sale of an asset does not justify a $2 billion market cap in my book. But CTXS is a media darling and very good at hype, so don't be surprised if the price goes up before it dumps. On the other hand it could slide down without ever looking back. My suggestion is to take a small short position now and add to it if we go back towards $80.