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

To: Biomaven who wrote (5425)	4/7/1998 10:16:00 PM
From: Roger A. Babb	Read Replies (1) \| Respond to of 9068

Peter, I did read the 10k in great detail as I do for all my investments. Here is the same quote from the 10k: << Common Stock The Company has reserved for future issuance 15,185,167 shares of Common Stock for the exercise of stock options outstanding or available for grant. >> The difference between the proxy numbers and the 10k numbers is that the 10k has a record date of 12/31/97 and the proxy has a record date of 3/23/98, there were additional options issued between the two dates. I agree that the wording in the 10k is different, saying "outstanding or available for grant", but I also interpret that to mean that these options are an obligation of the company and will eventually show up in the share total. (You might also note in the 10k that they took the opportunity of last Spring's price dip to reprice the options way down) I am familier with the Treasury Stock Method, FAS 123 and FAS 128. But the bottom line for any investor is what percentage of the company does he own and thus what percentage of the earnings does he own. You could not purchase 100% of CTXS by buying 41 million shares. To purchase the company you would have to buy the 41 million outstanding shares plus buy out the 16 million option shares, thus the ownership of the future earnings is shared by both the outstanding shares and the options which are already issued or the company is obligated to issue. Also I would ask, if they are not against the 60 million limit, why the rush to authorize 90 million more shares? If I were a shareholder, I would also question giving management the authority to issue the 90 million new shares for any purpose without further shareholder approval. But what do I know, I am just an engineer trading a few odd lots and don't have the training to understand these complicated financials.

To: Biomaven who wrote (5425)	4/7/1998 10:26:00 PM
From: Al Chechatka	Read Replies (2) \| Respond to of 9068

Are the Options in the 1989 and 1995 plans split adjusted? From the 1989 plan, there since has been 3 splits. A 2 for 3 (before the IPO) 2 for 1 (in 1997) and 3 for 2 (just in Feb '98). That would make the 1 million number would actually be 2 million. Does anybody know which is correct? Roger, why do you think CTXS is going to drop like a rocket? Almost all your shorts (that you called correctly, ie VIAS) you had months of downward movement. Even with CTXS last year from 40 to 30 you had a few days before it tanked. Last year, I know you were in on the 50 to 40, but I think you covered and missed the big money down. I'dd rather get in on a short when it is already getting downward pressure. I agree with some of your shorts, but definately not CTXS. Sometimes it gets ahead of itself and you can make a good buck trading it (long and short). It is a great trading stock and it has been a great buy and hold stock from last Feb. I just do not see it as a Short and hold. If you are worried about earnings this quarter because of Winframe sales slowing, short an hour before the Close on Monday April 20th? If there is no UPTICK (which there will be) buy the puts. You can even do them until 4:02PM. You've explained yourself why you're short, but not why it will tank in a day. IMO, your risk reward is not favorable to you. Al C.