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

To: Roger A. Babb who wrote (5436)	4/8/1998 11:23:00 AM
From: Al Chechatka	Read Replies (1) \| Respond to of 9068

All companies reprice options. Do not blame CTXS management for repricing options because all companies do. As I mentioned the SEC is looking at stopping this practice, but until they do, ANY company can reprice options. I agree that the people long the stock before a huge dip in any company, not just CTXS, get the shaft when companies reprice options. The SEC is looking at not allowing repricing and when companies issue new options, options will have to be exercised in the order received. So if the stock was at 50 and the company issues 1000 Options to an employee at 50 on Jan 25. Let say the stock dips to 25 and the company wants to issue more options at that price. They issue 500 more shares to that employee at 25 on April 25th. If the new rules take effect, the employee has to exercise the $50 options first. So the stock would have to move up big for the employee to benefit. It is like a long stockholder dollar cost averaging, but with the option holder, there still is no risk because he/she doesn't have to exercise the option. I think this is more fair to the stockholder. As far as the CTXS dip last year. I think it could have been totally avoided by announcing first they were in negotiations with MSFT. All employees are locked out from buying or selling the stock while negotiations are going on. If the negotiations broke down w/o any deal, Citrix THEN announces MSFT intentions to build there own "winframe." IMO, CTXS would not have been in violation of any SEC rules. I think that created a huge buying opportunity for anyone who really knew CTXS. I bought some at the lows of last year so I was rewarded by this dip, but I know many people were hurt and it could, IMO, have been avoided. All water under the bridge. And if CTXS can create great products, make great profits, they too should benefit and I am glad that they were able to get their options repriced. Al C.