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

To: Redman who wrote (6233)	3/22/1999 3:41:00 PM
From: Redman	Read Replies (3) \| Respond to of 9068

Down almost 5 points on a fair amount of volume. This clearly shows that the market does not like uncertainty. One can only guess why they need so much cash and shares authorized. red

To: Redman who wrote (6233)	3/23/1999 12:05:00 AM
From: Andy H	Read Replies (1) \| Respond to of 9068

I highly doubt anything big is up in a positive way. If the convertible offering was a registered deal, we would know for sure whether any acquisitions were contemplated, because the SEC absolutely requires that disclosure and will ask during the comment period. In a private placement, any competent lawyer would put that in a disclosure document, if applicable, but we don't have access to that document. If a specific company was being targeted, that would have to be disclosed to the investors. The increase in the authorized shares is a no brainer-you do that whenever you get near a limit that could be exceeded in the near future-remember you only get one "free" crack a year to increase the shares authorized. Using a special meeting to do it is a waste of money that can be avoided by doing it at the annual meeting. With the convertible offering and options, CTXS is well over 100 mm already, so there is no room for even a 3-2 split down the road without the increase. I hate to say it, but sometimes these convertible seem to occur before problems arise as the co. wants to raise money before hitting a rough spot at a good price (see MRVC for a worst case scenario-convertibles issued with stock in 20s last year, conversion price of $27 if I recall, price plummeted to $6 last August). No idea if that is applicable here, but sometimes the bankers whisper in the mgts' ear about how nice it would be to raise cheap money for a rainy day. If something good is coming up, it will be reflected in the price long before the announcement. No evidence of that yet! Another factor that COULD be adversely affected the price is an arbitrage scheme used in connection with these convertibles involving short selling against the convertibles. I have heard of this practice but have not witnessed it myself.