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Citrix Systems:Thank you for Sharing
Guest blogger: Larry Schutts, vice president of Stockwinners.com and a contributing editor for Theflyonthewall.com. Larry looks for stocks with technical and fundamental characteristics indicating gains in the next 30 days. However, price movements may be volatile. He includes a stop-loss price in each post. Consider selling a position should the stop-loss be violated.The degree to which an enterprise can be effective is a function of how easily and securely its employees can access and share stored information. There's an outfit in Fort Lauderdale, Florida that says it can facilitate those processes. Since its client list includes the entire Fortune 100, there is no reason to doubt the claim.
Citrix Systems (NASDAQ:CTXS) offers infrastructure software and services that enable enterprise-wide, on-demand access to information and applications. The company's software provides networked PCs and wireless devices with remote access to applications on a central server. Its programs also allow for load balancing, application development and resource management, in both Windows and UNIX environments. Citrix has more than 180,000 customers worldwide.
The firm surprised the Street last week, with Q4 EPS of 39 cents and revenues of $321 million. Analysts had been expecting
38 cents and $311.4 million. Management also guided Q1 EPS to 34-35
cents (35 cent consensus), Q1 revenues to $298-$308 million ($297.95M
consensus), FY07 EPS to $1.51-$1.54 ($1.52 consensus) and FY07 revenues
to $1.29-$1.31 billion ($1.28B consensus). Officers said the firm is
entering 2007 with the strongest pipeline it has ever had. Microsoft's
(NASDAQ:MSFT) Vista and Office 2007 are expected to be big catalysts.
The news boosted the shares into a bullish "flag" consolidation
pattern. Stocks frequently exit flags moving in the same direction they
were traveling when they entered them. In this case, that would be to
the upside. Note that the stock's 90-day moving average is currently
supporting the flag.
Brokers recommend the issue with six "strong buys," seven "buys" and twelve "holds." The CTXS Price to Book ratio (3.83), Price to Free Cash Flow ratio (20.76), Sales Growth rate (19.33%), Operating Margin (18.91%), Net Profit Margin (17.31%), Return on Assets (10.62%) and Return on Investment (14.30%) compare favorably with sector and S&P 500 averages.
The stock is one of those used to calculate the S&P 500 Index and the Nasdaq 100 Index. Institutional investors hold about 83% of the outstanding shares. Over the past 52-weeks, CTXS has traded between $26.10 and $45.50. A stop-loss of $27.40 looks good here. Note that the Citrix Systems Board of Directors has instituted a voluntary review of the company's historical stock option granting practices.
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iS THERE ANY REASON WHY THE POWERS THAT BE HAS DECIDED TO PRINT THESE ARTICLES ON LIGHT GREY INK. It is very difficult to read.
1/31/07 1:07 PM
Larry Schutts