The CTXS stock is dropping faster than a rock with DH leaving abruptly. Is this going to be the moment of reckoning for Elliott to lose all the gains they made earlier ?
Maybe their karma is coming back to bite them with them taking this company into the ground ?
I still remember Elliott made huge layoffs and fired all the security teams in 2017, and guess what we had ? A massive security breach :)
You would do an interim CEO either because the board lost all confidence on DH or DH refuses to do the job anymore. I’m guessing it’s the first. I also assume DH staying as an advisor is a charade so the company can justify some of the payoff.
I don't totally understand this whole premise of having an Interim CEO, why would we ask the current CEO to go, before we find a new one if we really have to replace him.
I suspect the turmoil and churn is purposely caused to short the stock.
This is why an underperforming company should not award an interim CEO with unjustified amounts of short term RSUs. Vesting RSUs simply reward mediocrity amidst a sharp shareholder value decline. Plus will also pressure the stock downward when immediately sold upon vesting for tax accounting.
Citrix stock is down 15% since the CEO transition announcement in just 3+ trading days.
Stock collapses from $160 to $90 and the interim CEO still has a deep in the money 200,000 RSU share grant per the 8K SEC filing. 200,000 shares at $95 = $19M and $80 still equals $16M.
Putting this into perspecitve, the RSU grant is nearly 0.2% (or 1/500th) of the entire float of Citrix stock as compensation for twelve months - or less time if a permanent CEO is named in the next twelve months.
There is high potential for massive reward with terrible shareholder performance. Citrix stock performance is in the bottom 1% of S&P 500 since March, 2020 yet vested RSUs have been worth tens of millions to the current and outgoing members of the executive team.
Elliott + other hedge funds can also short shares in the short term and manipulate the market price and float without greatly damaging the large exec RSU share compensation.
If exec comp was based largely on stock options there could potentially be more exec comp upside as the executive team is only rewarded for a job well done when the shareholders also benefit.
Do we know if Elliott is shorting our stock ? I have a strange feeling they precipitated this crisis and shorting the stock ?
Buy the dip!!! Oh wait wrong stock.
The stock is going keep going down due to the lack of guidance and strategy. For the last 5 years the company has not grown much and is stagnant. So all the chickens are coming home to roost now.
Elliott will not be able to do much at this point.
Stock is collapsing with no target support levels. Sh-trix could easily go sub $50 by year end. Sh-trix soon to be a member of the circuit city, blockbuster, Sears relics of bygone years.
How much are your RSUs worth then and is it worth it to go through the humiliation and trauma.
Goes down when the market goes up
Goes down when the market goes down
good for buyer
My take, CTXS is going down the Yahoo! Or Blockbusters path where the valuation is going to continue to drop for lack of innovation.
It’s better to find a buyer at 10B and get whatever is possible. May be stock getting down to 80 will help find one. Else it’s unattractive for any willing buyer..
Short term trim down the fat ugly incompetent leadership layer. Big savings there, and most are damaging the company more than anything else.
CTXS likely looking at $80 after Q3 announcement. Whether it’s good for buyer or not, its surely bad for everyone else. Employees will also be compensated based on the worth of stock they own, if it goes private or if some other company buys it.
The entire market is down. And the stock crashing is, perversely, a good thing if the goal is to go private. Sucks for the shareholders, but not for the buyer. So maybe not karma. It also appears Elliott didn’t straight out buy 10% of shares - bought some and used other proxy ownership vehicles to claim a minority stake.
Lol, a very simplistic view of how Eliot operates. No karma-biting here. Opportunity for Eliot to seize even more control, push for cost reductions as a way to get to more profitability, and then cash out.
You think Eliot is crying because the stock dropped in a week? They are probably chuckling gleefully.