GotoMeeting is clearly one of the leaders in the online meeting world. Citrix Systems (CTXS) is the owner of GotoMeeting and a host of other less known software solutions. Yesterday Elliott Management announced a 7.1% stake with a long letter to management discussing methods of increasing shareholder value. The stock popped on the news, but more importantly, it looks to be breaking out of a 4 year down trend on the news. The chart has been going higher since January 2015 and the weekly chart shows an inflection point on the chart. Here is Citrix (CTXS).
I like the SCTR jumping above 75 for the second time after the SCTR surge in the third quarter of 2014. The rising lows from January 2014 are helpful. The divergence on the MACD between the third quarter of 2013 and 2014 add fuel to the fact that something is about to change. The break above a 4 year down trend line with an SCTR surge above 75 is a combination ticket I like. The technicals have been suggesting the stock is ready to go higher and the activists might be sensing that CTRX has a lot of tools to drive the stock to new heights. Either way, the technicals look good and the fundamental story compliments that outlook. With momentum rising, this looks interesting.
Good trading,
Greg Schnell, CMT
