Thanks James!
You are exactly right. The pseudobulb is growing new roots...1/2 inch long(right out the top of the pot). I had intended to repot as this plant came to me from a nursery but when it sheathed - thought better to wait. Thanks for your advise and will repot to new medium and bigger pot(very crowded now) Does this variety need winter rest? Thanks a million...you were spot on!