Tuesday, January 10, 2012

Investopedia: How The Street May Care About CA Again

Trying to sell a cheap low-growth tech stock is often like trying to sell used electronics; sure, it's cheap relative to the value you can get out of it, but nobody is going to want it anyway. This is not a new problem for CA Technologies (NYSE:CA). While these shares do indeed look too cheap on even a conservative modeling basis, it's going to take leveraging the new mainframe cycle and showing growth in cloud computing, to get anybody to care.

The Good  
CA Technologies has built itself into what is, in many cases, an indispensable part of the IT environment. This vendor-neutral enterprise and mainframe software vendor sells so many different products that it is not easy to talk about what they do in succinct terms. Nevertheless, here's a shot: CA Technologies helps make sure that an IT system can run multiple systems and applications, while maintaining performance and security. CA products also help monitor how well the system is working, identify problem areas and evaluate the performance trade-offs of new projects. (For related reading, see The Dotcom Crash.)

Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2012/Heres-How-The-Street-May-Care-About-CA-Again-CA-BMC-IBM-CPWR0110.aspx

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