Forum for Shareholders of CA, Inc.

Forum Home Page

Pending Status

Forum activities relating to CA, Inc. are temporarily suspended pending release of a court-appointed Examiner's report on management compliance with a Deferred Prosecution Agreement.

CA Forum Home Page

CA Research Reference

Market Scan
Computer Associates May Execute Better In Coming Year
Maya Roney, 11.15.05, 11:33 AM ET

Goldman Sachs research analyst Sarah Friar reiterated an "in-line" rating on Computer Associates International (nyse:
CA - news - people ) after attending the first day of "CA World," the first user conference for the company's new management team.

"Computer Associates stock could benefit from low investor expectations if the company is able to deliver improving execution in the coming year," said Friar. "However, slow organic growth, a complex financial model, and the still large amount of work to be done to clean up the mistakes of the past will likely continue to result in a discounted valuation for the stock, irrespective of what our valuation work suggests."

At the conference yesterday, Computer Associates management reiterated a more-focused product strategy around security, systems management, storage, and business service optimization. Friar said conversations with customers revealed a high level of interest in a Computer Associates turnaround but also "a healthy dose of skepticism" along the lines of "we've heard this before."

"We believe that management's vision is sound, but a discount valuation is justified based on flattish organic growth and a long way to go to repair marketplace perception," said Friar.


2005 Inc.


The Forum is open to all Computer Associates ("CA") shareholders, whether institutional or individual, and to any fiduciaries or professionals concerned with their investment decisions.  Its purpose is to provide shareholders with access to information and a free exchange of views on issues relating to their evaluations of alternatives, as described in the Forum Summary.

There is no charge for participation.  As stated in the Conditions of Participation, participants are expected to make independent use of information obtained through the Forum, subject to the privacy rights of other participants.  It is a Forum rule that participants will not be identified or quoted without their explicit permission.

Inquiries and requests to be included in the Forum's distribution list may be addressed to

The material presented on this web site is published by Gary Lutin, as chairman of the Shareholder Forum.