CA Exit at High Valuation
CA Technologies, together with its subsidiaries, provides enterprise information technology (IT) management software and solutions in the United States and internationally. The company operates in three segments: Mainframe Solutions, Enterprise Solutions, and Services.
[PostStockWidget stock_valuation="" pricetype="live" static_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'CA'" symbolprices="84" div_align="right"]
We highlighted a low valuation in CA on November 1st at $24.00 with an initial high valuation target at $31.00, we then reduced the target to $28 because the earnings outlook weakened.
Over the next 2 years, the EPS is expected to vacillate between $2.55 and $2.95 per share. In light of the above, we recommend exiting because the target has been reached. We will look to recycle this capital into other low valuation opportunities.
Including accumulated dividends of $.75, the Total Return for this trade reached 28.7%.
HIGH VALUATION IN CA CORP AT $USD 28.00 (CA-US, $USD 29.00)
