Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Growth Is The Question, Answer, Problem, And Solution For CA, Inc.

The story remains frustratingly consistent at CA, Inc. (NASDAQ:CA). In a software investing world, where share price performance is often correlated pretty closely with revenue growth and margins, CA scores strongly on the second metric, but consistently poorly on the first. The basic investment thesis at CA hasn't really changed much in several years now - the mainframe business is an excellent source of high-margin revenue and cash flow, but the company just cannot seem to generate enough growth in the Enterprise business. Talking about improved go-to-market strategies and more consistent sales execution hits the right buzzwords for the sell-side community, but it's hard to say that the implication in CA's price of little-to-no growth unfairly maligns the...

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