Joshua Byrini's Market View
Byrini's obeservations should not be considered recommendations, advice or suggestions to buy, sell or hold securities, commodities, commodity contracts, options, futures, warrants, insurance contracts, real estate, gemstones, art work or derivatives, as he is neither a registered securities, commodities or real estate broker, diamond merchant, art dealer, or investment advisor. These observations are for informational purposes only. In other words, you are on your own chief.Monday, October 24, 2005
Computer Associates, Emerging from the Fog
Harold Godfrey, writing on the changing guard at the Fed, gives the pump to Computer Associates, which follows the story in Smart Money concerning options expensing. Add his boost to the idea that it will not face a hit to its earnings, and maybe it's something to look watch (it's call options, that is). After all, you couldn't buy this much positive press...(well, maybe).
Godfrey writes: "The Barron's feature, "A Rare Tech Keeper," noted Computer Associates has bounced back nicely from its accounting scandal and the software giant is not generating loads of cash. Its shares rose 0.95, or 3.54%, to close at 27.75.
Computer Associates has made peace with authorities over its account scandal, adopted the most conservative accounting practices in the industry and over the past 18 months replaced every member of upper management.
The company generates impressive amounts of cash year in and year out, producing more than $1 billion in operating cash flow in each of the last eight years. It has used the cash to buy back stock, increase the dividends and examining promising new markets."
Some accomplished investors who have been buying the stock lately believe it could climb 30% in the next 18 months.
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