1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
matsandalex
matsandalex
Articles (245) 

Why Jim Simons Owns CA Technologies

November 05, 2012 | About:

CA Technologies (NASDAQ:CA) has been battered in recent weeks as most big cap tech stocks have reported poor third quarter earnings. The stock is down 16% over the past eight weeks.

Is now a good time to load up on shares?

Jim Simons of Renaissance Technologies, one of the most successful hedge funds over the last decade, has a $67 million investment in CA shares.

The stock recently traded at $22.93 with a trailing price to earnings of 11.6 and a forward P/E of 8.51. CA sports a 4.4% dividend yield.

The stock has a market cap of $10.7 billion and total debt/equity ratio of 0.24. It should be noted that CA is not a stagnant tech company, with an estimated growth rate of 9.33% for the next five years.

The company has huge gross margins of 87% over the last five years and margins have never been below 85% even during the 2009 recession.

The company expects $1.4 billion of free cash flow which should protect the dividend and enable a share buyback.

Investors searching for a safe yield in a volatile equity environment may find CA Technologies appealing as a long-term investment.


Rating: 3.6/5 (7 votes)

Comments

Please leave your comment:


GuruFocus Mobile App


User Generated Screeners


pbarker46Shiller PE
DANGORDON05/06/2016
DANGORDON05/05/2016
DBrizancanadian moat guru hold3
DBrizancanadian moat guru hold2
DBrizancanadian moat guru hold
DBrizancanadian guru picks
akhandOld Faithful
carlecholsOld Faithful
herb.singhLow debt high ROIC with cheap

Select portfolio(s):

  • Loading...

Why you are interested?

Your selection and notes will be stored in your portfolio.

Login to add portfolio
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK