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COMPUTER ASSOCIATES (CA) 45 3/8 +5/8: It took a while to get it done, but DOJ finally approved Computer Associates' $3.5 bln acquisition of Platinum Technology (PLAT)... PLAT should be a nice fit with CA as two companies have very little overlap... Additionally, PLAT's highly skilled technical staff will help bolster CA's recently formed Global Professional Services (GPS) organization... Company noted recently that its services business will grow revenues in Q4 by 121% to $93 mln... CA's client/server business also growing nicely due to acceptance of Unicenter TNG family of products... Client/Server revenues, which according to management grew at a 29% rate last quarter, now total roughly 50% of total revenues... CA due to report Q4 numbers tomorrow... Consensus calls for gain of $0.81 vs. $0.75 in the year ago period... Should note that company preannounced better than expected results a few weeks ago, so there shouldn't be much in the way of surprises in the report... Nevertheless, solid top and bottom line growth, combined with positive synergies from merger with PLAT and discounted valuations relative to market, make CA a compelling investment candidate for long-term, growth-oriented investors... CA expected to earn $2.30 in FY99 and $2.59 in FY00... Technically, stock has been in a holding patter for better part of last 10 months... Close above 50 would flash strong buy signal, with secondary target in the 60-62 area.
from briefing.com
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