A diary of the thought process behind my investment decisions
Added To CA Inc.
I have been adding to my position in CA Inc.. My highest success rate has been in cheap companies that have suddenly become aggressive about buying back shares. CA Inc. trades at less than 8 times forward free cash flow to enterprise value, so it certainly meets the cheap definition. They have been using free cash flow the past few years to pay down debt and now have $1.5 billion in net cash. They are now moving to repurchase shares more aggressively.