What's Next For CA Technologies

Reading between the lines in the letter from Taconic Capital to CA management, Taconic is requesting the following:

  1. They want CA to aggressively repurchase shares(optimize capital structure)

  2. Stop doing acquisitions(increase profit margins)

  3. Change the management compensation structure to align with the first two goals.

CA is either going to implement these changes or we are likely to see more action from Taconic, such as requesting board seats. I believe these changes are precisely what need to be done. If this is properly executed CA shares should rise above $30.

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