Gavekal Capital: Microsoft and CA Inc both beat 3Q expectations

Friday, October 25, 2013

Microsoft and CA Inc both beat 3Q expectations

In our quarterly call yesterday, "Investing in a Post QE World" (here is a link to a video of the presentation), we highlighted the systems software industry as one where value is still compelling and many of the companies in that industry are very shareholder friendly. In particular, we highlighted Microsoft and CA Inc. Well as if on cue (we wished all of our ideas worked so neatly!), Microsoft and CA Inc both reported earnings that beat analyst expectations. Microsoft reported EPS of $0.62 while analysts were expecting it to come in around $0.54. Meanwhile, CA Inc reported EPS of $0.53 versus expectations of $0.41. Microsoft is up about 5.5% so far today and CA Inc is up nearly 4%.

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
We offer the Gavekal Knowledge Leaders Strategy in multiple products for global investors. For more information about our product offerings please visit http://www.gavekalcapital.com.
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