5 years ago... CA shares plunge over 30 per cent

NEWS 22.07.98 Computer Associates shares fell by over 30 per cent on Wall Street today, after the company warned that Asian turmoil and a corporate tendency to spend on the Y2K problem rather than on software may have an adverse short-term effect on business. CA's share price reached $38.25, down from the previous day's close of $57. The fall occurred despite positive Q1 results, which beat analyst estimates by 1 cent a share. Charles Wang, chief executive of CA, remained optimistic, claiming it was a "very exciting quarter". The company suffered a one-off charge of $675m after tax to stock issuance under the 1995 key Employee Stock Ownership Plan. 22.07.03 The Y2K problem - that's a blast from the past which is likely to feature heavily in these '5 years ago...' pieces. It was a phenomenon which had a profound effect on the tech economy, both good and bad, but it was nothing compared to what came over the next two years. Share prices tell their own story. At the time of writing CA shares are around $22.25 - putting the above crash into perspective. Falls before the dot-com boom and bust phenomenon were as nothing to the bloodshed which followed - in mid-2001, companies would have killed for share prices that could fall 30 per cent and still be up around the $38 mark. CA shares have been on a rapid incline over the past 12 months. During mid-2002 they were down below $10. The company has effectively hauled itself out of the mire and appears to be heading in the right direction. The past week has seen a great deal of news come out of CA in the wake of its annual CA World conference in Las Vegas. Catch up with the goings-on, here: CA sets record straight on 'no more acquisitions' stance
CA courts 'Big Brother' with all-seeing software
CA makes security a 'management issue'
CA boss gets tough on rivals