The drop is due to (old) worry from big bully MSFT.
"Check Point (NASDAQ:CHKPF) off on Microsoft competition
Reuters, Thursday, April 23, 1998 at 11:42
NEW YORK, April 23 (Reuters) - Israel's Check Point
Software Technologies Ltd. (NASDAQ:CHKPF) dropped in heavy trade
Thursday after Microsoft Corp. (NASDAQ:MSFT) warned it would compete
with the network security company.
Check Point fell 5-7/8, or 14.3 percent, to 35-1/8 in
mid-morning. Volume was four times normal daily levels, and the
shares were among the most active on the Nasdaq exchange.
Traders and analysts said Check Point was hurt by comments
from Steve Ballmer, Microsoft's executive vice president, that
the software giant was ready to compete with Check Point in the
network security software market.
"That's always been the worry with Check Point -- that one
of the big boys would enter the market," a trader said.
Israel's Globes business newspaper quoted Ballmer as
telling an audience in Tel Aviv that Microsoft was starting to
develop products that would soon compete with Check Point.
He said Check Point should coordinate development of its
products with Microsoft if it wanted to avoid direct
competition.
"If they want to cooperate, to create products for our
platforms, we will be happy to tell them our plans," Globes
quoted Ballmer as saying in its Tuesday edition.
"If they wish to compete, they are invited to compete with
us."
The story was available on the newspaper's Internet Web
site.
Copyright 1998, Reuters News Service
" |
