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Technology Stocks : Check Point Software (CHKP)
CHKP 180.91+2.6%Feb 6 9:30 AM EST

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To: jkb who wrote (2276)5/2/1998 1:43:00 AM
From: Psycho Killer  Read Replies (1) of 7150
 
Thanks for the excellent posts. This has been an enjoyable thread today, with a lot of good thinking going on.

If the fundamental story is strong now, do you think management should step up now (with a press release, for example) to stop this bleeding? If so, what should management say?

I'm of two minds on this. On the one hand, there are some issues about "quality" of earnings that have been raised publicly, and the company ought to know better than anyone if this is a bum rap. Why not address these issues -- which by now have been pretty well defined -- directly?

On the other hand, company has to be extremely careful what it says. Statements of certain kinds might move the market upward -- meaning that a later drop could lead to class action securities suits asserting that the positive statements that drove the price up were false or misleading. CHKPF well may have lawyers vetting everything it says, and advising that the company is in a minefield at the minute.

I don't know. If the company has a strong enough story to tell right now, how about an analysts' meeting to lay it out? Would this benefit the company? Stockholders? Worth the risks?

-- Jim



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