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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: AlienTech who wrote (25813)	11/28/1999 11:45:00 AM
From: Logain Ablar	Read Replies (1) \| Respond to of 43080

Hi AT: Its a matter of valuation. Assume CHKP earns $3 a share next year (also remember their tax rate will go up from this years 12% to 20% with a potential to 25% depending what they negotiate with the Israel tax authorities. This may surprise some investors). Today @ $145 its trading 48 times next years earnings. Granted the whole market is trading at high multiples but I expect a multiple contraction next year. Thats next year and right now the trend is still up. Tim