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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Eric Jacobson who wrote (22661)	4/13/2000 4:19:00 PM
From: Eric Jacobson	Respond to of 54805

Re: CHKP Project Hunt Report Thread members, I've posted a partially completed report on CHKP because, although I haven't had the time to complete my research, there has been some interest expressed in this company for some time. I don't own the stock and am in no way an expert on the company. This should be obvious from reading the report. In particular, I haven't had time to fully resolve the issue of whether this company is a Gorilla or a King. It's one or the other, and I think there are probably arguments to be made on both sides. This is the hardest part and where I got bogged down. However, I think a conclusion that it's one or the other is important. Although this issue is not fully resolved, I think the report contains some good information on where the company is in the product adoption life cycle. I'm hoping the report is useful, especially to those who may use the report to conduct further research and perhaps fill in some of the missing pieces. Eric

To: Eric Jacobson who wrote (22661)	4/13/2000 4:43:00 PM
From: Mike Buckley	Read Replies (2) \| Respond to of 54805

Eric, I had the impression that we could expect a partially completed Hunt report due to your lack of time. If that's partial, WOW! Thanks for a terrific report! I wonder if you see a new tornado occuring in the VPN market. The reason I ask is because the Motley Fool write-up said, "VPN-1 enjoys over 50% market share in high-end VPN appliances, three times more than its next competitor, and its lead is growing. That market is expected to expand about 300% this year, according to Infonetics Research. Frost & Sullivan predicts that IP-based VPN services will boost revenues from $1 billion currently to $13.59 billion in 2004. Check Point increased its VPN subscriptions 24% just this quarter, from 34,000 to 42,000." I assume the VPN services Frost & Sullivan mentions refers to scope including far more than security products and services, but a 300% increase projected by Infonetics looks like a tornado to me. Am I missing something? --Mike Buckley

To: Eric Jacobson who wrote (22661)	12/10/2000 10:14:28 PM
From: Brian K Crawford	Respond to of 54805

Checkpoint Software CHKP. Update to data provided in Eric Jacobson's Project Hunt report: Updated Revenue and Net Income shows CHKP revenues re-accelerating to over 100% yearly gains in latest quarter. CHKP had 100% plus revenue growth in Security Software in 1997, which then fell below tornado rates. Checkpoint remains a leader in this area. CHKP may be entering a new tornado. It is showing substantial growth in Virtual Private Networks. However, the re-acceleration of revenues may also be due to a recent move to an OEM sales model, from what had been a primarily direct sales model. Selected Quarterly Financial Information Quarter 3/31/99 6/30/99 9/30/99 12/31/99 3/31/00 6/30/00 9/30/00 Net Revenues (Mill) 43.8 50.0 57.8 67.9 78.2 90.7 116.0 Net Income (Mill) 19.7 21.5 24.7 29.8 34.9 43.7 61.6 Year over year: Revenue Growth 37% 46% 64% 68% 79% 81% 101% Net Income Growth 30% 28% 46% 60% 77% 103% 149% Installations (000) 77 80 100 110 125 143 162 VPN Installs (000) 17 21 27 34 42 54 66 Brian