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Technology Stocks : Check Point Software (CHKP) -- Ignore unavailable to you. Want to Upgrade?

To: khacha who wrote (6585)	3/12/2002 5:01:17 PM
From: JSwanson	Read Replies (1) \| Respond to of 7150

I appreciate your response. I want to make clear that I am not down on CHKP, I'm only trying to being VERY objective. I have initiated a small position. The company looks interesting to me. That being said, I am still trying to determine a realistic growth number going forward. You wrote: Saying that Large Enterprises are not going to upgrade is like saying that nobody will buy a new computer because they have bought one years ago. This is true but no one is claiming that Dell is going to be able to grow at the same rates that it grew in the late 1990s. The PC market is saturated. Sure there will be upgrade cycles but Dell, and Microsoft for that matter, will not enjoy the growth they had before the PC market matured. I'm just trying to determine what is a realistic growth number for CHKP. I know its not the growth it achieved over the last five years. As for the large installed base in large corporations, I think you are right in saying that when those corporations begin rolling out their distributed security solutions, to the extent they have already deployed CHKP, they will deploy the S-Box. I would not discount the brand recognition of SonicWALL, Watchguard and NetScreen in the Small/Medium Enterprise market. They are fairly well entrenched in the lower end of the market. My main concern is the attention that is now being focused on the SME market's growth potential and the attention CHKP's historical margins is having on competition. It seems like every company with products addressing networking are looking to get a piece of the growth and/or margins. Again, not trying to be rude. I just trying to learn and be objective. Regards, JS