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

To: P.M.Freedman who wrote (1709)	2/21/1998 12:19:00 PM
From: roger	Read Replies (2) \| Respond to of 7150

I am not sure chkpf being taken over is a good thing. CHKPF is cheap. It's selling at a PE range of 30-50 while the company is growing at 155% a year. CHKPF is selling at PE 40 now. Say IBM bought it for $50 a share. It would be a great deal for them because, they get a brand name, major market share plus growth. However as a share holder I am not sure it's a good deal. A year ago the stock is trading at around $22 and a PE of around the same 30-50. But look what happened to the price. The earning forced the price up. A year from now, chkpf will be worth over $60 easy if nothing else the earning growth will push the price up. The year after more, the same. I bought CHKPF because it's cheap. IBM is expensive consider it's growing much slower. Will IBM's share price double?? for the next few years?? I don't think so.