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

To: David Rubin who wrote (1995)	4/16/1998 5:03:00 PM
From: Rashley	Read Replies (1) \| Respond to of 7150

If the future looks bright, why wouldn't they put whatever they can into this quarter and blow the number away? Three months from now the market may not be so hot and the reaction to earnings may be pale. If they have a blowout quarter now, with all the Internet hype CHKPF would probably be able to move up significantly. Because playing the higher expectation game is suicide. When a company blows out a quarter, every analyst raises their expectation for the next quarters. The company may even be able to meet the raised expectations for a quarter or two, but eventually they can't and the stock price comes tumbling down. It's far more likely that management will play it close to the vest and exceed only slightly. They will try to manage expectations, keeping as much revenue deferred as they can, so that when a rough quarter comes, they can ride it out without getting killed in the market. RA