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

To: up3up4 who wrote (2301)	5/3/1998 10:29:00 AM
From: Peter Y. Hsing	Read Replies (1) \| Respond to of 7150

In new tech companies/markets, investors aren't as concerned about earnings in the near-term (e.g. Internet stocks, some software or networking equipment cos.); instead, investors of CHKPF want reassurance that the market for the company's products is huge and that the company has the ability to execute its business plan, fend off competitors, and realize a sizeable chunk of the market. Of course, ultimately, as the company establishes itself, the earnings will materialize and the seemingly lofty prices of today will eventually be deserved. However, as an investor of CHKPF, I'm a bit disappointed with the top line growth. I know that the market is HUGE; so has market demand slackened for CHKPF's and its competitors' products recently? I don't necessarily think so, at least not in the long-run. As investors have hammered this stock recently, I believe that, if CHKPF's products and support are competitive and if the potential market for these products is indeed very strong, CHKPF is an extremely inexpensive and attractive acquisition candidate, especially when considering that CHKPF dominates its field. With sky-high P/E valuations for most other major tech companies (save maybe IBM, HWP, and CPQ), it'd be cheap to acquire CHKPF (trading at some ridiculously low P/E of near 20) using stock as their currency (essentially amounting to buying earnings very cheaply). Unfortunately, I'm at a loss to speculate on which companies would be a strong fit. Any suggestions? Regards, Peter