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

To: jkb who wrote (2478)	5/11/1998 10:40:00 PM
From: P.M.Freedman	Read Replies (1) \| Respond to of 7150

The sell-off of CHKPF is mostly based on the termination the partnership with MSFT soon. Without the sales on NT, the earnings of CHKPF may shrink a lot. It was not a real competition worry. So, today's deal in deed was of significance for CHKPF. I am glad that MSFT realize that the risk to build their own security wall on NT. They reacted much much quicker than I expected. The fact that any holes found on the security wall will become a killer for whole NT sales. Actually it is so easy to find something wrong by an expert. Most of people must remember that an Israeli kid was able to break into the Pentagon's system. It made the whole world dropping glasses. However, it is not that easy to find a good firewall product in this world. Most of people in this thread must have found that there are so many companies which offer firewalls in security software sectors are currently losing money. They spent time and money but failed to make good firewalls. The engineers to write security software is not like some so called engineers who use visual basic or Oracle 7. Don't you see NETA getting headache on the newly acquired TSIX? They have found that few company interested in TSIX' products. NETA started to offer cashback bonus for CHKPF's resellers if they can sell TSIX' products instead. I don't think those resellers will take short term bonus instead of long term growth. They have to consider the periodical upgrade of the firewalls. CHKPF is at least one year ahead of NETA on firewalls as it claimed. I still believe CHKPF should be priced at $55 based on last quarter's earnings. Even based on this quarter's estimates, the stock should be traded around $45. The third quarter should be a great quarter. My expectation on the third quarter is $0.50+ per share. All my best wishes for CHKPF's investors.