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

To: Holyman who wrote (2481)	5/12/1998 12:09:00 AM
From: Alex Jung	Read Replies (1) \| Respond to of 7150

With the assurance of continuing relationship with MSFT, I believe we are back to square one (&some) on one of two concerns that contributed to the fall after the great earning report. The other concern, raised by several houses but not all agreed upon, is the quality of the earning and a possibility of doctoring of revenue. Here is an excerpts from news.com about this: {"Though yesterday's first-quarter earnings beat Wall Street analysts' expectations by a mile, Oppenheimer's Schmidt, a bear on the stock, was unimpressed. "Basically, the earnings quality wasn't there," she said, even though the company reported net income of $15.5 million or 41 cents a share, better than the consensus estimate of 31 cents a share, according to First Call. Higher profits came from factors other than revenue growth, she argued. Revenues for the quarter ending March 31 were $30.8 million, up 125 percent from $13.6 million for the comparable period in 1997. For 1997's first quarter, earnings were $6.4 million or 17 cents a share. However, Prudential Securities analyst Paul Merenbloom at Prudential reiterated his buy recommendation, setting a target price of $51 in the next 12 months. } Here is another blurb from Briefing: {"However, despite the blow-out numbers, which some analysts suspect might have been boosted by rushing orders into this period and may not be sustainable, as well as contributions from a lower tax rate,...."} ----- I have been waiting/searching for some kind of clarification reassurance from the management about these issues, but have not heard or read any..Can anyone point to the source if any? Anyway, although I believe MSFT concern was overblown (and now vindicated), the future revenue/earning growth rate (someone mentioned on this thread of only 4% sequential quarterly revenue growth) and management issues may still put the coming days' bounce to a short ride.. To clarify, I have just locked into this thread because of a possible entry into a future long position. regards, aj