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

To: P.M.Freedman who wrote (2534)	5/12/1998 8:32:00 PM
From: Pirate	Read Replies (2) \| Respond to of 7150

Excuse me for jumping in, but I just ran across the msft news, and of course started checking out this stock. Seems to me that it is vastly undervalued compared to the other players (RAPT, CYBG, NETA). They are all trading at ridiculous multiples, and Checkpoint seems to be rated the top product by bunches of reviewers in the market. Last year Citrix was hammered down by Microsoft announcing a competing product - down to $9 from $40+. It skyrocketed back to $60+ within a few weeks of the announcement that they will "play together again" like nice little software companies. Given the earnings of this companies, the multiples of the players in the same market, and the previous price, what's to prevent this stock from doing the same? Have I missed something in the fundamentals?

To: P.M.Freedman who wrote (2534)	5/12/1998 11:51:00 PM
From: jkb	Respond to of 7150

Tuesday May 12, 7:53 pm Eastern Time ADR REPORT - Israel's Check Point surges By Ian Simpson NEW YORK, May 12 (Reuters) - Israel's Check Point Software Technologies Ltd rose in heavy trade Tuesday, helped by a wider alliance with Microsoft Corp. (MSFT - news). Check Point, battered in recent weeks by worries about its results and possible competition from Microsoft, stood out among American Depositary Receipts (ADRs) and foreign shares by rising 3-3/16 to 30-13/16. Volume was heavy. Check Point was near the top of the Nasdaq's most-active list. Analysts said Check Point, a leader in so-called ''firewall'' software that protects networks from intruders, was boosted by the announcement Monday that Microsoft and the company were expanding their two-year-old partnership. The companies said in a statement they would provide software to filter and direct incoming data for networks running Microsoft Windows NT, the standard operating system for corporate personal computers. The move also expands Check Point's potential market from its roots as a supplier of Unix-based systems such as those running on Sun Microsystems Inc. (SUNW - news) John Powers, an analyst at UBS Securities in San Francisco, said the statement was more important for asserting Check Point's position as an industry leader than for its technological points. ''Check Point is the only player in the firewall sector that is taken seriously by the other technology companies and this announcement by Microsoft is an indication of that,'' he said. The statement also eased worries in recent weeks that Microsoft might try to take over Check Point's niche market. Eric Zimits, an analyst at Hambrecht & Quist in San Francisco, said, ''This kind of clears the air about its relationship with Microsoft and shows the two companies as more cooperative than competitive.'' Shares in Check Point are off Tuesday from a closing price of 42-1/2 on April 21, the day before reporting first-quarter earnings that beat Wall Street estimates. However, worries about revenues and a possible threat from Microsoft have helped drive down the stock's price. Kama Krishna, an analyst at Laidlaw Global Securities, called the drop in Check Point's stock price ''an aberration.'' He added, ''Right now, the stock is becoming a trading stock -- it's very volatile.''