Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: SpecialK who wrote (12060)	4/5/1999 12:55:00 PM
From: SpecialK	Read Replies (2) \| Respond to of 43080

CHKP getting pounded as low as 31.625 today, down 8 or 20%. No news, of course. This may be the shakeout. Recently there was a re-iterated buy from Soundview. Check Point Software announced today that it has signed a distribution agreement with GE IT Distribution Group. This makes Check Point's products available to more than 1,500 resellers serviced by Access Graphics and Integration Alliance, the GE IT Group businesses. This further strengthens Check Point's distribution capabilities, which were already among the strongest of any information security product vendor. We are reiterating our buy rating on the stock with a target price of $55. Details: * Distribution agreement: this agreement provides an important new distribution channel for Check Point in that the resellers affiliated with Access Graphics and Integration Alliance were previously only able to offer Solstice Firewall-1, Sun Microsystems' OEM version of Check Point Firewall-1 product. It complements existing agreements with two-tier distributors Ingram Micro and Westcon. Check Point clearly has one of the most extensive distribution channels of any information security product vendor. * Forecast and valuation: we continue to believe that the current quarter is progressing nicely. We are forecasting sequential revenue growth of 6.2% from 4Q to 1Q, which reflects the relative softness in 1Q for enterprise software. Our 1999 and 2000 EPS estimates are $2.01 and $2.50, respectively, or 25% y/y growth. The stock currently trades at 16.6 times our 2000 estimated EPS of $2.50. Applying a conservative multiple of 22 to our 2000 EPS estimates results in a 12-month target price of $55 per share.