Check Point Software Technologies Ltd. (NASDAQ:CHKP)

Protecting from hackers is a priority for every F500 out there, and many will turn to Check Point. Their blade system is brilliant, and they continue to lead the sector in innovation.

Valuation looks good, and sales and earnings are primed to grow well.

Computer security is as essential to the global economy as the electricity the runs the machines and data centers it protects. CHKP is going to be there protecting us for a long time to come.

extrordinary sales operation; appeal to pper income persons; high quality of goods

As hackers improve, internet security will only grow...Could be a buyout target or turn into a silent titan.

Security solutions are a very big deal nowadays and only getting bigger, so that makes plenty of sense for a deep-pocketed technology giant without a horse in the security race.
   
Cisco Systems (Nasdaq: CSCO) does sell network security products and services but would welcome an extra helping of market credibility; Hewlett-Packard (NYSE: HPQ) has the wherewithal and the end-to-end ambitions, and its software-based portfolio fits nicely with the world view of new CEO Leo Apotheker.

And this quarter's high-quality results did nothing to hurt Check Pint's chances of finding a buyer.

Check Point Sets a New Standard for IPS in Latest NSS Labs Group Test

Check Point IPS Software Blade Earns "NSS Recommended" Rating and Achieves a 97.3 Percent Score in Security Effectiveness

Demand for network security is growing on the back of increased security threats and regulation.

Checkpoint all but owns the enterprise firewall market. They have many OpSec partners (i.e. companies that have worked to make their security products compliant with Checkpoint's). They are very cash rich and are well positioned, because of all their OpSec partners to acquire companies and expand their footprint.

trendspotter

The bastion of liberal idiocy (aka Harvard University) has sold all of its shares in Israeli companies.

Leading and worldwide information security technology company (high growth potential)

Management will change. They need to increase share value to walk away better off. Could be a merger candidate with one of a few bigger internetwork fish light on security and open minded politically.

The dependence of the web, the wireless availability to emerging economies of nations larger than the U.S. will require this company's protective products.

Following the herd

CheckPoint has solid fundamentals, they are in an up channel, and they have products that are in a growth area of the tech industry. I see their potential for beating the market easily.

Financials: zero debt, ROE > 18.5%, Profit Margin > 54%, Quick/Current ratio > 4, current assets are 3 times current liabilities and they have over half a billion in Cash.

I think they will do fine as technology spending will bounce back before the economy turns completely around.

just a gut feeling

The stock still trades cheap, only 12.5 times a 2009 EPS estimate of $1.85. The company is cash flow positive and the balance sheet is free of debt. Cash on hand is about $510 million. Not only will Check Point be able to survive a more prolonged slowdown, the company could thrive. The company’s large cash balance will give it the opportunity to acquire distressed rivals and increase market share.

The company trade at the same value no matter financial results.

No dividends, no strategic expansion.