Check Point Software Technologies Ltd. (CHKP)

Forward PE of 14. Generates lots of cash. Almost $5 in cash per share. No debt. High insider ownership. I Like it

Check Point Software Technologies, Ltd incorporated in 1993 is in the business of developing software and hardware based applications mainly for secure connectivity over the internet. The company primarily focuses on VPN and firewall technologies to protect the threats occurring in the network. Checkpoint like any software provider generates bulk of its revenues from sale of products and licenses, while software subscription inflows also provide significant contribution to the tally. The company is a global player and generates around 54% of the revenue from outside North America.

The internet security industry which has now evolved to over $12 billion has seen a double digit growth in the past. Such a trend is likely to continue with the rise of connectivity among organizations of all sizes leading to increased risk of resources being attacked. Checkpoint with its strong hold of market having over 95% of the fortune 500 companies, as clients and its venture to tap small size companies with acquisition of ZoneLabs will surely benefit from the growing trend.

Checkpoint since 2004 has witnessed strong performance, though the drop in product revenue has made a dent on the growing trend since the start of 2006. The third quarter inflows seem to have clawed back a bit, with strong adoption of new UTM offerings. In 2007 the major growth driver for the company will be its acquisition of Protect Data, the Sweden based provider of data protection security products. This $586 million acquisition will not only help Checkpoint in acquiring a top performing company that is witnessing a revenue growth of 92%, but will also make its foothold in the rapidly growing data protection market, that has potential to generate close to $100 million for the company in few years. Moreover, considering the release of high performing UTM product line in mid 2007, strong fundamentals, and healthy industry outlook, Checkpoint appears as a good deal.

I think Check point which is securing internet stock
Is much valuable stock and with heavy Cash .
company P/E and forward P/E Is much discounted from his peer. there is no real slow down In comnay business But seems low valuable cause of Analyst expectation for slowing Growth and many cash which not used properly for Growth potential which from my point of view
is not justified .
Customer in the mean time got ongoing plan to By back stock .

Thanks,Zohar

Strong cash position with no debt. Some recent improvement in earnings and revenue. Estimates show more improvment and stock has shown history of meeting and often slightly beating expectation.

Buy of a security compagny in Europe

They serve a critically important security need.

a good stock

solid pick

Return on equity is in the 19% range. 51 % margins...undervalued compared to competition by roughly 30%

Leader in securing the internet and also expands marketing activities and resources with increased investment and business development.

VALUE LINES - TIMELY STOCKS IN TIMELY INDUSTRIES

I have to go with ourpreform with this stock. Solid company Internet security is a ever growing field. You will need to hold this stock for a while. But never buy a stock you wont hold for 10 years. So pick solid comapnys and you will come out looking good.

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

No dividends, no strategic expansion.

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.

As the US Military continues to fight its global war, the new defense budget has an increase of $20 Billion and a tenth of that specifically focuses on surveillance and security technology... CHKP will benefit.

just a gut feeling

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.

Following the herd

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.