Friday, November 10, 2006

CNET Blog Mentions Check Point Software (CHKP) As Possible Buyout Target

CNet's 'Corporate Security' blog calls Check Point Software (Nasdaq: CHKP) a possible takeover target. Blog writer Jon Oltsik said the market is penalizing Check Point for its low growth and basically ignoring the fact that the company is a cash cow. He said, "With a market cap of around $5 billion, Check Point is an absolute steal. Granted an acquirer like HP (NYSE: HPQ), IBM (NYSE: IBM) or Symantec (Nasdaq: SYMC) would alter Check Point's business model and thus lower profitability, but it would also buy a leading security brand, a loyal installed base, some of the smartest security brains in the world, and a cash-generating machine at a tremendous discount." Link


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