בס״ד

Internet Security is for Losers (CHKP)

Posted on September 5, 2022

Check Point Software Technologies Ltd. (NASDAQ:CHKP) operates in that dark web space between security and surveillance.

The Israeli company was the first to introduce the “firewall” to the online security industry and has since been a leader in cloud security efforts for any and all who operate in that realm.

But nobody seems to care…

And that’s evident in the stock’s price action over the past six months.

But before we get there, have a gander at the company’s fundamentals –

  • First, P/E is 19.55 and Forward P/E is 14.81 – that is, we either get a massive earnings boost in the next twelve months just to maintain the current price, or price declines by roughly 25% to keep in line with the current earnings picture.  Either way, we’re looking at some bad prospects.
  • Dividend Yield is Zilch.
  • Price to Book is a pot-bellied 4.92, and
  • EPS came in this year at an entirely unremarkable 2.00%.
  • The strongest aspect of the stock is that it’s 24.80% insider-owned, and that single fact could make or break our effort today.

More on that in a moment.

In the meantime, take a good look below at the

And that looks just fine from here.

And from Heaven on high…?

We’ll leave that to the Al-mighty.

May He judge us favorably this year and in all coming years.

With kind regards,

Hugh L. O’Haynew

 

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