Kim Bolton
Checkpoint Systems
CKP-N
BUY ON WEAKNESS
Nov 16, 2022
Product quality? Rebounded significantly. Software is exceedingly robust on both firewall and detection. He'd look to buy back around $120. (Analysts’ price target is $152.00)
The market is moving away from software based fire wall solutions into more dedicated hardware appliance solutions. They, and Netscreen, have developed very powerful solutions to handle firewall functions.
Has a lot of competition. They are really a firewall and VPN Company and are expanding into a full and two and security solution for enterprise. Have to wait to see if they will be successful.
Cybersecurity leader from Israel. Trades at 17x earnings, no dividend, down 17% this year because it reduced guidance. This area will become a very important way we look at the digitized world. Expenses have gone up because of new products coming out. These should increase revenue. A few bumps as it moves to a subscription model.
Security and cybersecurity. Trades at 18-19x earnings. Lots of free cashflow growth. A growing area, because we've digitized quickly over the last couple of years. Moving to a SaaS model plus new products, which are producing lumpy quarters. Incredibly well run. Buy at these levels. No dividend. (Analysts’ price target is $133.63)
A company from yesteryear. Revenue coming from firewalls, so revenues are stagnant. Great margins and cashflow, but lots of competition. Need to reinvent themselves. He'd pass.
Moved to the sidelines a while ago. The growth slowed and other companies were asserting leadership in the industry. Over the last 5 years, there has been many other companies coming up.
He owns CHKP instead of PANW or CRWD. It's a bit cheaper and has a suite of new products that will accelerate their revenue growth. Cybersecurity is a very strong growth area globally that you have to be in. People working outside the office creates a lot of issues. Owning any of them will benefit you.
Cybersecurity is becoming a very important part of anybody's network. Important space that will grow substantially. Transitioning to SaaS. Going through a sales cycle. Grows organically. Continues to execute. PANW has done better.