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CHKP - Check Point SoftwareWeek Ended: 1/27/01
Price 154.94 P/E Ratio 129.81 52 Week High 177.88
Last Week + 25.81 Earnings Date 4/19/01 52 Week Low 52.50
Picked At 149.81 Date Picked 1/21/01 Sector Technology
Activity
Current 154.94 Open 141.00 Change 11.50
Low 140.88 High 155.38 Volume 4,949,700

ZACKS | NEWS | PROFILE | HISTORICAL PRICES | OPTIONS | D-CHART
Company Description

Check Point is engaged in secure enterprise networking solutions that enable customers to implement centralized policy-based management with enterprise-wide distributed deployment. For the nine months ended 9/30/00, revenues rose 88% to $284.8M. Net income totaled $140.2M, up from $66M. Results reflect the strength of the Company%s markets, products and solutions for securing the Internet and increased financial income.

Play Description

January 21, 2001

Check Point Software provides Internet security solutions for enterprise networks that enable secure business-to-business communications over any Internet Protocol network. The stock hit an all-time high of $177.88 on October 25th. Since then, CHKP has traded as low as $91 and as high as $159. On Friday, shares of CHKP gained $11.63 following the company’s earnings announcement and a 2:1 split, payable on February 12th. The sock has cleared its downtrend line and overhead resistance at $144. We believe that the stock currently has the momentum for a split run. From a technical standpoint, support is Friday’s opening price of $145.34 with stronger support at Friday’s intra-day low of $141. Resistance is the December 15th intra-day high of $156.31 and then the December 8th intra-day high of $159. Traders may consider entry points on a bounce off of $145.34 or a move above $156.31 on volume greater than 2.5 million shares, only in a rising market. We are setting stops at $137 to limit potential losses. WARNING: This play is extremely volatile and is therefore not for everyone.

Picked on January 19th @ $149.81
Change since picked +0.00
Stop Loss @ $137.00

Update

January 25, 2001

Check Point Software traded as high as $160 on Wednesday. Unfortunately, the stock closed the session at $149.81. CHKP lost even more ground on Thursday, hitting an intra-day low of $141.50 and closing at $143.44 on volume of 4.88 million shares. We were stopped out at $144, so we are dropping this play tonight.

Picked on January 21st @ $149.81
Profit/Loss = -5.81 (-4%) (Stopped Thursday @ $144.00)
Best Profit = +10.19 (+7%)

January 23, 2001

Check Point Software, a leading provider of Internet security solutions, is trending higher after a solid earnings announcement last week and the upcoming 3:2 split, payable on February 12th. On Tuesday, shares of CHKP hit an intra-day high of $159 before pulling back to close at $153.81 on volume of 5.12 million shares. The stock has made five consecutive higher lows and tech sentiment is improving so CHKP could continue to run into the split date. For now, support has come in at the January 19th intra-day high of $150.25 with additional support at $146.19, Tuesday’s intra-day low. Resistance is Tuesday’s intra-day high of $159 and then the December 11th intra-day high of $169.25. A bounce off of $150.25 or a move above $159 on midday volume of at least 2.5 million shares may be possible entry points. We have moved our stops up to $144 to protect against a sudden downturn.

Picked on January 21st @ $149.81
Change since picked +4.00
Stop Loss @ $144.00

 


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