Investopedia: Check Point Has To Restore Product Growth To Maintain Service Value

It's probably true that Wall Street predictably and consistently undervalues the service/maintenance revenue streams for tech companies - I thought it was true of Quest, which was recently acquired by Dell (Nasdaq:DELL), and I think it's true of both CA (Nasdaq:CA) and Check Point (Nasdaq:CHKP) today.

The problem for Check Point, though, is that the enterprise security market is changing and it's not clear that Check Point has invested enough R&D dollars to stay competitive. While it will be some time before rivals such as Palo Alto (NYSE:PANW), Fortinet (Nasdaq:FTNT), Sourcefire (Nasdaq:FIRE) or Dell's SonicWall can take their lunch money, better product growth is going to be an essential part of maintaining the value of this business.

Please read more here:
http://www.investopedia.com/stock-analysis/2012/Check-Point-Has-To-Restore-Product-Growth-To-Maintain-Service-Value-CHKP-PANW-FTNT-FIRE1018.aspx