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CHKP: 15% FCF/EV. enough said. i freely admit i buy software companies at 15% FCF/EV with eyes closed.

Just in case you were peaking out of the corner of your eyes, any thoughts about the business? In particular, how do they succeed in mobilizing an extra couple of hundred million from their balance sheet every year? Is this mostly pre-payment for subscription software while revenues grow quickly, meaning they have more and more cash which they can't count as earnings until the end of the year?

And why is a fast-growing debt-free software company trading at 13 (15?) times free cash flow? Could this be the market worrying about having a nuclear bomb pointed at the company's HQ in a few months,, by a guy who wouldn't like the sound of the names of the officers and directors?

Regards, DTM
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