Salesforce (NYSE:CRM)

S&P Star Ranking is 2 (SELL)

S&P Fair Value Rank is 1 (grossly overvalued)

S&P Earnings & Dividend Rank is C

Relative Strength is 81

Growth Rate - 5 Year Earnings Per Share 27.98%

Net Profit Margin (Current) 4.20%

Net Profit Margin - 2 Years Ago 4.20%

ROE (Current) 6.00%

ROE - 2 Years Ago 6.00%

The stock is grossly overpriced. CRM has growing competition and the CEO is flaky in some respects.

This pick was made because its below the 50day moving average as of April 10th.
The whole list I perused through below 50dmva for 4/10/13 were;
AMZN,SIRI,PRAN,PCYC,CNQR,PCLN,CRM,LULU,CVLT,NFLX,ULTI,CTXS

These tickers were picked from my tracking universe of the following tickers:
CCI,AMZN,SIRI,LMT,PNRA,SBAC,RPRX,PRAN,MDVN,VZ,ALXN,PCYC,CNQR,INFI,VRTX,PCLN,CRM,LULU,CVLT,NFLX,OPEN,GMCR,N,CAR,REGN,T,SBUX,MO,ULTI,MAR,EQIX,CTXS,CLH,BLL

This was supposed to be a simple tracking blog post rather than a pitch but as a new player, it takes a couple of days to be approved for blog posting...oh well. Hopefully I remember to look back at these pitches.

No real earnings. Management's own projections call for the issuance of shares equal to 52% of expected FY2013 revenues. Craziness.

A settlement of accounts: a day of reckoning.

Expenses are consistently growing faster than revenue and the Company has not made any money for multiple years. R&D is sky rocking to keep the pace of innovation about that of the company's numerous strong competitors (IBM, Microsoft). Who knows maybe amazon or google will jump into the space too, they love doing everything.

peak and need correction

My impression is that they sell overpriced, mediocre software. Evidently, their near monopoly in the space still isn't enough to make them profitable.

the cloud is sinking fast

CRM, show me the money. This company may move through huge promise to big disaster without ever actually having a quarter in the 'brilliant' category.

Fundamentals and share price are not synchronized

pumped too much

When Cash Flow really isn't Cash Flow anymore. Something's got to give.

8/21/12 - Failure to break above $150 price point with broader market nearing 1450 resistance level. GAAP earnings coming out this week will be horrible (yet again). Even though the US equity market is meant to be the replacement inflation buffer for the shadow banking system we would need another 20 years of degradation of America's education system to produce professional money managers that could possibly argue with a straight face that salesforce.com is an attractive investment.

Companies will be concerned about "Vendor lock-in" and will avoid migrating to the platform.

Marginally unprofitable, and company plan is to stay that way. Management not taking care of GAAP earnings.

making money one bit at a time ...by shorting this overpriced stock

Mo-mo name with deteriorating fundamentals.
(Thanks gocanucks!)

Way overpriced....Won't outperform Bull Markets anymore...