Selling (CRM) – Here is a write-up on one of the more overvalued stocks on NASDAQ. I feel that the time is now ripe to begin shorting it because of the technicals as well as recent business developments that are causing people to take a second look at its financials:


Very few stocks are more highly touted by Wall Street analysts than Salesforce. There are some good reasons for this: they are at the forefront of a hot trend in technology, they are growing their revenues at a fast clip, and they even have a .com in their name. However, at 239x trailing EPS ($0.55) and 85x consensus analysts’ non-GAAP estimates for 2012 ($1.54), we believe that the market has overstretched and assigned Salesforce a valuation that is far beyond its intrinsic worth.

Business Model

Let’s take a look at its business model. sells on-demand CRM services to all kinds of businesses, two-thirds of which are in the small to mid-sized category, while enterprise makes up its remaining customers.

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