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  • sarpedon14 sarpedon14 Nov 20, 2012 5:38 PM Flag

    As expected, conference call useless

    The only thing to realize is that CRM is basically a ponzi scheme that is funded by it's employees. If you take back the $200 million in proceeds from equity plans over the last 9 months, spend another $250 mm on non-cash compensation (stock), then basically the employees are pumping over around $500 million a year into company coffers. Contrast that to op cash flow and you realize why the company is able to maintain the illusion of going concern, and why, should the constant flow of employee cash ever come to an end, the company will quickly run out of money.

    Also ask yourself why deferred revenue and current assets are roughly equal, and what the implication of that is from an economic standpoint. (i.e., what would they have if they didn't take contract pre-pays?)

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