The "good will" number will be interesting. It's possible that the developers of this start-up are receiving more money in stock than they would expect to receive if they continued honing the start-up. Why else would they sell now? Will they cash in their "winnings" and apply it to more start-up activity or settle into comfortable real estate or what?
In the very short term you were right. I closed out that put position early today and took a whopping (kidding) $20 loss, on my August 88 put, instead of building out that positiion. A couple of months ago, I did well with CELG. I didn't want to carry any CELG puts into the weekend. Despite upcoming earnings, I chose to restart a token 1 put position at a higher strike price (90) than my former position. I'll decide next week whether to add to it or just hold it. Earnings announcement sometimes come with surprises as some stocks did this week. Besides obviously CELG is not one of my major positions.
When stock is issued in order to have "capital" for the acquisition, does there have to be a time lapse before that stock can be sold? It's possible that the combination of the acquisition and Friday relief rally kept CRM (temporarily from falling more today.
How many longs who claim they are in it for the long term of 3+ or so years, will give in and sell later this year? Will the seller to MB be a major seller as soon as allowed? That would monetize having sold a company at likely a high multiple.
Thanks for the chance to switch to a small short position. I made the decision to take advantage of the bullish comments in order to switch over, though I'm allowing some time for a drop in CELG. A price over 88 is equivalent to a pre-split price of 176, which was and likely is a place to short/buy puts/ exit calls, IMHO.
I agree that CRM will drop more even if it bounces above where it is now. I just replaced part of the put position I closed out yesterday.
While I closed out my trading positions on CRM, I'm holding onto my core (short) stock position because it's not affected by time and I think CRM has a long way down to go even if it's not this week. There are still ample shares to short and will likely remain that way for at least a month and likely much longer than that.
I agree. IMHO it's another distraction, as are other suggestive posts. Expanding isn't the issue. R and D isn't the main issue either. PE is a major issue. GAAP earnings (lacking) is an issue. Now, even the "M" factor could be an issue.
The issue is real profits, GAAP profits. When earnings would disappear if a company counted the salaries and bonuses (equity awards), then the company doesn't have earnings available for retail stockholders. I could explain this in greater detail, but I'd be "preaching to the choir" while those who accept "rastarich's" comments would likely ignore the bearish statistics.
MB's stock sales suggest he doesn't expect improvement in the company's financial situation? Selling stock is more consistent with a company's inability to grow organically and through acquisition. Will SAP protect it's home turf (Europe) and other areas? Will ORCL continue to increase its cloud resources? CRM is already deeply in debt. Even if they could issue debt/bonds, wouldn't they need to pay very high rates of interest to balance the risk? Yet, CRM's high priced stock hasn't been acquired. The 4 for 1 split may have led to the stock seeming to be cheaper, but there are 4 times the number of stock shares due to that split and there has been even more dilution as the number of shares continue to increase, even while there are GAAP losses quarter after quarter.
The word "new" was aimed at people who are new to the site. The format remains, but the figures are likely new to some visitors to this site.
Despite the fact that insiders have sold massive amounts of CRM stock, as reported for transparency, the information CRM supplied for the Yahoo Finance site hasn't been changed in over a year. The lack of trust that has engendered could make someone wonder whether even the insider sales figures from former years were accurate.
Beyond that, there are statistics shown in the new Yahoo Finance format that suggest significant risk. One is the size of debt and another is negative margins in a high priced stock for a 15 year old company. Check out the new format of statistics on Yahoo Finance.
This is in addition to recent reports, as posted on the site, about recent, significant insider selling.
That has occurred previously in so many stocks. Will hedge funds take this as time to sell and short?
According to the ADSK site, the CFO may have already tarnished his career, since ADSK has lowered expectations.
If CRM's CEO expected earnings from such a his latest venture, would he have unloaded all the CRM stock he'd acquired from 2014 options?