Another day, another "newswire" paid for pr statement. This isn't a start up company and there aren't GAAP earnings, but there appears to be more paid for pr than companies with GAAP earnings. Is there a connection?
The share count has grown significantly and that's far beyond the 4x increase when there was a 4 for 1 split. The share count grew before and after the split and in addition to the share increase that occurred with the split.
Among other things, CRM doesn't have GAAP earnings and doesn't expect any this year or next year, according to the CEO, who has been selling CRM stock regularly. Despite CRM being a 15 year old company that doesn't earn money (GAAP) and despite serious competition, there is heavy, continued insider selling (which isn't shown in insider sales figures that the company is supposed to update on Yahoo Finance. There are other reasons, but the reasons I'm posting here are negative enough.
Others have posted explanations regarding bookkeeping and other actions.
I just closed out my small QCOM put position. QCOM's drop could be nothing (and is likely to be partly undone) compared to what will occur to CRM, IMHO.
There are "Market Realist" posts three times this afternoon while Benioff sells a massive number of shares and two key employees also sell shares regularly.
GAAP earnings count and CRM doesn't have any and likely won't have any next year, according to comments from the CRM CEO. Eventually, if ever there are GAAP earnings, will the amount even be 1cent per share or 5cents per share. The high company expenses include extensive "equity awards" to some insiders. When the insiders sell those shares on the retail market, isn't that just the illusion of cash flow?
Healthcare rates have increased dramatically over the past 30 years. The Affordable Care Act (aka Obamacare) is reducing the increases compared to what they would be without Obamacare.
Despite massive selling by MB, who is insider #1, the report about insider shares sold has remained the same for well over a year. According to Yahoo, the company (CRM) is responsible for updating that figure. At first it appeared that it might be an oversight by CRM, but IMHO it's morphed into more than negligence.
Often, the analysts' expectations are already priced in the stock. That's why I took profits in my CELG short last Thursday. I haven't gone long at this price and won't until after the quarterly report (if warranted).
How many millions of dollars has he removed from the coffers so far this year? (I haven't added up the cash he acquired from all those sales .)
It's the article regarding how MSFT's new CEO is aiming to gain prominence as a leaner (meaner?) company and how that could lead to the demise or at least weakening of CRM.
People who have retired with defined contribution plans are getting hit more than those with defined benefit plans because of the artificially low interest rates, though all retirees without huge payouts suffer with such low interest rates.
The system for non-military Government employees was revised as of 1983 (or within one year of that) to an employee contribution plan plus Social Security. For employees who joined in prior years and chose to keep the older system, employees continued to pay out of each paycheck into the defined benefit plan.
His buddy Cramer who emphasizes not buying stock that insiders are selling, makes only general comments about his buddy. While insiders in some company sell some of the stock they get, often to pay taxes, but Cramer has sold all the stock/"equity awards" he has collected in 2014. At a quarterly meeting, the CEO admitted CRM won't be profitable in 2015 or 2016. As losses add up, some wonder whether the company will ever be profitable. The spending continues, even on things such as buying opportunities to give keynote speeches (this became public when Larry Ellison of Oracle returned a million dollar check to CRM's CEO).
CRM is in distribution and large sales can affect the stock any time, as occurred when the stock opened on a Monday morning less than three months ago and immediately sold off from over 56 to about 48. Next time such drops are likely to come from lower levels and to lower levels.
While I didn't have a position in SNDK and wasn't available when they announced their report, I benefited from a bearish position on KORS. I closed out that position in both options and in the shorted stock position I put on. I was tempted to reshort just before today's close, but it may be short term oversold at this point. Reality trumped the ultra positive comments of a few.
CRM is likely to copy KORS and SNDK, both former momo stocks, IMHO.
I don't have a position in CP though I have traded it previously. My only comment here is the currency translation. $2.11 Canadian is NOT $1.31 U.S.. An obvious error like that makes me wonder what else in that "news" report is inaccurate.
CRM is losing relative strength, by starting to pull back while the S & P and DJIA continued to move up. IMHO, CRM is in distribution, just as KORS was before KORS started to sell off.