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.
Selling or shorting now (via stock or options) sounds appropriate. There could be some institutional selling on this bounce because tech in general is losing luster. Retail is also a place to avoid, IMHO. Yesterday I benefited from closing out some positions that had turned from paper losses to real gains. This is an opportunity to reload certain stocks. Some stocks that were institutional favorites appear to be in distribution.
I don't have a position in GILD now. If Medicare becomes able to negotiate drug prices, that would affect GILD's expected price. Besides that, GILD has already posted comments regarding subsidizing patient co-pays.
I took a few hundred dollar just before 1 p.m. EDT and have no position in CELG now and may not look at it until Monday.
I added to that starter put position earlier this week and so far it's starting to work.
Thanks for your concern.
This is a time in the cycle when markets go up and down wildly. In addition there's a monthly options expiration at the end of the week. It's not unusual to have a large up day in the middle of the week, often Wednesday. Though I closed out my CRM options position yesterday, I'm holding some stock short because I think today's bounce could bring out sellers either today or within a few days. Thus, people looking to buy puts either this week or next week will welcome today's bounce. CRM doesn't benefit from the collaboration of AAPL and IBM. In fact, such collaborations could be detrimental to CRM.
Please bid up the calls and push the put prices down to bargain levels today.
While the title of that article refers to sales and margins, a key thesis in the article is about earnings, not sales.
As CRM has shown, it's possible to have increasing sales along with decreasing earnings, no GAAP earnings, and increasing GAAP losses.
There's an interesting statement in an article about large tech. The statement refers to 16 years out of the prior 23 years having had increasing earnings and earnings are likely to shrink. CRM and VMW are listed as tech examples. Since CRM doesn't have GAAP earnings does that mean GAAP losses will increase? The point of the article is to expect reduced earnings in tech stocks that have had GAAP earnings. When there are no GAAP earnings now, wouldn't shrinkage in earnings translate into growing GAAP losses?