The long side isn't winning now. With the exception of some very low volume retracing bounces, CRM has been going down since it topped out briefly at 67. Most of this downside has occurred in an up market. Now with disappointments from a variety of companies and with the continuation of the Fed's taper CRM won't have the bullish atmosphere that had pushed it up. This is when the accounting issues, etc. can make a difference.
Making recommendations as Cantor without actually buying the stock is not the same as Einhorn making a statement by actually shorting the stock.
The Cantor statement is a statement of their prior evaluation. It's not a repudiation of anything.
Did you consider that "cash flow" from insiders selling at market prices shares they've acquired for little or no cost requires issuing more shares. That creates dilution. While some companies balance that by buying back some company stock, some companies don't have the money to buy back shares.
Yesterday's move down was on higher than average volume. While the stock had some up days before that, they were on lower volume. That volume was low enough to drop the averages significantly. Yesterday, CRM dropped on over 6 million shares.
It's likely there would have been a much larger drop if there had been no short covering. While I didn't cover my shorted stock, I closed out options that I may replace.
I still of the question about insider selling during the quiet period (30 days ahead of the quarterly report). Why would someone monetize holdings and actually sell during an SEC designated quiet period?
"Equity awards" have been given to insiders before and if there continue to be "equity awards," an insider who sells stock today at market price can be awarded additional shares that may be sold at open market prices in the future. That's the existing pattern and I won't predict if or how many equity awards there will be in the future.
Even without future equity awards, I think a better percentage to look at the ratio of his remaining shares to the total shares of the float. Even without additional equity awards, that is a larger % than two and a half. The company has given out equity awards in the past and in the past has regularly approved additional equity awards.
Will there be a reply?
You chided whoever referred to a high stock price for a 15 year old company that doesn't have GAAP earnings. The term "obviously" was taken out of context. The market cap is too high for CRM's fundamentals such as GAAP earnings. While non-GAAP earnings are acceptable for a start-up company, CRM is a 15 year old company.
I suppose you have an excuse for MB's company not updating the record of insider trading on the Yahoo Finance site. Also, according to the SEC a company's "quiet" period starts 30 days before the release of a quarterly report. Rules are rules and eventually companies get "called out" for that. Which day will be "eventually?"
Is selling now a violation of SEC rules? Are they rules or guides?
It's interesting that despite all the insider selling and no insider buying at market prices, the figures presented by the company to Yahoo Finance appear to not have changed. That 200 purchase (by a director) was about 1 1/2 years ago. Have those 200 shares been sold? That entire chart on the insider transaction Yahoo Finance "page" has not been changed to reflect any of that. Why not?
IMHO, it's not about anyone in Washington as much as it's about losing customers. Not only is CVS a competitor, but there are pharmacies in other stores, too. They need people to come in to fill prescriptions AND then shop while there.
The poster who was overly bullish on the site today, issued bearish comments about the stock today, but was able to have those comment only in the user name list. Regardless of what you think of that poster's comments on the CRM site, the poster's completely opposite comments that appear under the poster's user name render that poster unreliable, at best, IMHO.
I covered my short too soon because I didn't want to carry this over the weekend. This morning I checked the results and didn't reshort, so did nothing with KORS today. I'm bringing this discussion forward for those who missed it this morning.
Perhaps the size of the cloud market is as predicted for 2020, but holding past the valleys that occur in 2014 and 2015 could force out those who think they will ride through the valleys, but won't. The second reason to question those who emphasize something 6 years out or even 2 or 3 years out is generally because far out predictions are often wrong, especially because predictions are generally more positive after the peak for the next year or two has likely been reached.
For example, just as MSFT, etc. has surprised many to the upside, stocks with revenues but no earnings could surprise to the downside. Also there has started to be volatility and though I exited my VXX before today, volatility has started to pick up.
I don't have a position in DECK now, though I have been long and short in the past. IMHO doitagaindalls has a better understanding of DECK over the past beyond the last year. IMHO, that poster's comments make sense. In DECK, the moves can be erratic and understanding that doesn't make a poster a "cheerleader." BTW, I don't know either poster.
The outlier target for KORS was over 20 points higher than where the stock dropped to this morning. Three months ago some analysts had 60+, even a 67 target for CRM. The stock shot up to 67 briefly and then went down to sub-50 shortly after the report.
Actually, this morning's bounce in CRM would let me add back shares I couldn't resist covering late last week (though I continued to hold most of my shares, I admit) . Perhaps, some shorts got scared out this morning, but holding will work out this week and even more after later this month. We hear about whisper numbers. Might there be whisper targets, too and might trapped longs of large positions put out whisper targets that might benefit trapped longs?
Is that like the lowered target regarding KORS from an analyst last week. That analyst lowered the target from over 100 to 98! The stock is under 80 after a pre-market reversal after the report.
If someone bought CRM on Friday, selling at this price would be a gain. IMHO, this is not the time to buy CRM and especially not a time to buy more. Do you really take all targets seriously?