CRM – Can Pigs Fly?

So the most bloated stock on the planet reported earnings after hours. No it doesn’t sell burritos… and no it doesn’t have anything to do with coffee. Salesforce.com, a darling of WallStreet since the 2009 rebound, reported after the bell with numbers that came in well above expectations. Not only did it beat revenue numbers and the EPS estimates, it raised guidance for next quarter and the next fiscal year. Good news right?

 

Even Pigs can fly
Even Pigs can fly

 

Well hold on. People were talking about CRM and its 600+ P/E ratio the entire week, and it seems folks got a little weak in the knees when they didn’t see a “Blowout” quarter.

 

Seemed the thing that people focused on was CRM’s bookings, which didn’t grow at it’s normal 30% clip and of course, that was the first question by the analysts on the conference call.

 

Yes, the CEO did sound like he was getting some action from Monica Lewinski as he read his script. But hey, who doesn’t want a CEO to sound bullish about his company?

 

We will see what the verdict on CRM is tomorrow. Bull.. Bear? I do think it will rally after the open. Retail Joe has no effect on the stock price, and those will be the ones who scream “Bloated Pig” and sell their 71 shares.

JimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of optionmillionaires.com, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

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