Comments on: Salesforce.com (CRM) – Ticking Time Bomb

By: ZachStocks » Blog Archive » Salesforce.com (CRM) - When Shorting, Timing is Everything

Mon, 10 Mar 2008 12:37:32 +0000

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By: buzzly

buzzly — Fri, 15 Feb 2008 19:57:01 +0000

I doubt Oracle would buy SFDC for such high price. Larry would buy Netsuite first and Netsuite has better functionality and platform capability. Besides he could double-dip with Netsuite–sell high to the public and buy low for ORCL.

On the technology front, Oracle would want to buy a future SaaS platform but SFDC is not it. It is just a collection of scripting tools running on top of Oracle DB which, in reality, provides most of the SFDC limited “platform” functionality. And Oracle know this well.

On the customer end, unlike other acquistions which Oracle can justify the purchases because they can reasonably control the acquired customer base and march them down a pre-defined migration path, that’s not the case with SFDC’s customers. SFDC customers are less sticky and they may just leave, and they do leave all the time.

By: Options Strategery

Options Strategery — Thu, 14 Feb 2008 22:14:15 +0000

The fact that they need to create a new pricing model to drive topline growth is worrisome. The prices for Saleforce seats is already ridiculously low. The customers they are now going after are the ones that need lots of hand holding and can’t afford it.

Hope you’ll keep us up to date when the short opportunity arrives.

By: Borisb

Borisb — Thu, 14 Feb 2008 03:22:03 +0000

so the price to sales ratio is far out?

By: Tom Greenberg

Tom Greenberg — Wed, 13 Feb 2008 20:16:42 +0000

The latest rumor where Salesforce.com allegedly offered itself up for sale to Oracle is nasty, it might’ve increased their stock price for now, but many customers are very worried about it. Most small customers of Salesforce.com (the average customer ha 21 seats) will end up thinking about switching to SME friendly vendors rather than dealing with an Oracle hungry sales dude.

I only can see this news as good for the rivals of Salesforce.com such as Salesboom.com, RightNow, Entellium, etc.

By: Jonnoarmo

Jonnoarmo — Wed, 13 Feb 2008 19:12:46 +0000

It is always interesting to read postings on IPOs especially ones that have held up in such volatile markets. Each IPO is different in its trading pattern and ability to stay above its issue price. Some examples are VMW and IBKR. I am just curious as to your opinion on Netsuite. It has come down significantly off its highs and really only got as high as it did because of Mr. Bob Pasani care of his big mouth. I could not believe my eyes how momentum propelled it off his comments. Im also sure the market makers got caught with their pants down lending out the stock. Netsuit reports today and CRM next week. Any life left to Netsuite? I dont believe it is valued quite as richly and should have reached these levels a long time ago.