• November 18, 2011

Is Salesforce.com the Next Short-Seller’s Victim?

by Donald Harder

In an environment where high-flying, overvalued momentum sweethearts like $NFLX, $OPEN and $GMCR have had their share price plundered by short sellers willing to take a shot and restore a bit of reality, is $CRM the next company about to get taken a part at the proverbial seams?

Fundamental Case for $CRM

Before we take a look at the charts, consider a couple of major factors that leave Salesforce.com’s share price vulnerable to a serious security breach.

• Insider selling
• Accounting games
• Losing money
• Trading 732 times reported earnings

Technical Analysis

After yesterday’s response to earnings, its at risk of a weekly sell signal and the first lower low in three years.

The next $NFLX or $OPEN?

You be the judge…

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Tags: crm fundamentals crm stock pick crm technical analysis salesforce.com short sellers