Stock Research Report for CRM as of 9/8/11 - Chaikin Power Tools

Page 1

Salesforce.Com (CRM)

Price: $125.45

Industry: Computer Software-Services Chaikin Power Gauge Report | Generated: Thu Sep 08 17:08 EDT 2011 CRM Salesforce.Com

$125.45

Power Gauge Rating

CRM - Very Bearish TM

The Chaikin Power Gauge Rating for CRM is very bearish due to very poor financial metrics and negative expert opinions. The rating also reflects bullish price/volume activity.

Financial Metrics

CRM's financial metrics are very poor due to a high price to book value ratio and high price to sales ratio.

Earnings Performance

Price/Volume Activity

Expert Opinions

News Sentiment Rating

Neutral CRM Salesforce.Com

September 07, 2011

TM

Chaikin Sentiment Gauge for CRM is neutral. Stories concerning CRM have a balanced or neutral sentiment.

News Sentiment :Neutral

Power Trend - 5 Year Chart

The Power Gauge distills a 20 factor model into a concise picture of a stock's potential.

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High Potential

Neutral

Low Potential

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Financials & Earnings

Financial Metrics

Financial Metrics Rating

Very Bearish

LT Debt/Equity Ratio

CRM's financial metrics are very poor. The company may be overvalued and has relatively low revenue per share.

Price to Book Value

The rank is based on a low long term debt to equity ratio, high price to book value ratio, low return on equity, high price to sales ratio and relatively low cash flow.

Return on Equity

Price to Sales Ratio

Business Value

Assets and Liabilities

Valuation

Returns

Ratio

TTM

Ratio

Ratio

TTM

Current Ratio

0.61

Price/Book

11.13

Return on Invest

4.0%

LT Debt/Equity

0.39

Price/Sales

10.14

Return on Equity

4.8%

Earnings Performance

TTM

Earnings Performance Rating

Neutral

Earnings Growth

CRM's earnings performance has been neutral. The company has a history of strong earnings growth and experienced relatively poor earnings growth in the past 12 months.

Earnings Surprise

Earnings Trend

The rank is based on high earnings growth over the past 3-5 years, a relatively poor trend in earnings this year, a relatively high projected P/E ratio and consistent earnings over the past 5 years.

Projected P/E Ratio

Earnings Consistency

5 Year Revenue and Earnings Growth

Revenue(M) Rev % Growth EPS EPS % Growth

EPS Estimates

01/07

01/08

01/09

01/10

01/11

497.10

748.70

1,076.77

1,305.58

1,657.14

60.43%

50.61%

43.82%

21.25%

26.93%

$0.00

$0.16

$0.36

$0.65

$0.50

-

-

125.00%

80.56%

-23.08%

EPS Surprise

Factor

Actual EPS Prev

EST EPS Current

Change

$0.16

$0.03

-0.13

Quarterly EPS Yearly EPS Factor

$0.50

$0.20

-0.30

Actual EPS Growth

Est EPS Growth

Change

40.61%

29.00%

-11.61

3-5 year EPS

EPS Quarterly Results Estimate

Actual

Difference

% Difference

FY

Qtr 1

Qtr 2

Qtr 3

Qtr 4

Total

Latest Qtr

$0.03

$0.07

$0.04

1 Qtr Ago

$0.05

$0.06

$0.01

133.33

01/09

$0.15

$0.17

$0.17

$0.16

$0.65

20.00

01/10

$0.14

$0.11

$0.16

$0.08

$0.49

2 Qtr Ago

$0.12

$0.12

3 Qtr Ago

$0.19

$0.20

$0.00

0.00

01/11

$0.00

$-0.03

-

-

-

$0.01

5.26

Fiscal Year End Month is January.

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Price Trend & Expert Opinions Price/Volume Activity

Price/Volume Activity Rating

Bullish

Relative Strength vs Market

Chaikin Money Flow

Price and volume activity for CRM is bullish. CRM is experiencing sustained buying and has outperformed the S&P 500 over 26 weeks.

Price Trend

The rank for CRM is based on its price strength versus the market, positive Chaikin money flow, a negative Chaikin price trend ROC and an increasing volume trend.

Price Trend ROC

Volume Trend

Relative Strength vs S&P500 Index

Chaikin Money Flow

Chart shows whether CRM is performing better or worse than the market.

Chaikin Money Flow analyzes supply and demand for a company's stock.

Price Activity

Price Activity

Factor

Value

Factor

Volume Activity Value

Factor

Value

52 Week High

159.32

% Change Price - 4 Weeks

-2.16%

Average Volume 20 Days

3,748,005

52 Week Low

99.91

% Change Price - 24 Weeks

2.73%

Average Volume 90 Days

2,674,183

% Change YTD Rel S&P 500

0.32%

Expert Opinions

% Change Price - 4 Wks Rel to S&P

-8.52%

% Change Price - 24 Wks Rel to S&P

11.21%

Chaikin Money Flow Persistency

69%

Expert Opinions

Bearish

Earnings Estimate Revisions

Expert opinions about CRM are negative. Insiders are not net buyers of CRM's stock and short interest in CRM is high.

Short Interest

Insider Activity

The rank for CRM is based on a high short interest ratio, insiders not purchasing significant amounts of stock and optimistic analyst opinions.

Analyst Opinions

Relative Strength vs Industry

Earnings Estimate Revisions Current Current Qtr Next Qtr

0.03 0.08 Current

Current FY

0.20

Analyst Recommendations

7 Days Ago % Change 0.03 0.08

0.00% 0.00%

30 Days Ago % Change 0.24

-0.04

Factor Mean this Week Mean Last Week

EPS Estimates Revision Summary Value

Buy 0.00

Mean 5 Weeks Ago

Buy

Last 4 Weeks

Down

Up

Down

Curr Qtr

0

1

7

3

Curr Yr

1

1

5

8

Next Qtr

1

1

4

8

Next Yr

2

3

4

8

Buy

Change

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Last Week Up

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The Company & Its Competitors

News Headlines for CRM

CRM's Competitors in Computer Software-Services Company

Power Gauge

Historic EPS growth

Projected EPS growth

Profit Margin

PEG

PE

Revenue(M)

CRM

40.61%

29.00%

1.46%

21.63

278.80

1,657

MSFT

9.84%

11.08%

33.10%

0.84

9.85

69,943

CA

3.31%

12.00%

18.64%

0.83

10.61

4,429

INTU

10.53%

14.00%

16.46%

1.30

21.80

3,851

ORCL

20.32%

15.00%

23.99%

0.80

13.03

35,622

SYMC

8.78%

9.00%

9.49%

1.26

13.37

6,190

SAP

10.55%

13.00%

14.45%

1.08

15.65

17,003

INFY

23.83%

16.80%

24.50%

1.02

18.47

6,041

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Company Details

Company Profile

SALESFORCE.COM THE LANDMARK ONE MARKET STREET STE.300 SAN FRANCISCO, CA 94105 USA Fax: 415-901-7040 Website: http://http://www.salesforce.com Full Time Employees: 5,306 Sector: Computer and Technology

Salesforce.com is the market and technology leader in on-demand business services. The company's Salesforce suite of on-demand CRM applications allows customers to manage and share all of their sales, support, marketing and partner information ondemand. The Salesforce Platform, the world's first on- demand platform, enables customers, developers and partners to build powerful new on-demand applications that extend beyond CRM to deliver the benefits of multi-tenancy and The Business Web across the enterprise. The Salesforce Platform allows applications to be easily shared, exchanged and installed with a few simple clicks via salesforce.com's AppExchange directory. Customers can also take advantage of Successforce, salesforce.com's worldclass training, support, consulting and best practices offerings.

Power Gauge Ratings are created using a relative ranking system that assigns a rank of 0 to 100 (100 being the highest) to each stock in the universe. Rank is calculated by evaluating each of the stocks factors and combining them into a single number using a weighting formula. A stock's rank ranges from 100-0, where 100 is the strongest, and a rank of 95 indicates the stock is better than 95% of the stocks in the universe. Chaikin Stock Research(CSR) is not registered as a securities broker dealer or investment advisor with either the U.S. Securities and Exchange Commission or with any state securities regulatory authority. CSR is not responsible for trades executed by users of this research report, our web site or mobile app based on the information included herein. The information presented in this report does not represent a recommendation to buy or sell stocks or any financial instrument nor is it intended as an endorsement of any security or investment. The information in this report is generic by nature and is not personalized to the specific financial situation of any individual. The user bears complete responsibility for their own investment research and should seek the advice of a qualified investment professional before making any investment decisions. Copyright (c) 1978-(Present) by ZACKS Investment Research, Inc ("ZACKS"). The information, data, analyses and opinions contained herein (1) includes the confidential and proprietary information of ZACKS, (2) may not be copied or redistributed, for any purpose, (3) does not constitute investment advice offered by ZACKS, (4) are provided solely for informational purposes, and (5) are not warranted or represented to be correct, complete, accurate or timely. ZACKS shall not be responsible for investment decisions, damages or other losses resulting from, or related to, use of this information, data, analyses or opinions. Past performance is no guarantee of future performance. ZACKS is not affiliated with Chaikin Power Tools. This report from Chaikin Power Tools is for informational purposes only and is not a recommendation to buy or sell securities.

LM 2.3 DS 3.0 LS 2.1

Data Provided by ZACKS Investment Research, Inc., www.zacks.com

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