Market Outperform - Price 25.62 on Nov. 12
by JMP Securities

Interesting data point: Jim Steele [chief customer officer and president of international operations] became co-president of worldwide sales in early October. Steele is a superb enterprise-sales leader. Yet mid-quarter changes in sales leadership usually aren't a good sign about how business is trending. While we like the strategic direction and innovative nature of salesforce.com, investors may want to wait until after the October quarter is reported Nov. 20 before [buying]. We're maintaining our FY09 GAAP EPS of 30 cents [matching consensus], and reducing our FY10 GAAP EPS estimate from 60 cents to 56 cents, versus consensus 57 cents. In light of on-demand comps compression, we're reducing our target from 60 to 40, representing '09 EV/revenue multiple of 3.3 times; peer-group median is 1.6 times. Market cap: $3.1 billion.

Cramer Interviews Salesforce.com CEO:
In this October 7 'Mad Money' clip Jim Cramer and Mark Benioff give insight on Salesforce.com.

Click here to watch the video.

Mad About Options: Bullish Ameritrade?!?: The Mad About Options crew reviews Jim Cramer's recent bullish comments about TD Ameritrade and offers options strategies for traders and investors. Also hear options ideas for Saleforce.com and Exxon Mobil.

Click here to watch the video.

From a recent Mad Money show: "They guided lower last time and I want to hear from their CEO before I recommend it again."

Cramer: Gotta Wait on Google: Even though estimates are bullish, Jim Cramer says he won't buy Google ahead of the earnings report.


Click here to watch the video.

From a recent Mad Money show:

"Tech is so awful right now. There isn't a single tech stock doing well. Salesforce is doing well, but no one cares. I want to stay away from that one."

He also would consider a short-term trade in some old technology names like Research In Motion (RIMM), Salesforce.com (CRM), Hewlett-Packard (HPQ), Google (GOOG) and IBM (IBM).

Obviously anything semiconductor or software -- Salesforce.com (CRM) and Oracle (ORCL) are best -- because analysts want to get behind them and will.

has really done well

Salesforce.com (CRM) upgraded to Buy rating from Hold at Jefferies. Price target jumps to $77 from $49 and 2008 eps estimates lowered to $0.33 from $0.35.

selloff to continue

Again, great business but valuation is way too high

From Barron's 6-25-07:

"Salesforce.com shares look pricey after rising threefold in three years. And now that the small company is competing with behemoth Oracle, taking profits is sensible...not to mention the CEO has unloaded about 38% of his shares in the past two years."

Not everyone loves it. These folks are definitely spending some money. Growth play. True believers only.

OVERVALUED

Overvalued!!