Charles Goldblum

Cramer's Mad Money - When Obama Stumbles, Stocks Soar (9/20/09)

Re CRM raising guidance:
EPS guidance raised by 1c/share, stock-based compensation guidance cut by 3c/share - hard to explain considering they haven't cut headcount.

Salesforce Delivers Strong Second Quarter, Raises Outlook

Is 34x FCF the right price for a company whose bookings aren't expected to grow this year?
Furthermore, now that their tax loss carryforwards have been used, their cash flow is unlikely to rise next year either.
Doesn't a growth company need to grow?
We've seen this move before (see Siebel, i2, etc.), it doesn't end well.

Review of Current Losing Positions: NZT, ACAS, SKM, GE

TKTK -
For good order's sake, I do not own, nor am I short, ACAS. None of my clients have a position in ACAS.

I merely am pointing out aggressive accounting tactics used by ACAS and others. Will the stock go up or down, I don't know. I advise steering clear of operators such as these. I'm not an expert in ACAS, but paraphrasing Warren Buffett, in investing one need not swing at every pitch. For the reasons stated here and above, I'd advise passing.

Regarding your inflammatory remarks about losing people money, you can find my firm's name through my blog. On my company website I have quarterly newsletters showing verified performance of a composite of client accounts. I submit that my client recommendations have not lost "1000's of people...lots of money".

You're entitled to your opinion. In investing, it's important to do your homework first.

Review of Current Losing Positions: NZT, ACAS, SKM, GE

Sorry about republishing this, but here's my info - so I'm not anonymous.

I, and my clients, own SKM. You'll be fine here, if not excited. Double-digit free cash flow yield is safe, risk is only what company will do with this $. Sell-off of Helio is a plus.
Sell ACAS. Bad accounting. Bad valuations of its investments. Will continue to fall. For the script on this one, read David Einhorn's book, "Fooling Some of the People All of the Time"

Review of Current Losing Positions: NZT, ACAS, SKM, GE

I, and my clients, own SKM. You'll be fine here, if not excited. Double-digit free cash flow yield is safe, risk is only what company will do with this $. Sell-off of Helio is a plus.
Sell ACAS. Bad accounting. Bad valuations of its investments. Will continue to fall. For the script on this one, read David Einhorn's book, "Fooling Some of the People All of the Time"