Sunil Shah

Salesforce.com: Pricey and Coming Down Fast

'Paradigm shifts' have one nasty drawback- the shifter usually ends in the garbage heap. CRM has surprisingly managed to keep share price above 30 in this equity meltdown, the only rationale being its cashflow (the pe OF 100 simply could not have survived this carnage). BUT that cashflow does not account for all the shares they issue to staff (it actually adds to cash) to retain them, in lieu of normal salary. Well, now most of the recent options are under water (price down about 40% ytd and falling) we'll see how secure their people are, and how much more old-fashioned salaries they have to pay. Force.com is wonderful for young trendy software people who cant get into the mainstream, but how many applications will be commercialised? Its laughable, they tout their new alliance with facebook and its 127m users- tell me dear bend-my-ear-off, how do propose to convert facebook into commercial dollars, have you any idea what facebook people do and do you think they are willing to pay for it!!! shareprice will be below 15 by year end. I'm banking on it!!