PenName Dave

Salesforce.com Worth Half Its Current Price

Charlie... you certainly could be right... however i would not expect their sales to be flat or decrease. As a re-occurring revenue business, they would have to see a net customer loss for that to happen.
"The company has negative working capital given that it receives ahead of providing the service (on quarterly or annual basis), as result of their growth this increased their operating cashflow."

I guess i don't full understand what you mean there. Receieve's what? cash?

I'm assuming you mean cash... and I'm sorry to "stream of concoiusness" on you... but i think i see your point with that.... they are getting cash up front from their customers (quarterly or annually) before they provide the service.

I don't understand though.. why is their cash flow 7x their earnings consistently? I would guess that if your thesis is correct, you would start to see a significant slowing in cash flow, in advance of a decrease in earnings.

Salesforce.com Worth Half Its Current Price

I was short CRM too.. but covered now..... you have to look at cash flow, not earnings, when valuing their business. They now trade at 10x trailing cash flow.