CRM: The debate between rational perfect markets and technicals. This might seem a digression, but I would love your technical opinion on one stock that has mystified me and any rational mind. CRM, trailing PE 168, forward 78 (that's non GAAP, 140 PE after options cost). One of Cramer's Candies, probably the most exorbitant valuation out there. One reason for its gravity-defying trajectory has been FMR (Fidelity MR) as a loyal and large supporter,the massive buyer of last resort. In April they hit 15% of outstanding shares owned. I reckon this is, for Fidelity, an internal ceiling for a mid cap stock (Mkt cap $11bn) as a prudential internal guideline (their ownership is spread amongst a number of fidelity funds). Very recently there seems to a big shift in the computer algorithm trading CRM. I am not a technical analyst but I would love your opinion. As for fundamentals, there is no rational basis, even after the most euphoric assumptions for this stock to be above $65 (current price $91 or a 30% extreme overvaluation).
So 2 questions:
-Could Fidelity have an internal ceiling as a group for owning a small stock?
-Has the trading pattern or technicals changed very recently for CRM?
Disclosure: short CRM