Snag this opportunity in Salesforce

I think this decline constitutes nothing more than profit-taking.

By Jim Cramer Nov 19, 2013 11:32AM logoArrow Down © Photodisc, SuperStockHow can (CRM) be down? If it is so great, why is it selling off? That's a bit of the theme that I was hearing during after-hours trading after the company reported its record quarter.


To me the answer is simple: The stock's had a run, and profit-takers are out in full force.


But there is an amazing self-fulfilling prophesy that goes on in these high-multiple stocks. People immediately begin to poke holes at the stock because it is going down.


Now, I am sure some will argue that no stock goes down if there isn't something wrong. But this year we have seen so many tech stocks get hit first, only to witness them rally a few days later. I think that's what will happen here, too, given Salesforce's $1 billion in sales, huge backlog, terrific unearned income and lots of incredible acceleration in revenue growth from the Exact Target acquisition. It's funny – the latter was derided as nothing more than an email marketing company. But, after watching the Exact Target team show me its soup-to-nuts approach to selling cars for Ford (F), I don't think the "email marketing" derision holds much water.


Now Salesforce stock is up 32 percent. That's not outrageously higher, but it is enough to warrant some attempts to color the quarter, and for others to be nervous in their thorough failure to understand what the company actually does.


No matter -- once again this stock, which has been such a huge winner, is going to give you an opportunity to do some buying, and I think it should be taken.


At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, had no positions in the securities mentioned.

Jim Cramer's headshot

Jim Cramer’s Action Alerts PLUS: Check out Cramer’s multi-million dollar charitable trust portfolio and uncover the stocks he thinks could be HUGE winners. See it FREE today!

More from

Nov 19, 2013 1:08PM

Well the rats in the cage (providing power) here, have about had it...

So I have to go get new Rats or more gas for the generators...Damn power companies and storms.


Plus another funeral for an old friend, they are dropping like flies; Think something is wrong with the water in town ??

Two with Major strokes in last week or so, one dead, one in ICU with the DTs along with bad stroke..

One 82, the other about 64....It's hell to get old..

Be thankful for what you have, while you still have it.

Nov 19, 2013 5:04PM
Breaking News.............. Our Blogger Little Beav has had his identity stolen off the ACA website on 9 separate occasions and 9 different identities.
Nov 19, 2013 3:49PM
Jessica Sanford must be wishing she had her vote to do over again.
Nov 19, 2013 5:31PM

He is like having a whole bunch of people in the room for sure......... Talking to himself... falling in love with his other gender self.......... etc. etc.


Wonder how his surgery went?

Nov 19, 2013 12:14PM

"NEW YORK- As the United States threatened to default on its debt last month, major U.S. banks set up war rooms, spent many millions of dollars on contingency planning and, in some cases, even prepared to underwrite federal government benefits. In a series of interviews with top bank executives, new details emerged about the extent of the contingency planning that was undertaken before and during the 16-day government shutdown and as a potential default loomed. The planning for worst-case scenarios didn't come cheap. JPMorgan alone has spent more than $100 million on contingency planning for U.S. budget crises in recent years including this one, sources close to the bank say. It has reviewed and analyzed thousands of trading contracts, updated computer systems to handle fiscal emergencies, hired consultants, and built new models to figure out what might happen to securities prices. It may not go to waste. The temporary budget agreement that President Barack Obama signed shortly after midnight on October 17 to end the shutdown and lift the default threat, authorizes government spending through January 15 and eases enforcement of the debt limit until February 7, creating the potential for another budget crisis early next year, even as some Republicans vow they will avoid it. With each crisis, the once-unthinkable scenario of a U.S. default becomes a little more real, bank executives said."


Read this differently. Ask yourself WHO we would default on? Banks and the giant dark pool and oligarchy-oriented customers of banks. We would not default on We the People of the United States of America. In fact, the post-apocalyptic moments after default would be simple--- set a NEW currency, distribute it to We the People not They the Wealthy,. revive MAIN Street and make economy AGAIN. 

I DARE YOU Jamie Dimon... to come here on THIS blog and explain it differently. Use as much space as needed to wander and meander but YOU will arrive EXACTLY where my words lead you. YOU spent $100 million in other people's money in your war room, but the FACT remains- there is NO economy, derivatives WILL bust us, financial TYRANNY never ends well and we will STILL need a new currency for a REAL economy regardless of how long YOU stall us. 

JUMP JAMIE... hold Barack's hand and JUMP. we need economy not mental midgets in high places. 

Nov 19, 2013 11:46AM

"The stock's had a run, and profit-takers are out in full force."


What not "scumbags"??

Nov 19, 2013 1:35PM


The wife and I went and saw "Thor:  The Dark World."  We loved it.  If you go, be sure and stay through the end of the credits.  After the credits, there are a few more scenes shown.  I recall they did that with the last Thor movie too.  Yep, they brought back Anthony Hopkins for the film.


If the Postal Service had made the Frank Sinatra stamp an infinity stamp, I'd still be buying them, but they didn't.  Dummies.


Congratulations to Jimmy Johnson for winning the NASCAR Championship.  I placed a $5.00 bet on him to win at the Mirage about six months ago the last time we were in Las Vegas.  So, I'll mail it in and collect my money.  Boorah!





Nov 19, 2013 12:29PM
Ok... Ok... So sometimes the thread gets hijacked by someone you can't pigeonhole. It was interesting however........ you got to admit that.
Nov 19, 2013 2:25PM
Its funny the pictures the dueling media sources put up of the politicians. Can't you just see them picking them out........ Hey look at him pouting in this one..... Perfect !!
Nov 19, 2013 12:03PM

What multiple?

They figure to post a loss this year.

Jim, your treatment was opaque with respect CRM's future. 

Nov 19, 2013 1:48PM
CRM has a forward P/E of 139. Is that not very high?
Nov 19, 2013 1:01PM

I bit on that one NTU, even asked Miss Lilly if she had seen anything on the News trailers this A.M.

Then I read the "last sentence."


V_L....Sorry, but kind of think the "major Banks" set up huge "war rooms" back in the Spring of 2009.

Back in the day, we called it "damage control."


I love it when someone such as Kramer "touts" a stock, then has "no skin in the game."

Many of the players or issues are having "dips and corrections" because of "misses and near misses."

What better time to have an excuse to run or take profits at exorbitant highs..?

Sweet Geezus...

Nov 19, 2013 11:52AM

in the engineering world, control system analysis' covers simple things from how a thermostat works (on at a low temp, reach the right temp, turn off) to very complex systems. 


seeing how algorithms are fully in place by the institutions, i wouldn't be surprised if we don't see some resonance start happening in time.  if by blips within a day, or slower moving blips over several days. 


so if cramer is "seeing things" it might simply be an observation of a control system working in order, or going haywire

Nov 19, 2013 12:41PM
I heard a report a famous actress going by the name of Reese something  had stabbed her husband to death.  Reports were confusing as to what kind of weapon was used.  Earlier reports had said she did it wit her spoon.  :)
Nov 19, 2013 2:52PM
We were not able to post yesterday after the close, but as you saw there was a reason we advised caution during the day...Market up all day until manipulators started doing their thing at 1500 hrs and brought us down...The Dow survived but, the Dow is not the most important index....Today they started doing their thing earlier, we are just trying to hug the flat line but sadly still over 2 hours to go...Volume just as bad as yesterday and crooks alive and well starting to do their thing once again dragging us down...Lets see if we can save anything this afternoon.
Nov 19, 2013 6:22PM
I wish someone would pay me to post...I'll take any kind of position on an issue, they are willing to pay me for.....I'm easy......Do I hear .50 cent or a buck...??
Nov 19, 2013 6:15PM

I thought the Markets were only up 87 or 89% not 90....??

Rome....You really should not concern yourself with other's "thumbs ups."

I don't even worry or care about my own...

Isn't that a Facebook or YouTube thing for people that are worried about being accepted??

Or a show of approval...Like not keeping score at Kid's games..

Or everyone in the League getting a trophy?

I click on one for somebody, about once every week or two; JUST BECAUSE, I kinda like what they thought out or wrote.

And click on one of my own, about once a week; For balance like 2 and 2, or 3 and 3, etc.

Because I like even balance or numbers...Nothing else.

So you don't have to click on mine...I know who and what I am, and not worried about my Ego. 

Nov 19, 2013 10:53PM
  Didn't have time to hang around much here today. Sorry about your buds Tog and right have to appreciate what time we have even the time we have around here. No time to be bitter.  NTU ask for some funnies today. I missed out on that. Didn't get much reaction but that was pretty tricky thread he led off with. Heard a funny situation from a friend a couple weeks ago. When I saw had a black eye  I ask him how it got it. He said he went to church a couple of nights before I saw him and was sitting behind this large woman and when she stood up her dress was pulled  up her crack He thought it looked uncomfortable so he pulled it out. She hit him in the eye with her purse. .   Saw him again a couple weeks later he was all beat up. Ask him what the hell happened to you. Well ,he said, my brother and went to church last night and sat behind the lady that hit me before and when she stood her dress was pulled up her crack and my brother reached up and pulled it out. Well I knew she didn't like that so I tried to poke it back.
Nov 19, 2013 3:45PM
What...more 'advice' from Cramer? Yeesh!  When is this shill going to go back to under the rock he crawled out from?  When is someone going to put a muzzle or a leash on this individual?
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.


StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

124 rated 1
266 rated 2
452 rated 3
702 rated 4
671 rated 5
604 rated 6
640 rated 7
495 rated 8
267 rated 9
158 rated 10

Top Picks




Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.