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Salesforce.com Grabbing Attention in the Financial Markets

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May 18, 2010

Salesforce.com Grabbing Attention in the Financial Markets

By Susan J. Campbell, TMCnet Contributing Editor


Customer service software provider Salesforce.com appears to be capturing attention in the financial world. In a recent Schaeffer's Investment Research piece, writer Elizabeth Harrow referenced a fresh batch of bullish notes on a variety of companies, including Salesforce.com (News - Alert) Inc.



As of Monday afternoon, Salesforce.com was off more than 1 percent, despite a price-target boost from Caris & Co. Backed by its "buy" rating, the firm lifted its price target from $87 to $100. Overall, analysts appear to be upbeat towards CRM. In fact, Zacks has reported 19 "buy" or better ratings, 11 "holds" and zero "sells".

Traders appear to be less enthusiastic, however, even in spite of CRM's long-term uptrend seen in its 10-week and 20-week moving averages. Harrow refers to the stock's 10-day International Securities Exchange, or 'ISE,' put/call volume ratio of 2.70 ranks in the 97th annual percentile, and a healthy 8.9 percent of the stock's float as being sold short.

She noted that if these skeptics are eventually forced to capitulate to CRM's uptrend, the stock stands to gain from a fresh influx of buying pressure. It could all depend upon the force of the pressure on either side as to how this will play out in the market.

In the meantime, the buzz in the industry still surrounds Salesforce.com as a result of the value the company delivers in the cloud computing space. Salesforce.com continues to form solid partnerships with key players, delivering enhanced value to those operating in the Salesforce cloud.

In other Salesforce.com news, the company was recently compared to Microsoft (News - Alert) CRM. While the Microsoft offering is often an easy choice, this comparison was designed to provide the business owner with another view of the products to determine if cheaper is really the best option.

Last week, Saasmaint.com introduced Saasmaint Essentials on Force.com, Salesforce.com's CRM cloud computing platform, delivering maintenance management capabilities in the cloud to customers.

Earlier this month, Navatar (News - Alert) Groupannounced a free Salesforce implementation and support for financial services firms. Officials with Navatar said that a financial firm can get pre-built CRM and operations solutions for mutual funds, hedge funds, capital markets, private equity, mergers & acquisitions and placement agents, running on Salesforce.com's platform, from the company.

In April, Saleforce.com purchased Jigsaw for $142 million in what was called, "an acquisition that seems to have actual content," and not just a way for Salesforce.com "to spend some of that half billion they put together." That's the opinion of CRM guru Paul Greenberg, one of the small handful of genuinely must-read CRM observers.


Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan's articles, please visit her columnist page.

Edited by Kelly McGuire







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