salesforce.com, inc. (CRM)

jeffdevault (< 20) Submitted: 3/02/08 3:00 PM : Start Price: $59.99 CRM Score: -17.70

Since March 2005, Marc Benioff, founder and CEO of Salesforce.com, has been selling stock at a blistering pace. 10000 shares a day!!! These transactions have netted him 455 MILLION dollars!! http://www.secform4.com/insider-trading/1294693.htm





Also his second in command, Steve Cakebreak has netted ~18 million. The basis for his option exercises was $1.1.


http://www.secform4.com/insider-trading/1254015.htm





With such huge payoffs you would think Benioff & co. have delivered ginormous profits....Unfortunately this is not the case:





Net Income (since going public)


2004 - 4 million


2005 - 7 million


2006 - 28 million


2007 - NOTHING


2008 - 18 million


TOTAL: 57 MILLION





So Salesforce.com has only generated 57 million in actual income in the past four years, yet surprisingly Benioff's made out with 455 million, and is making 600K each day by selling 10000 shares at the current stock price of ~$60!! Something's rotten in Denmark I tell ya....





Looking at it another way, for every $1 in Salesforce.com income, Benioff has pocketed $8 in inflated stock sales!! Sweet deal! Don't you wish you could give people dollar bills and get eight back in return??





At the end of the day, if Benioff has cashed out a substantial portion of his stock, and the company--because of competition, a slowing economy, a changing marketplace, or some other unknown--fails to meet the expectations of future profitability that's baked into the stock, then we the investing public will have been duped yet again....

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