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$68.70 -0.52 (-0.75%)
5/16/2008 4:04 PM

salesforce.com, inc. (CRM)

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The Company is a provider of application services that allow organizations to easily share customer information on demand. It also provides CRM service to businesses of all sizes and industries worldwide.

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Avatar SaltyGenes (89.22) Submitted: 5/06/08 8:16 PM : Underperform Start Price: $70.27 CRM Score: 2.73

We use SFDC. It is an amazing product and they will be around for a very long time. That said, I wouldn't own the stock at this price or anything near it. Reasons:

1. Obviously, it is hard for any company that big to grow quickly enough to justify a 400 PE,

2. They will get nipped at from the bottom by dozens of cheaper competitors (Sugar, Zoho, etc.) and from the top by the big guys (Sage, SAS, MSFT)

3. SFDC has a huge liability in that it holds mission critical data for thousands of companies. If google went down for a day, no one would really care. If SFDC goes down for an hour, they hear about it for years and their stock hears about it within minutes.

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