The Actual Recommended Trade…..
** OPTION TRADE: Buy CRM
MAY 28 2021 220.000 CALLS at approximately $5.70.
(actually bought for $3.60)
The Days Trading Explained…..
Options Members” entered a Salesforce weekly options trade
on Monday, May 17, 2021 at 12.30pm – the low point for the
day due to the pullback - for $3.60.
On Tuesday, May 18, the price of the
option was already up to $4.99 – a profit of 39%.
However, on Wednesday May 19, after the
upgrade, Salesforce option trade climbed to $7.32 – an excellent profit of
A new options trade may be considered as
the catalysts still apply and are being added to!
Why The Trade Recommendation On Salesforce?
Salesforce stock is
down, but is certainly not out. Since the start of the year tech stocks have
taken two legs down, in late February and now, in early May. CRM stock has
joined the party both times. It’s down 3% on the year, while the average
S&P stock is up 11%.
performance is almost identical to that of Apple, the market’s largest
company, only slightly more pronounced.
It’s due to
investors rotating out of expensive stocks and into those benefitting from the
end of the pandemic or Biden’s Administration’s infrastructure plans. Even with
this latest fall, Salesforce stock sells at 49 times earnings.
pandemic was on, investors piled into the few names that were making money, and
cloud application stocks like Salesforce were among those names. CRM stock
peaked at $281.25 per share in late August into early September. Over the last
year you’re still up 32%.
The Major Catalysts for
The Trade on salesforce.....
on Thursday, May 27, 2021.....
projected to report earnings of $0.88 per share, which would represent
year-over-year growth of 25.71%. Meanwhile, the Consensus Estimate for revenue
is projecting net sales of $5.88 billion, up 20.9% from the year-ago period.
For the full
year, the Consensus Estimates are projecting earnings of $3.44 per share and
revenue of $25.7 billion, which would represent changes of -30.08% and +20.94%,
respectively, from the prior year.
Capital, an investment management firm.....
Growth Fund, in its Q1 2021 investor letter, mentioned Salesforce,
and shared their insights on the company. salesforce.com, inc. is a San
Francisco, California-based software company that currently has a $195.3
billion market capitalization. Since the beginning of the year, CRM delivered a
-4.79% return, while its 12-month gains are up by 23.66%. As of May 13, 2021,
the stock closed at $211.86 per share.
Here is what
Polen Focus Growth Fund has to say about Salesforce in its Q1 2021
"We opportunistically increased
our weighting in Salesforce.com. After management announced the company would
acquire Slack for approximately $28 billion, a high purchase price, shares came
under significant pressure.
We believe the Salesforce-Slack
strategic vision is on point, and although the purchase price is high in
absolute dollars, it represents less than 15% of Salesforce’s market
capitalization. We maintain an optimistic view of Salesforce’s business, its
competitive positioning within enterprise software, and the rationale behind
the Slack acquisition. We expect continued earnings and free cash flow growth
many years into the future."
estimates vary, the consensus is that CRM remains a double-digit growth
opportunity. CRM software is used by consumer-facing businesses to handle the
logging of customer information, oversee online marketing campaigns, address
service issues, and can even predict which customers might purchase new
products and services. CRM is a logical choice for retail and service-based
companies, but is finding a home in areas you might not expect, such as healthcare
and financial companies.
is absolutely dominant when it comes to providing cloud-based CRM solutions. An
IDC report showed that it held almost a 20% share of global CRM revenue in the
first-half of 2020. Its four closest competitors don't even add up to
salesforce's share on a combined basis.
is in the midst of acquiring enterprise communications platform Slack
Technologies in a $27.7 billion cash-and-stock deal. Assuming the deal closes,
Slack will provide Salesforce with a jumping-off point to cross-sell its CRM
solutions to small-and-medium-sized businesses.
360 for Industries.....
the company introduced Digital 360 for Industries. The platform helps companies
deliver better experiences faster with industry apps and developer tools. It
can be deployed for consumer, health care, and financial services segments
Investment Research lowered salesforce.com from a “hold” rating to a “sell”
rating and set a $232.00 price objective on the stock. in a research note on
Monday, March 1st.
lowered salesforce.com from a “buy” rating to a “hold” rating in a research
note on Wednesday, March 24th.
- The Goldman
Sachs Group upgraded salesforce.com from a “buy” rating to a “conviction-buy”
rating and set a $315.00 target price on the stock in a research note on
Monday, March 8th.
- Piper Sandler
decreased their target price on salesforce.com from $242.00 to $240.00 and set
a “neutral” rating on the stock in a research note on Thursday, March 4th.
Wolfe Research started coverage on salesforce.com in a research note on
Wednesday, April 28th. They issued an “outperform” rating and a $270.00 target
price on the stock.
investment analyst has rated the stock with a sell rating, eight have issued a
hold rating, twenty-six have issued a buy rating and three have issued a strong
buy rating to the company’s stock. Salesforce has a consensus rating of “Buy”
and a consensus target price of $268.49.