The stock I'm looking at today is Salesforce.com (CRM). They're a cloud computing service that lets users access software via the internet. Many companies are moving to cloud computing in order to cut costs. It gives firms an ability to expand or pull back the amount the amount of data storage they use. Fundamentally, they're very strong. Their estimated EPS for 2011 is 1.16, which is a 53% increase over 2010. Mutual funds have also been accumulating shares this year. They closed Friday at $117.42 and it looks like it's going to pull back a bit from here. I like this stock much better at $110 - $112 range. Provided the pullback is mild in volume, they could retrace their upward climb and test $120 again.
There will be some key economic reports due in the coming week. Retail sales are due on Tuesday, jobless claims, PPI and Philly fed are due on Thursday. On Friday, expect CPI and Michigan Sentiment.
Stay cautious and happy trading. Do check out this fun website - Wall Street Survivor. You can develop a fantasy portfolio with $100,00 and compete for cash. It's free, no cost to join or compete and I like that you can test your ideas without the risk. Have fun!
Obligatory disclaimer: This blog is for information only. Past results do not guarantee future performance. All financial decisions involve risk and there are no guarantees. The suggestions above are for informational purposes only and the blogger is not liable for any losses incurred as a result of actual investment activity on the part of the reader.
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