Another day…another rumor on Salesforce.com (CRM) (May 05, 2015)
I’m back at Salesforce ( NYSE:CRM ). I was talking about this yesterday and I wanted to come back to it because of what happened today. I had mentioned, look, this was last week; the rumor was that Oracle ( NYSE:ORCL ) was going to be buying Salesforce ( NYSE:CRM ). The rumor, and we all know how wonderful and reputable all the fine folks on Wall Street are about only putting out rumors that are actually true. Right?
So you really want to get the edge there and get the latest rumor so you can get it before everybody else does; oh, that’s right, we are everybody else. So everybody buys this stock and I’d mentioned yesterday, “Look, this is not really the time you want to buy this stock, the air is being let out of this thing, wait for more of a pullback for a lower risk buy. Or alternative, of course, a move to a new high, which tells you something is truly going on.
So then we get today, we get, instead of a pullback the stock was, let’s look at it on an intraday basis, the stock popped up first thing in the morning and then was drifting. Well the guy who had a bunch of shares of Salesforce ( NYSE:CRM ) but needed to get out of it last week, probably did get out of a lot of it because he’s the guy that started the rumor, whoever that is, somebody else got stuck with it. Or maybe he had more so, “Well hell, lets just do that again.” So they start another rumor, so much so that the stock is halted because of this unusual activity.
The stock pops 6 percent; Boom! Just like that, big volume, pops 6 percent, then CNBC reports, but it’s Microsoft and they weren’t adding fuel to the fire or anything like that they’re just reporting it. When a stock pops like this they’re going to have to say something. The point is, the stock starts gyrating around, my bet is the dude who bought this stuff here was selling it right here; hate to tell you that but that’s the way this game is played, it’s a contact sport, as I say wear a cup.
So now this has moved lower, I will tell you the same thing I said yesterday, I’ll stand by this: this is not a stock you want to be buying, not right now, there’s too much going on. If you want to take a shot, be speculative, then go ahead, buy the stock and hopefully somebody’s buying it for $100.00. Who knows maybe Michael Dell will come back in to the picture, no, he won’t. The bottom line is this is a stock that’s going to move on speculation, on rumors, on somebody with a lot of money wanting to hose the public. Not that that ever happens or anything, but it could theoretically, right?
So just be careful about this stock. Fundamentally the company’s solid. Technically, on a weekly basis, the stock is solid, I mean this is a stock that I would want to buy I just can’t condone buying it here. Buy it here and get lucky but you could buy it here and get unlucky as well. I would still say let the stock settle down, if somebody buys it well I guess you didn’t get involved. But wait for your entry, you want to take your best entry or none at all.
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