CRM
CRM approaching BUY level.The move to remote work has found many companies adopting new technologies in order to keep business running. But even as life goes back to a new normal, some systems will likely remain in place due to the added efficiency they can bring to operations. Salesforce is counting on that approach, with its recent announcement that it will acquire the messaging service Slack this week.
Salesforce’s customer relationship management (CRM) platform is used across multiple industries, including retail. The cloud technology supports the selling, strategizing and marketing of commerce in a single centralized platform, which enables users to see all their customers, data and tools in one place. This unified approach can help streamline operations – a critical benefit in a competitive landscape like retail in 2020.
$CRM - Watching the 100 day EMA$CRM
Testing this theory.
$CRM seems to typically be supported by the 50 day EMA. If it fails and also fails the 100 day then the next bullish test is a return to the 100 day.
Historically there has been a return to the 100 day and then a move up or down. (I’m showing support at the trend line but it could find support at the 200 day).
On it’s return to the 100 day if it break through it is bullish, but if it resists it is bearish. If at any point it loses the 200 day support I am bearish
Seems like earnings on Tuesday should propel CRM higher but these last few weeks have seen some good earnings reports be reward with negative stock prices - see $WDAY, $LOW, $HD, $SHOP, etc.
“I’m not an expert but I have watched a lot of youtube videos.”
NYSE:CRM
022. PIGGISH PLAY - LONG Digital Turbine + CRM Earnings StrangleEver wonder what it would be like to have your cake, and eat it too?
Go ask Paylocity - it's the biggest mooch on the street.
Why am I starting with the optional/bonus part of this position?
It is because:
1) APPS technicals are so profoundly bullish that I may just avoid mentioning them entirely in this description, and
2) It's pretty damn funny to observe how parasitic Paylocity's stock price is when it poaches CRM's much-needed volume - only to cut all ties a few hours later, leaving the premises without waking CRM up in the morning.
Anywho, I think we might just have a very affordable, synergistic means of playing CRM's earnings report on Tuesday using Paylocity calls, APPS calls, and CRM puts. If CRM smokes its estimates, Paylocity will most definitely skyrocket given its latest performance and APPS will rip higher if it can hold that unbelievably steep lower trendline.
Seriously - this sort of consolidation is extremely rare for such a young company. It reminds me of how Tesla and Shopify used to be - before fundamentals were discarded for Stocktwit sentiment indicators - except that APPS's early stages seem even bullish-er.
Don't believe me?
Take a look at how both of these monsters grew up around 40 bucks/share and compare them against the top chart. APPS has them beat in every category; particularly its incredible rate of consolidation and ability to recover 4-5 points higher on any given day. While Tesla can do this on a much bigger scale now, it took them forever to get to this point. This stock can do the same damn thing and it's only at 40.
Onto the Pig Play Details:
This is an Options-Only play that allows more risk to be taken because of the offsetting positions. If you want to buy and hold equity, go right ahead but I don't have an offsetting solution for you that would be worth the risk in this spot.
If Monday is choppy and slightly red, wait until the end of the day to enter all three positions simultaneously. There is zero reason to take on the additional risk for some sort of premium scalp if ZM catches a bid before it reports - or something like that.
On the other hand, if it is an insanely bullish day from the start because USD Monopoly Money is recognized as somewhat fraudulent by all of the countries that have been blindly buying our notes, then I'd recommend focusing on entering the APPS calls first and foremost, right on the button.
Now time for the Pig-Specs:
ALTERNATIVE 1: LONG BULL WITH SIMPLE OFFSET (APPS CALLS, IWM PUTS):
APPS (CALLS) - BUY - (45 Dollar Strike, 12/18/2020 Expiration)
IWM (PUTS) - Use about 1/3rd of the capital used to purchase the APPS calls and buy the second strike behind the then-current price and a 12/04 expiration. If you don't like wasting money, I suggest you
ALTERNATIVE 2: LONG COMPLEX SOFTWARE ER STRANGLE WITH (APPS CALLS, CRM PUTS, and PCTY CALLS):
1) APPS (CALLS ) - (same as above), you get to choose how many you want to buy since you are autonomous (unlike Paylocity). Just know that the net cost of the other two positions should roughly equal 75% of the amount allocated to this main long call position.
2) CRM (PUTS) - BUY - (1-2 PUTS, NEAR THE MONEY, EXP 12/04/2020 Expiration)
While these are both stupidly expensive and unlikely to hit, it is a NECESSARY part of this play. You are getting a severe discount on the relatively large number of calls that you wouldn't otherwise receive under 99% of circumstances. The overwhelming odds are that CRM beats and that the market will not tank until the NAS touches new highs. However, pay the premium so that you're hedged all day and avoid getting cute by waiting two hours for a discount.
Naht in this market and don't come crying to anyone if ya go forward unhedged.
3) PCTY (CALLS) - BUY - (220 Strike, 12/18/2020 Expiration)
Allocate 1/3rd of the amount of capital that you just spent on your offsetting CRM puts and purchase these unbelievably beautiful-looking calls that have a ton of implied volatility that will kick up the second CRM reports, a very nice amount of theta to work with, and a strike that can be very easily surpassed this week. Both these calls and the APPS calls are amongst the best deals I've seen all year.
Good Luck Ya Software Nerds.
- Software Appigation Strangler
NASDAQ:APPS
NYSE:CRM
NASDAQ:PCTY
AMEX:IWM
HPE catch some PLTR hype pls?What is HPE?
HPE aka Hewlett Packard Enterprise Company provides solutions that allow customers to capture, analyze, and act upon data from edge to cloud. The company offers industry standard servers for multi-workload computing; mission-critical servers; storage solutions; and solutions for secondary workloads and traditional tape, storage networking, and disk products, such as HPE MSA and HPE XP. It also provides mobility and Internet of Things solutions under the Aruba brand, which include wired and wireless local area network products, such as Wi-Fi access points, switches, routers, and sensors; software products, such as cloud-based management, network management, network access control, analytics and assurance, and location services; and professional and support services, as well as as-a-service and consumption models for the intelligent edge portfolio of products. In addition, the company offers various flexible investment solutions, which comprise leasing, financing, IT consumption, and utility programs and asset management services for customers to facilitate unique technology deployment models and the acquisition of complete IT solutions, including hardware, software, and services from Hewlett Packard Enterprise and others. Further, it invests in communications and media solutions, Hewlett Packard labs, and various business incubation projects. The company serves commercial and large enterprise groups, including business and public sector enterprises; and through various partners comprising resellers, distribution partners, original equipment manufacturers, independent software vendors, systems integrators, and advisory firms. Hewlett Packard Enterprise Company was founded in 1939 and is headquartered in San Jose, California.
This is the cloud division of HP and they been really beaten up this year, i think with the way everything is going, this is worth a lotto for some $13 calls for next year.
If it becomes a runner, it'll be like striking gold.
Major Support $9 area, Resistance $13.89 area
My plan?
With all the hype surrounding cloud stocks this year and that crazy PLTR run, maybe it's worth a lotto for some $13 calls for next year.
If it becomes a runner, it'll be like striking gold.
Salesforce.com - Potential Bullish PivotHey Traders!
Salesforce.com NYSE:CRM has been on my radar today and according to my studies... CRM is giving off a strong bullish signal according to where the price is relative to the Bollinger bands and Keltner channel. I drew a few dots on the chart above to highlight the areas of interest so you can see what I look at. The Cyan dot is just to locate the price when it is between the lower Bollinger bands and Keltner channel, this is the area where I start paying attention for a bullish trade setup. The Magenta dots are for when the price is between the upper Bollinger bands and Keltner Channel bands and is when I start looking for a bearish trade setup. I use the white dot as an entry signal as price has come back within the Keltner channel. White dots following the cyan dots are bullish entry signals, whereas white dots following magenta dots are bearish entry signals. The entry signals are what I consider to be pivot points where the stock may begin to change direction.
However, this strategy does generate false positive signals from time to time. As an attempt to avoid false entry signals, I take into account the trend of the stock. The stock has been trending upward the last 90 days with a net change of +33% (based on closing price 06/19/2020). Therefore, based on the indicators and trend, my assumption is that CRM could move higher. Ideally, I would like to see CRM reach $260 per share within the next 14 trading days... but who knows what could happen.
Keep in mind: The days surrounding the outcome of the U.S. election, market fluctuations, and unexpected news events can send CRM in an unfavorable direction. This idea is not a call to action, nor should it be considered investment or trading advice. The ideas expressed on our TradingView page are for educational and entertainment purposes only.
Leave us a comment below! - Are you bullish or bearish on Salesforce.com?
Salesforce (CRM): Solid Fundamentals and Technical AnalysisSoftware as a Service (SaaS) is at the center of attention due to the Coronavirus pandemic (Covid-19).
Today, I’ll be analyzing the #1 firm in the Customer Relationship Management industry, Salesforce (CRM).
- Salesforce is an extremely quickly growing business, whose founder was an ex-Oracle (ORCL) employee.
- They currently employ the tallest building in San Francisco
- Salesforce was added to the Dow Jones Industrial Average, and became the first Saas company to be listed on the S&P500 index.
What is CRM?
- CRM stands for Customer Relationship Management.
- It’s essentially a software that allows salespeople to manage client info data
- CRM, fundamentally, is a tool to drag new clients, maintain loyal customers, and increase customer value
- Prior to Salesforce, companies such as Oracle (ORCL) and IBM (IBM) had to sell hardware, and the software license of the hardware, which all had tremendous installation costs.
- As a result, CRM was selectively used by few major corporations
- Salesforce revolutionized the marked by making CRM more approachable
- They offered CRM through cloud computing, and became the first company to sell software through cloud computing systems. As such, Salesforce managed to offer CRM at a price 90% cheaper than the original cost
- CRM is effectively used to provide data for artificial intelligence, and machine learning protocols, and is much more closely related to our lives than we know, from a marketing aspect.
Financials
- Despite having been in business for over 22 years, Salesforce shows a 29% yoy revenue growth-
- This is due to their multi-cloud strategy in which they aggressively acquire other software companies
- They reached a record quarterly revenue of $5.15 billion in Q2 2020
- This was mainly due to the explosive demand for work.com, a product that was developed for the Coronavirus pandemic situation.
- For the third quarter, Salesforce speculated a revenue of $5.24 billion, which is a 16% increase compared to last year.
- The company’s free cash flow increased by 22% in Q2, compared to that of last year, and is estimated to generate $35 billion in 2020.
- Salesforces’ Price-to-sales multiple remained at 8-10, indicating that it is relatively undervalued compared to its software counterpart, Adobe.
Business Model
- Salesforce is well known for its aggressive acquisition of cloud related companies.
- By offering marketing, commerce tools, and service cloud to existing Sales Cloud clients, they gather more meaningful data and expand potential client bases
- Over 40% of users use multiple clouds, and these people are responsible for 93% of the company’s revenue.
- Salesforce offers Service Cloud, which is a service that helps customer support and operations management.
- By acquiring Exact Target in 2013, Salesforce has been expanding its marketing cloud base.
- The marketing automatization that Exact Target has, allows Salesforce to incorporate cloud computing to emails, social media, messages, and digital apps
- By doing this, they can accurately track the efficiency of marketing campaigns, and optimize advertisements
- What’s most important to notice about Salesforces’ business model is that just like many other successful businesses, it has managed to establish a cloud ecosystem
- Their AppExchange offers optimized CRM tool kits, and institutional level software
- Salesforce also runs the Lightning Platform, which allows users to develop software that is optimized for their specific industry and business
- Salesforce acquired MuleSoft, a data compiling company, and Tableu, a data analytics company, and this synergy is expected to generate exponential gains in the coming years.
- In essence, Salesforce is capitalizing on an opportunity, during times of a digital turning point, by compiling data and software on a single platform
Technical Analysis
- CRM is currently moving in a clear uptrend, forming higher lows
- It has recently topped out after having been listed on the Dow Jones Industrial Average (DJI), but shows strong support in critical areas
- We are at a point where prices are testing the 0.236 Fibonacci retracement support
- This zone of support is about to converge with the 60 Simple Moving Average (SMA) as well
- The Relative Strength Index is moving towards to the oversold territory, having been at extremely overbought levels at the local top
Conclusion
Salesforce (CRM) is the dominant #1 in the CRM industry. Just as many other successful companies, it possesses a healthy ecosystem, specifically of cloud computing. Fundamentally, it has all the right components of a successful business model, and while the earnings are not as high as we would expect, due to mergers and acquisitions, their profitability can increase significantly over the coming years. Technical analysis also demonstrates a clear uptrend, and a potential buy opportunity.
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Covering Short position #crm
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Markov Model : In probability theory, a Markov model is a stochastic model used to predict randomly changing systems. Markov Models are used in all aspects of life from Google search to daily weather forecast. The randomly changing systems we focus on are the equity, futures, and forex markets. The geometric element of the model is the fractal wave structure you can find on any chart you look at across any market and across all time dimensions.
Our model focuses on the current wave formation (current state)- geometric price formation along with its volume and volatility over a given time period and using that information to predict the future state- future price movement.