Jim Cramer's Best Blogs
NEW YORK ( TheStreet) -- Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:
- why Salesforce.com stock should rise; and
- a positive factor for the stock market that too many people are ignoring.
Click here for information on RealMoney, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.
Salesforce.com Deserves to Go Higher
Posted at 2:55 p.m. EDT on Friday, March 1
Salesforce.com (CRM) deserves to be up this much to an all-time high, perhaps even higher. Here's why.
The bears are forever saying that Oracle (ORCL) , Microsoft (MSFT) and SAP. (SAP) are going to crush Salesforce.com. That they have to. They are bigger, they offer a multisuite of products instead of just customer-relations management and they have huge installed bases.
But not only is that not the case, Salesforce.com is taking their customers. As Salesforce wins large deal after large deal, including nine deals of an eight-figure size, these deals aren't just from scratch. CRM's getting huge companies to dump their current systems.
The naysayers have complained for ages about Salesforce's disclosures and accounting. I think that's nonsense. This company has more accounting transparency than any complicated company that I follow. It has a whole primer about how to understand its accounting and I understand that the Securities and Exchange Commission uses it as the benchmark of how to account for difficult-to-understand subscription accounting.
Meanwhile, let's not forget this company reached $1 billion, then $2 billion, then $3 billion in revenue at speeds I have never seen before. Sure, it is "overvalued" in the sense that it is a rich multiple on earnings. But the buyers of stocks like this are thrilled to pay these prices because this 30% growth simply isn't available from any other large-cap company.
Sure, one day Salesforce will stumble. I think it has to. But it sure hasn't yet, and this quarter simply made the bears -- like the relentless negativist at Bernstein -- look downright foolish.
Action Alerts PLUS , which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.
Don't Underestimate the Wealth Effect
Posted at 11:16 a.m. EDT on Friday, March 1
We spend so much time talking about the price at the pump. We try to figure out the impact of the end of the tax holiday. We endlessly try to assess the damper caused by Washington's infighting.
But you know what we don't do? We don't talk about the impact of rising stock portfolios and increasing home prices, the two critical assets for tens of millions of people in the U.S.