by Ian Harvey
February 12, 2019
salesforce.com, inc. (NYSE:CRM)
Cloud-based customer relationship management company salesforce.com, inc. (NYSE:CRM) has shown us that it has plenty of room for further growth.
And “Armchair Trader Members” have made profits of 100% in less than a week on this upsurge. For those traders that haven’t sold yet, the potential profit stands at 184%; and more may be expected! Check out the new trade to consider!
Also, note that analysts are starting to come to the party, with TheStreet upgrading salesforce.com from a “c+” rating to a “b” rating in a report on Thursday, January 31. At present there are thirty-six analysts that have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Salesforce.com presently has an average rating of “Buy” and an average price target of $170.38.
Salesforce is benefiting from strong growth across its product portfolio. Rapid adoption of its diverse cloud offerings given the growing demand for digital transformation remains the key catalyst. Acquisitions have always been one of Salesforce’s key growth strategies. Over the last two years, the company has closed a number of takeovers worth a combined deal value of over $4 billion.Estimates have been stable ahead of the company's Q4 earnings release. The company has positive record of earnings surprises in recent quarters.
GREED CAN BE THE UNDOING OF A GOOD PROFIT!
PATIENCE PAYS OFF!
YOU NEED TO BE IN TO PROFIT!
…….from……““Armchair Trader Series” Recommendations
The Details Presented Previously……..
Aerospace giant Boeing Co (NYSE:BA) is scheduled to
report before the market opens. The consensus earnings estimate is $4.52 per
share on revenue of $26.92 billion; but the Whisper number is higher at $4.61
per share. Consensus estimates are for earnings to decline year-over-year by
5.83% with revenue increasing by 6.12%.
This airplane builder has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 3.27%.
For over 100 years, Boeing has kept its eye on the skies. From planes to rockets, the aerospace company has come a long way since William Boeing began building 'flying boats' for the U.S. Navy in 1916.
While Boeing's technology has certainly evolved, it has maintained its relationship with the U.S. government with its defense products.
As tensions with China continue, expect further business for Boeing as a ' Cold War atmosphere' develops.
On balance, Boeing offers investors a compelling mix of revenue growth
and margin expansion. The long-maligned airline industry is in the middle of a
period of profitability and efficiency like it has never seen before.
Boeing enjoys a solid inflow of contracts from both the Pentagon as well as foreign allies, courtesy of the company's varied product offerings…..
** OPTION TRADE: Buy CRM MAR 15 2019 150.000 CALL at approximately $5.10
The Result So Far………
Salesforce stock dropped about 25% off its all-time highs in late 2018 as macroeconomic concerns weighed on the company’s growth prospects and on the stock’s valuation. But, as those concerns have moved into the rear-view mirror in 2019, CRM stock has come roaring back. It now trades just a few points off of all-time highs.
This rally will continue. Salesforce is at the heart of the cloud and data revolutions. The company leverages data and analytics to deliver robust cloud solutions to enterprises that want data-driven insights. Demand for these services is only going to explode higher over the next several years as data-driven and cloud become the global enterprise norm.
As this happens, Salesforce’s numbers will get better; and CRM stock will head higher.
So, for “Armchair Trader Members”, who managed to execute this trade recommended by Stock Options Made Easy, a profit of 120% was to be made. For those options traders still holding onto CRM then yesterday they could have had potential profits of 184%.
Entering the trade at approximately $5.10, and then exiting at 11.20 Therefore, one options contract would provide a profit of $610.00. For those traders that exited yesterday when the price reached $14.50 for the call option, a nice return of $940.00 was to be had.
ANOTHER WIN FOR THE WEEK!
AS ALWAYS THE DECISION IS YOURS!
Cloud-computing pioneer Marc Benioff, chairman, co-CEO and founder of Salesforce.com wants it to be the most trusted software company in the world.
"We're in a world today that's in a crisis of trust," he said. "And when I look at what Salesforce can offer the world, maybe it could be that we can be an example of trusted leadership."
So far, investors have been impressed with Salesforce's consistent performance. Its stock rose 31.18% in 2018.
Can investors count on Salesforce for another banner year? Analysts say 2019 might be a choppy year.
"To use a trader's phrase, that means stocks take 'escalators up and the trap door down,'" analyst Davis said. "That's the kind of market where you want a company like Salesforce in your portfolio. There aren't many companies where you get about 20% revenue growth and 20% free cash flow margins at scale out there."
At the present time Salesforce stock is about 2% above a 153.37 cup-with-handle buy point. Shares broke out on February 1, and Salesforce stock could be building a new handle just below the old high that might offer an alternative buy point.
Looking ahead, the current Consensus Estimate calls for Salesforce’s Q4 fiscal 2019 revenues is expected to climb 24.9% to reach $3.56 billion. This would fall roughly in line with last quarter’s 26% top-line surge—which beat estimates—and top the year-ago period’s 24% expansion. Plus, CRM’s full-year revenues are projected to climb over 26% from $10.48 billion to reach $13.24 billion and top fiscal 2018’s 25% climb. Salesforce.com will report its next earnings on February 27, 2019.
Therefore, you may wish to consider a NEW Trade……..
** OPTION TRADE: Buy CRM APR 18 2019 165.000 CALL at approximately $6.90. Sell price is left to your own judgment.
As you would have by now realized, some of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but it is obvious that it did not apply in this case. But during earnings season this strategy of predicting earnings has been very profitable.
Sometimes it is our approach to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use – such as found with the “Earnings Predictions Program”. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been exceptional.
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!
Strategies to Consider……
When To Exit A Trade Based On Earnings?.....Read Article
"Trading Capital Management" is a key component of your trading strategy. The strategy, on which we base our trades to achieve maximum profit, and to minimize loss, is contingent on using an equal amount of money for each trade.……continue reading this article……
Our proven track record says it all!!
Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.
If you not a member and interested in being part of this profitable action just CLICK HERE.
Other Membership Options…….
If you interested in "Earnings Predictions" just click here……
or "Mentorship Program".....click here....