Snag This Opportunity in Salesforce

 | Nov 19, 2013 | 7:20 AM EST
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How can (CRM) be down? If it is so great, why is it selling off? That's a bit of the theme that I was hearing during after-hours trading after the company reported its record quarter.

To me the answer is simple: The stock's had a run, and profit-takers are out in full force.

But there is an amazing self-fulfilling prophesy that goes on in these high-multiple stocks. People immediately begin to poke holes at the stock because it is going down.

Now, I am sure some will argue that no stock goes down if there isn't something wrong. But this year we have seen so many tech stocks get hit first, only to witness them rally a few days later. I think that's what will happen here, too, given Salesforce's $1 billion in sales, huge backlog, terrific unearned income and lots of incredible acceleration in revenue growth from the Exact Target acquisition. It's funny – the latter was derided as nothing more than an email marketing company. But, after watching the Exact Target team show me its soup-to-nuts approach to selling cars for Ford (F), I don't think this derision holds much water.

Now Salesforce stock is up 32%. That's not outrageously higher, but it is enough to warrant some attempts to color the quarter, and for others to get nervous in their thorough failure to understand what the company actually does.

No matter -- this stock, which has been such a huge winner, is once again going to give you an opportunity to do some buying. I think it should be taken.

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we like this chart here, it appears ready to move higher. BOUGHT BZUN OCT 35 CALL AT 3.40
Large-cap, high-quality McKesson (MCK) is too cheap now, at $147.51 or so. The stock hit $243.60 more than 2.5...



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