Overvalued, Overvalued, Overvalued…NOT the Location, Location Location of Markets

In April 2007, I Wallstripped Salesforce.com. It’s in my top 5 fave shows we made. Every time I hear the stock mentioned, I think about making the show and the run the stock has had since. It’s a quick watch with many lessons:

One of the most used words outside of actual tickers the last 3 years on Stocktwits is ‘Overvalued’.

It somehow makes investors and traders feel good about their positions or lack thereof as the markets romp in the United States.

I cringe when I hear it used when talking stocks. LIQUID securities that you can fling around for a few shekels commission amongst the lunatic and behemoth institutions of 2013 are the furthest thing from ‘overvalued’ or ‘undervalued’.

According to gentlemen like Mark Cuban,’the market is broken’ or the whole thing is now ‘just a game’. It is just not true.

Today, Salesforce is hitting all time highs. It is hard to find non-employees that will admit to owning the stock. It is of course ‘overvalued’.

The Company should just change their ticker symbol to $OVRVLD from $CRM for kicks.

I have quickly annotated a Salesforce chart for you since 2009:

original_13612701-1

There are so many forces at work in the markets at any moment. Don’t be lazy with any one style or indicator.

2 comments

  1. William Mougayar says:

    I agree. Benioff is priced into it.
    If you take the man out, like Jobs, the premium deflates.

    But in selfish hindsight, that’s what allows them to buy startups you invest in. Overvaluation has a cascading effect ;)

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