Salesforce (CRM) Offering Possible 12.36% Return Over the Next 3 Calendar Days

Salesforce's most recent trend suggests a bullish bias. One trading opportunity on Salesforce is a Bull Put Spread using a strike $197.50 short put and a strike $192.50 long put offers a potential 12.36% return on risk over the next 3 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $197.50 by expiration. The full premium credit of $0.55 would be kept by the premium seller. The risk of $4.45 would be incurred if the stock dropped below the $192.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Salesforce is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Salesforce is bullish.

The RSI indicator is at 64.6 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


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China Is Winning the Trillion-Dollar 5G War
Sun, 12 Jul 2020 22:00:17 +0000
(Bloomberg Opinion) — China is building tens of thousands of 5G base stations every week. Whether it wins technological dominance or not, domestic supply chains may be revived and allow the country to maintain – and advance — its position as the factory floor of the world, even as Covid-19 forces a rethink in how globalization is done. By the end of this year, China will have more than half a million of these towers on its way to a goal of 5 million, a fast climb from around 200,000 already in use, enabling faster communication for hundreds of millions of smartphone users. By comparison, South Korea has a nearly 10% penetration rate for 5G usage, the highest globally. The much-smaller country had 115,000 such stations operating as of April.The towers are part of a raft of projects that the State Council announced last week to boost industrial innovation under the “New Infrastructure” campaign aimed at furthering “the deep integration of the Internet of Things” and the real economy. With an aim of spending $1.4 trillion by 2025, the aggressive buildup toward a more automated industrial landscape will give China a renewed advantage where it already dominates: manufacturing. The coronavirus shut down factories and industrial sectors, triggering a rethink of supply chains – away from China. What analysts are calling “peak” globalization and the rise of factory automation could shift production to higher-cost countries in North America and Southeast Asia. It will take a while, but the global dependence on China will come down, the thinking goes. Still, with trade ravaged by Covid-19, other countries and telecom operators will struggle to match China’s spending.For China, there’s an opportunity to clear the way to forcefully implement its industrial policy agenda, without interference from criticism over subsidies and unfair competition. The so-called Central Comprehensively Deepening Reforms Commission, headed by President Xi Jinping, has approved a three-year plan to give state-owned enterprises yet more sway in the economy.Beijing’s ambitious programs are still in the construction phase. Macro base stations are the nuts and bolts of building out 5G networks, and will exceed their 4G predecessors by almost 1.5 times. Capital expenditure could peak at $30 billion this year, according to Goldman Sachs Group Inc. analysts, up from $5 billion last year. Beijing wants more local governments and companies to get involved. Each station costs around 500,000 yuan ($71,361) and has a long value chain that includes electrical components, semiconductors, antenna units and circuit boards. The vast number of companies spawned by the project are all contributing to China’s push to get ahead. For the industrial complex, the onset of 5G will enable greater connectivity between machines and much more data transfer and collection. Fifth-generation technology is expected to have a big impact through increasingly efficient and automated factory equipment, and tracking the movement of inventory and progress of production lines and assets. Manufacturing is expected to account for almost 40% of 5G-enabled industry output, according to  Bernstein Research analysts.From sensors and data clouds, to chips and collaborative robots and computer-controlled machinery, a whole universe of little-known Chinese companies is coming to the fore. Memory chip maker Gigadevice Semiconductor (Beijing) Inc. has ridden the trend, as has Yonyou Network Technology Co., China’s version of Salesforce.com Inc. For some of these companies, government subsidies are a significant part of earnings, as my colleague Shuli Ren has noted. Stock prices have surged in recent months for firms like Shennan Circuits Co., which makes printed circuit boards, and Maxscend Microelectronics Co., a manufacturer of radio frequency chips. Some are seeing their market capitalization values balloon by billions of dollars as Beijing has upped the ante on new infrastructure.  To be sure, it isn’t hard to imagine a hinterland speckled with ghost towers and base stations in coming years as China's propensity to overbuild beyond any reasonable capacity kicks in. The past shows that questions of quality will arise when too many sub-par manufacturers crop up, incentivized by the state’s largesse. Nonetheless, this is the technology of the not-so-distant future, and building up the basic infrastructure isn’t misguided.  As Covid-19 absorbs the world’s attention, Beijing’s steady focus on implementing this industrial policy may make China the manufacturer of parts that most countries will need – soon. In other words, it will yet again become the factory floor, mastering the production of all things 5G.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. She previously worked for the Wall Street Journal. For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

China Tech Roller Coaster Is Just Starting Its Climb
Wed, 08 Jul 2020 22:00:30 +0000
(Bloomberg Opinion) — China is nothing if not ambitious. Facing a coronavirus-battered economy, Beijing is speeding up an infrastructure build-out to stimulate growth, vowing to spend an estimated $1.4 trillion over five years on areas such as 5G, industrial automation and cybersecurity.This enthusiasm has propelled a fast and furious surge in stocks. The tech-heavy ChiNext Index is up 46% this year, and sports an eye-popping valuation of 35 times 2021 earnings. That’s above the Nasdaq Composite Index’s 27.5 times, which is already expensive and reason enough for the rally to fade.Investors are smart to play in fields where the fiscal dollars are. But it’s also a dangerous game. What’s recurring income and what counts as extraordinary items? Once we remove government subsidies, the valuations of China’s tech darlings become even airier. Helicopter money can come in many forms. First and foremost, Beijing is a large client. Even before the coronavirus, the government was the biggest buyer of IT security, accounting for 27% of total spending last year, according to IDC. Meanwhile, the latest policies, which require stringent security reviews, clearly favor local providers. Investors have picked up on this theme: Shenzhen-based Sangfor Technologies Inc., with a 25% and 22% market share in China’s VPN and content security segments, has soared 89% this year to $12.6 billion in market value. There are also regular cash handouts that lubricate companies’ daily operations, and money for new industrial parks. Injecting capital outright, as well as fast-tracking public-markets financing, are also on the table. Semiconductor Manufacturing International Corp., China’s largest chip foundry and its best shot at catching up to Taiwan Semiconductor Manufacturing Co., checks all of the boxes. Its Hong Kong-listed shares have risen more than 200%, amassing a market cap of $29 billion.Without the Beijing put, though, the income statements of many tech firms would look drastically different. At SMIC, government funding, which appears in “other operating income,” rose 87% to $293 million in 2019. A further $59 million in the first quarter exceeded the foundry’s $51 million bottom-line profit; in other words, without subsidies, SMIC would be in the red — and it wouldn’t even have a price-to-earnings ratio to look at. This phenomenon is pervasive. Of the 37 listed companies classified as “integrated circuit” industries, subsidies accounted for a whopping 15% of operating profit last year, on a market-cap weighted basis, Bloomberg Opinion analysis shows.The stand-outs are memory-chip maker Gigadevice Semiconductor (Beijing) Inc. and Unigroup Guoxin Microelectronics Co., which designs chips used in smart cards. A similar picture emerges for software companies, such as Yonyou Network Technology Co., which aims to become China’s Salesforce.com Inc., and Sangfor. All these stocks are big winners this year. While it’s great Beijing is tending its tech gardens right now, the question is whether and when it will pull the plug. Over the years, China’s electric vehicle sector has had an on-again, off-again relationship with subsidies, creating turbulence in stocks, as my colleague Anjani Trivedi has written. Will the government get tired of paying for an expensive tech build-out, too? Another aspect worth considering is that, unlike previous endeavors, this new infrastructure spree will rely more on local governments than national spending. Indeed, major areas including Beijing, Shanghai and Jiangsu province have been rolling out ambitious investment blueprints lately. But, pinched by the virus outbreak, they have no money. Their funding gap will reach as much as 11.5 trillion yuan ($1.64 trillion) this year, according to the Ministry of Finance. The southwestern city of Chongqing, for instance, saw its fiscal revenue tumble by 16.8% in the first four months this year. Still, it vowed to become a strategic investor in Tsinghua Unigroup Co., which has the very expensive goal of becoming China’s Samsung Electronics Co. Will Chongqing be able to deliver? Of course, extraordinary times call for extraordinary ways to look at stocks. Right now, investors have big grins on their faces when they do a word search for mentions of “government” in company filings. China’s tech carnival can’t go on forever, though. At some point, wary of the trillion-dollar bills, Beijing will want to slow down the money flow. By then, investors will be left holding stocks with lofty ambitions and peanut-sized earnings.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. She previously wrote on markets for Barron's, following a career as an investment banker, and is a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Salesforce Co-Founder to Participate in Upcoming Investor Event
Wed, 08 Jul 2020 20:30:00 +0000
Salesforce (NYSE: CRM), the global leader in CRM, today announced that Parker Harris, Co-Founder, will participate in a virtual keynote discussion hosted by Piper Sandler on Friday, July 10, 2020 at 8:00 a.m. (PT) / 11:00 p.m. (ET).

Slack co-founder: We will be more aggressive with acquisitions
Wed, 08 Jul 2020 19:02:52 +0000
Yahoo Finance catches up quickly with Slack co-founder Stewart Butterfield in the wake of the company announcing its sixth-ever acquisition.

Edited Transcript of CRM earnings conference call or presentation 28-May-20 9:00pm GMT
Wed, 08 Jul 2020 05:40:28 +0000
Q1 2021 Salesforce.Com Inc Earnings Call

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