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Cramer: Salesforce.com Is Getting Cheaper

Stocks in this article: CRM AMZN AAPL MA CMG

Debra Borchardt:

All right, so better holders except for the insiders. We've had 16 insider sells in the last few months, so that's a little...

Jim Cramer:

There's been consistent insider selling the whole way.

Debra Borchardt:

That makes people a little nervous.

Jim Cramer:

There's been consistent insider selling the whole way. I think the company's fundamentals are good. I always leave this one to people ... Decide whether the fundamentals are good, but you're paying too much for it. It's very expensive stock.

Debra Borchardt:

Book value is $14.65. P/E 85 ... That seems rich.

Jim Cramer:

Well look...Netflix is very highly valued. So is Amazon. And there are a couple stocks that have broken out of the orb of valuation, and it's always been a sucker play over the long term to be in those, but over the short term it's produced tremendous returns, and I always say to use deep-in-the-money calls for these because I'm afraid they'll go down so big on a swoon ... Chipotle (CMG) from $400 to $300 ... But I think it's important to point out that the stock is reacting positively because people want to own the stock but it has been too expensive per share.

Debra Borchardt:

All right. So now they do the 4-for-1 stock split. People can get into it that couldn't get into it earlier, and that's a boon and positive for the stock.

Jim Cramer:

They will choose. Yep. Exactly right.

Debra Borchardt:

All right. There you go. Here comes your chance, folks. If you want Salesforce.com, it's going to be a little bit cheaper pretty soon for you.

-- Written by Debra Borchardt in New York.



>To contact the writer of this article, click here: Debra Borchardt.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
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