This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Short-Squeeze Stocks Ready to Pop

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player ( CRM), on the other hand, has had a slightly less blockbuster year. The $27 billion customer relationship management software maker is only up around 7.3% since the calendar flipped over to January, strong performance for a normal year, but far less strong performance for a year when the S&P 500 is up close to 19%.

>>5 Tech Stocks to Watch for Breakout Trades

But investors aren't just betting on underperformance from CRM. By and large, they're betting on a drop. Currently, the firm's short interest ratio weighs in at 13.04.

At its most simple, Salesforce makes software applications that help its 100,000 customers interact with their own customer lists, handling everything from sending newsletter to tracking sales. Because the firm's applications have a direct and measurable correlation with sales, switching costs are higher than most business apps. After all, customers are a lot less likely to stop paying for software when they can see exactly how much it's contributed to their top line.

Because CRM sells its software as a service hosted in "the cloud" rather than an application hosted on users' computers, it boasts an attractive subscription-based model. That model provides recurring revenues with limited effort in periods subsequent to picking up new customers -- and because integration with the platform is deep, customers can't simply jump ship without investing heavily in new systems.

Even though CRM has prioritized reinvestment over profitability in the last few years, it generates enough cash to turn the ship around quickly if the capital markets so dictate.
3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
GMCR $91.67 -0.30%
CRM $75.80 0.00%
CPB $61.71 0.00%
DISCA $27.31 0.00%
WM $58.79 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs