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Salesforce.com ( CRM)

Company Profile: Salesforce.com provides customer-relationship management services to businesses.

Closing Price: $116.74 (Sept. 17)

One-Year Stock Performance: 100%

Wassung's Take: "Cloud computing, and specifically software-as-a-service (SaaS), helps minimize the investment people need to make in their own enterprise. That's a theme that will continue to have legs. Salesforce.com is the lion in that area. It's another long-term secular trend. They're very small relative to the big software companies, like Oracle ( ORCL) and SAP ( SAP). The whole notion of SaaS is a subscription, rather than buying software up front. That defers the revenue over time. Revenue and earnings tend to lag the adoption of the business, so names like this will trade at higher price-to-earnings ratios. So when it comes to valuing a company like this, you have to look at cash flow."

Analyst Consensus: Of the 35 research firms with coverage of Salesforce.com, 19 say investors should buy shares and another 15 have a "hold" rating. Only one firm has a "sell" rating on Salesforce.com.

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