An article in Barrons this weekend suggested that Salesforce.com (CRM) would be a good stock to short. As usual I checked out the financials. It has a forward P/E of more than 60 and free cash flow is significantly below earnings. Analysts are forecasting rapid earnings growth but some have recently downgraded the stock. The chart also looked vulnerable to decline. The stock has an extremely high beta of 4.58. If the market goes down in the next few days then it will go down more. Salesforce was also mentioned here over the weekend. Wallstrip recently ran a positive show on it. Not sure how long I will hold the short. I'll play this one by nose or is that ear :)
Barrons also suggested shorting ACP, Carl Icahn's firm. It opened today steeply down. The bid-ask spread was so big though that I didn't want to get in. I'll monitor this one and see if a bounce is worth shorting.
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