CANSLIM.net Profile: Salesforce.com, inc. provides customer relationship management (CRM) service to businesses of various sizes and industries worldwide. The company provides AppExchange, an online directory for SaaS applications, where customers can browse, test-drive, and install applications. It was founded in 1999 and is based in San Francisco, California. The stock resides in the Computer- Software Enterprise group which is presently ranked 41st on the 197 Industry Groups list which is inside the much-preferred top quartile of groups, satisfying the L criteria. The number of top-rated funds with an ownership interest has grown from 272 funds in September '08 to 294 funds as of June '09 which is an encouraging sign of increasing institutional interest (the I criteria). Strong quarterly earnings growth satisfies the C criteria. There is some concern over sequential deceleration in its sales revenues growth rate, yet quarterly earnings increases have been above the +25% minimum guideline.

What to Look For and What to Look Out For: The stock is currently trading below its maximum buy price which means that it is currently considered buyable under the proper guidelines. CRM is scheduled to report earnings on Thursday, August 20th. Near earnings news, investors may expect that volume and price action can be very volatile. It is important to remain disciplined. Chasing it after it trades above its maximum buy price of $47.87 is not a prudent move. Instead, this stock should be accumulated before it trades above its max buy price. Keep in mind that it is common for stocks to retrace and test near-term support near prior chart highs. The bulls remain in control as long as this stock continues trading above its $45.59 pivot point.

Technical Analysis: The stock recently broke out of a 13-week base on heavy volume which is a strong sign of institutional sponsorship. The stock spent a little over 3 months building its latest base before it triggered its latest technical buy signal on August 12th gain on heavy volume.  Since then the stock has drifted lower, and the consolidation process presents an opportunity for investors to accumulate shares under the maximum buy price.