Selling Salesforce Short
By Jesse Freund

(Business 2.0) – Salesforce.com could find coal in its stocking when the company's IPO lockup expires on Dec. 19. The next day 91 million of Salesforce's 108 million shares—an unusually high proportion—will flood the market, and short sellers are already loading up. The firm's customer-relationship management business enjoyed 88 percent revenue growth last year. But as of late October, it was trading 127 times higher than next year's expected earnings. Analysts say the stock could lose a third of its value when the lockup ends.