Steven Wood was one of three finalists in the first Value Investing Challenge in 2012, which had more than 110 submissions that were judged by a panel of top money managers. Here's an update on his thesis on Fiat.


Sears Hometown and Outlet Stores
By Alex Rubalcava, Rubalcava Capital Management
By Randall Abramson, Trapeze Asset Management
Holiday Book Survey
By Barry Pasikov, Hazelton Capital Partners
Chico's: Back in Style
By Robert Reid, Briefing.com


7 Questions For Salesforce.com CEO Marc Benioff From A Prospective Shareholder
By Galileo Russell

Dear Mr. Benioff,

A new tech-bubble, hidden behind big data and social media, seems to have formed around the mystical ‘cloud computing’ field. Your company Salesforce.com (CRM), is known as “the enterprise cloud computing leader,” and thus has benefited from the market’s perception of your industry. After doing my initial due diligence, I’m left with 7 questions that I feel are relevant to the long term health of your company.

1. Why Are Gross Margins Declining At An Accelerating Pace?

Gross margin is a crucial indicator of how well a company’s business model is holding up, and how much the company is profiting without the inclusion of operating expenses. Salesforce (like most of its cloud peers) has a very high gross margin when compared to other companies, because of its Software as a Subscription (SaaS) business model.

To read the article in its entirety, please login. If you are not yet a subscriber, click here to sign up.
You must be logged in to post a comment.
Fri January 18, 2013, 16:34:58
Mr. Russell, this is top-notch work, congrats on a fine piece of research. Tough to predict when the stock market decides Benioff is an emperor w/ no clothes, but I agree w/ you, the day is drawing inexorably closer.