You are taking on the role of an educated investor (which you now are) who owns a "significant" number of shares in Salesforce.com. You are writing an open letter to the Board of Directors with your suggestions for change. The letter may be positive or negative in tone, but the purpose is to highlight key financial data and urge management to take certain actions. Your letter must clearly state your reasons for reaching out to the Board, your rationale for buying the stock, and your recommendations for changes going forward.
In your letter:
1. Begin with a brief recap of your reasons for buying the stock. Explain why you consider Salesforce.com to be a value stock or a growth stock. Support your position with reference to at least two categories from the Value Investing and Growth Investing Checklist and two categories from the Growth Investing Checklist.
2. Summarize key product specific metrics, noting: What the ratios (EPS, EBITDA, and ROE, ROIC and RONIC) in the Morningstar and Annual Report show what ratios need to improve and why What Salesforce.com most profitable products and services are which products or services management should increase or reduce investment in and why
3. Based on what you have learned about economic moats and your analysis of values, growth and profitability of Salesforce.com, conclude your letter with an explanation of your opinion about the company. Is Salesforce.com a "great moat" company, a "good moat" company, or is it time to divest? Why?