as I am typing
You would expect CRM to be much more profitable than OVTI and have much better business future, as the pps suggested, should be a triple. however the truth is:
ER date Apr-06 Jul-06 Oct-06 Jan-07
EPS 0.39 0.39 0.28 0.20
ER date Apr-06 Jul-06 Oct-06 Jan-07 Apr-07
EPS 0.04 0.06 0.06 0.07 0.01
and both expect the next earning to be about break even.
Sure you can argue that OVTI is in earning downtrend, however the company officially declared the turning around in current quarter, let along the new products such as truefocus in the pipeline for the future. I am still not seeing the rosey future CRM CEO painted, given the fact MSFT and ORCL are coming to eat its market.
OVTI has about $6.5 cash and short term investment per share, which is almost half of the pps, and virtually no debt.
CRM has about $2.5 cash per share, which is barely enough for working capital.
Anyway you already know that I long OVTI and short CRM