RightNow (Nasdaq: RNOW), the best little technology company in Montana, today is powering to new all-time highs fueled by excitement about cloud applications and its recent success in garnering new customers and restructuring the company with a new COO.

The stock rose 1.54% today to $27.68, a new all-time high.

Scanning the news, it's hard to find anything particular that's driving the stock, unless you think a press release entitled "RightNow Helps Leading Consumer Brands Deliver Positive Customer Experiences and Drive Business Value." Nah.

I last wrote in detail about RightNow this summer when it was powering up its new applications strategy, which seems to be taking hold quite well. Since then, the company has also announced it recruited telecom veteran Wayne Huyard to be the new COO. The stock has more than doubled since the summer.

Right Now's riding the wave of a strong technology rally and also some excitement about cloud applications. It could also be an attractive takeover candicate for a larger cloud applications company such as Salesforce (NYSE: CRM).

Yesterday I was invited onto CNBC to discuss "Cloud Computing," an incredibly broad topic that somehow got boiled down to four stocks, thanks to the magic of television.

The sector is getting a bit overheated and I have been working out some ideas on how to head and/or short selected stocks. Right now I'm focused on the networking stocks because some of them are getting quite overvalued. CNBC correctly asked me how one could possibly short such a hot sector to which my answer is: hedge.

Anyhow, you can see the clip below. There is also a recap on CNBC.com.

The idea I came up with is that you could hedge with a pairs trade. After sifting through some names and valuations, I have decided that F5 Networks (FFIV) is more overvalued than Riverbed (RVBD), and I like Riverbed better in the long term. So a possible trade here is to stay long Riverbed, and short F5 as a hedge. The premise is that F5 is trading at a richer valuation with 10X sales and Riverbed is "only" trading at 6X sales. I would also note that Riverbed is smaller and growing faster so has more room to grow into its valuation.

Let's catch up on many of the public companies and stocks we've been following: