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Polycom Offers Solid Risk And Reward Heading Into 2014

Polycom (NASDAQ:PLCM): A Decent Risk/Reward Opportunity


In a year when the market ripped 30%, PLCM failed to find its footing and shares remained relatively stagnant. The stock is just hanging around although it has made an 8% move to the upside over the last couple of weeks on a fairly decent fourth quarter report. There are some simple yet valuable trends unfolding that I believe should provide material upside to the shares with comparatively less downside. Currently, the stock is priced at 1.8x book value with an 8% free cash flow yield. This modest valuation coupled with the following points provides material upside over the next year:

    PLCM returned over $500 million in capital to shareholders...
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