Josh Burwick
Long/short equity, growth at reasonable price, tech, Venture capital

Why Smart Money Is Aggressively Accumulating Polycom

Thesis

Leon Cooperman of Omega filed a 13G on March 14th after amassing 9.6 million shares, a roughly 5.4% ownership in Polycom (NASDAQ:PLCM). The stock jumped 5% that day on the announcement taking it barely into positive territory for the year after a horrific 2012 that saw the stock drop 36%. Omega joins other top Polycom holders Maverick, Coatue, and AQR. What has changed to warrant an investment in this big 2012 underperformer? Polycom exhibits all the characteristics of a stock that has bottomed and is poised to outperform: (1) strong valuation support with 40% of market cap in cash, (2) numbers upside in 2013 as revenue and margins have bottomed, (3) rejuvenated product portfolio along with a...

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