I Believe Polycom Offers 50%-100% Upside Potential Within 2 Years
Polycom (PLCM; Market Cap $2B) is a turn-around situation trading at historic low TEV/revenue multiple. It hit my "radar" recently when I noticed it as a new position at activist fund Starboard Value LP.
The company generates great free cash flow, has a strong balance sheet and just completed a 22% share buyback.
I think it will resume growing top line by 2H-2014, if not sooner, which could lead to significant earnings growth and multiple expansion. Its stock could appreciate 50%-100% in 12 months.
There is a significant short interest in the stock which I think one needs to bear in mind for the very near-term. It is my opinion and experience that shorts get near-term stock moves right more often than not.
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