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Sally Jones
Sally Jones
Articles (580) 

Leon Cooperman - Is Polycom a Risk?

March 19, 2013 | About:

Chairman of Omega Advisors, Leon Cooperman, increased his position in Polycom, Inc. (NASDAQ:PLCM) by 69.7% on March 6, 2013. Polycom is a global provider of teleconferencing and other communications solutions for government, education and healthcare customers that enhance networking via voice and video. Cooperman’s latest add brings his current PLCM shares to 9,608,699. The current PLCM price is $10.28, with a change from average up 8%. Guru Cooperman bought PLCM for the first time in quarter ending Sept. 30, 2012. With 76 offices around the world, Polycom Inc. claims 415,000 customers and 7,000 partners worldwide. Polycom Inc. has a market cap of $1.89 billion. It has a P/E ratio of 169.9, a P/B ratio of 1.3 and a P/S ratio of 1.348.

Polycom Inc. reported 2011 revenue as $1.5 billion. With decreasing product sales that offset increasing service sales, Polycom’s 2012 revenue dropped:


PLCM data by GuruFocus.com

GuruFocus conducted a financial and performance checkup on PLCM and found these warning signs:

Polycom Inc.’s operating margin has been in a five-year decline with the average rate of decline per year at 4%. Also, the company’s asset growth is faster than its revenue growth, possibly meaning that the company may be getting less efficient. The Polycom Inc. revenue has been in decline over the past 12 months. The average price of PLCM was $28 in second quarter 2011, and dropped to $10.1 by fourth quarter 2012. PLCM revenue per share annual growth:

1363709684351.pngPLCM data by GuruFocus.com

Cooperman’s Omega Advisors Inc. has approximately $7.5 billion under management as of Feb. 28, 2013. His holding history and the average price of PLCM:

Is PLCM a small-cap to follow? Alongside billionaire hedge fund manager Leon Cooperman, other Gurus have increased their Polycom positions, while others reduced or sold out. See a history of PLCM Guru trades.

Cooperman’s other top buys, top sells and top holdings as of fourth quarter 2012:

GuruFocus "Real Time Picks" reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only. If you are not a Premium Member, we invite you for a 7-day Free Trial.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 4.4/5 (8 votes)


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