Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Why Polycom Inc (PLCM)’s Stock Has Rallied Today?

Polycom Inc (NASDAQ:PLCMhas rallied by 6% following a Wall Street Journal article stating that a second buyer has made a revised offer in which Polycom might find as ‘superior’ to the current one offered by Mitel Networks Corporation (NASDAQ:MITL) where Polycom shareholders would own 60% of the combination of the two. The second buyer, a private equity firm, offered two choices. Here’s how the Wall Street Journal put it:

“The unidentified private-equity firm presented two plans: an $11-a-share cash dividend, or the choice to trade the dividend for a new convertible preferred stock; or a “take private” deal of $11.50-a-share in cash with a contingent of up to $3 a share.”

If investors take up the second plan, and get all of the contingent of $3 per share, Polycom Inc (NASDAQ:PLCM) would have more upside left. Hedge funds are bullish on Polycom and the number of funds with long positions went up by four during the first quarter. Overall, 22 funds from the Insider Monkey database held long positions in Polycom as of the end of March. At the end of this article we will also compare PLCM to other stocks, including Ophthotech Corp (NASDAQ:OPHT), AAON, Inc. (NASDAQ:AAON), and Coca-Cola Bottling Co. Consolidated (NASDAQ:COKE) to get a better sense of its popularity.

Follow Polycom Inc (NASDAQ:PLCM)
Trade (NASDAQ:PLCM) Now!

If you’d ask most investors, hedge funds are viewed as unimportant, old investment vehicles of yesteryear. While there are over 8000 funds in operation today, We choose to focus on the elite of this group, approximately 700 funds. It is estimated that this group of investors have their hands on the majority of all hedge funds’ total asset base, and by shadowing their inimitable picks, Insider Monkey has discovered several investment strategies that have historically surpassed the broader indices. Insider Monkey’s small-cap hedge fund strategy outstripped the S&P 500 index by 12 percentage points a year for a decade in their back tests.

With this in mind, let’s take a closer look at the funds that have been invested in Polycom heading into the second quarter.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.