NEW YORK ( TheStreet) -- Stocks sell off for many reasons. Among the most common reasons are reallocation of capital by elephants (hedge, pension, and mutual funds), earnings, and emotion.The latest in-fashion reason to account for the decline in stock prices is the so-called fiscal cliff. I suppose the term fiscal cliff has a better ring to it than simply calling it what it really is -- the end of the party.
Polycom (PLCM - Get Report) Background: Polycom provides standards-based unified communications (UC) solutions. 52-Week Range: $7.45 to $22.34 Book Value: $8.03 Price To Book: 1.3 Shares are slowly but steadily climbing in the last 30 days, up 3% since about a month ago. Longer term, the shares have sold off and present a bargain for value seekers. The company is debt-free, earned about 32 cents in the last year, and is expected to see an increase for profit and revenue next year. Best of all, the shares are on sale, trading about 20% below the 200-day moving average. I believe the moving average will get tested soon. Other than the key moving average, my technical analyst on the chart is bullish. Seventeen out of 18 analysts are now rendering a hold recommendation. One recommends this as a buy, and no analysts recommend selling. The average analyst target price for Polycom is $10.46. The current proportion sold short based on the float is 8.2%, and I find this much interest by short sellers worth looking at in more depth. Short-sellers are the smart money, but they don't always get it right. I think they have it wrong this time.