Every time a new consumer tech gadget comes out, it seems like
investors forget a simple a rule - sooner or later, everything becomes a
commodity and success comes down to who can design, build, and ship at
the most appealing cost structures. That's something that Lenovo (LNVGY.PK)
has quite a bit of experience with, as it has used internal execution
and significant acquisitions to become the world's #1 PC vendor and the
#3 handset company.
I don't see any reason to believe that Lenovo
is done. The company has started to build its server business, and may
ultimately strike a deal with IBM (IBM)
that would vault it into the #3 slot almost overnight. Likewise, the
company is looking to take its growing mobile device business into the
U.S. in 2014, and Lenovo's past success in the PC business suggests that
investors shouldn't ignore the potential there.
There are risks
that the Chinese PC market leads to some noise in the shares over the
next quarter or two, but waiting for that to settle down could mean
missing a few points in the stock. With long-term appreciation potential
of more than 30% to 60%, Lenovo looks like a good play on emerging
markets consumer and business spending.
Please continue here:
Forget The Temporary Worries, Lenovo Built To Continue Winning
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