Chinese PC, smartphone, and tablet manufacturer Lenovo (NASDAQOTH: LNVGY )
has a knack for surprising analysts and investors that goes back a
while. Lenovo defied skeptics who thought its acquisition of the IBM (NYSE: IBM )
PC business was a losing move, leveraging that deal to build the
world's largest PC business and continuing to grow its PC business at a
time when the market is shrinking.
Now Lenovo is doubling down in a big way. The company's acquisition
of IBM's server business was well-telegraphed and well-liked, but then
the company shocked the market with the nearly $3 billion acquisition of
Motorola Mobility from Google (NASDAQ: GOOG )
. The latter has proven quite controversial, with some sell-side
analysts speculating that Lenovo will never turn Motorola around and the
shares down around a quarter since the announcement.
I believe that the near-term skepticism ignores the substantial
long-term opportunities at Lenovo and some significant undervaluation in
these shares.
Read more here:
Lenovo Group Ltd: Taking Short-Term Pain For Long-Term Gain
No comments:
Post a Comment