Wednesday, May 27, 2015

Seeking Alpha: Lenovo Facing Headwinds, But Managing Them Well

The core markets that Lenovo (OTCPK:LNVGY) serves haven't been in the greatest of health lately. PC sales continue to fall, and smartphone sales in China and large emerging markets have weakened. Despite that, the company continues to focus on building share and refining a lean model that keeps constant pressure on its rivals.

The key priorities for Lenovo's management need to be the improvements of the server business (acquired from IBM (NYSE:IBM)) and the mobile business acquired from Google (NASDAQ:GOOG). Both can support the company's basic functional value philosophy, but both need their cost structures further "Lenovo-fied". I continue to be bullish on the company's prospects for achieving these endpoints, but the shares aren't an obvious bargain today.

Read the full article here:
Lenovo Facing Headwinds, But Managing Them Well

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