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Created: 07/31/2013 07:38:47 AM - Followers: 6 - Board type: Free - Posts Today: 0
http://seekingalpha.com/article/1581222-forget-the-temporary-worries-lenovo-built-to-continue-winning?source=email_wsb&ifp=0 Forget The Temporary Worries, Lenovo Built To Continue Winning Jul 29 2013, 14:30 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. PCs - Drive Profits In The U.S. And Europe, Growth In The Emerging Markets This isn't the time or place to debate the long-term future of the PC market in great detail, but I'm of the opinion that the PC market is not going to vanish anywhere near as quickly as the gadget hounds believe. Smartphones and tablets may be fine for social media, games, and music/movies, but they're pretty lousy for work and I don't see that changing any time soon. To that end, I don't view Lenovo taking the #1 market position in the global PC market in the second quarter of 2013 as the company getting a really nice seat on the deck of the Titanic. Strong positions in markets like the U.S. and Japan generate good cash flow for the company, and Lenovo still has the opportunity to not only improve its margins in Europe, but take further share from Hewlett-Packard (HPQ) and Acer. Likewise, I think the company has room to prosper from good decision-making - Lenovo has been slow to make a big commitment to touch-based notebooks, and that spared the company the problems that rising inventories of unsold touch products have caused rivals like ASUS.
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#249 Amazing that no one is on this board... fl_exec 07/17/2020 03:05:10 PM
#248 Anyone out there to answer a few questions fl_exec 11/14/2019 08:39:37 PM
#247 Lenovo Announces Next-Generation ThinkServer Systems for Small Business revlis 12/02/2014 02:13:22 PM
#246 Lenovo Takes Mobile Workstation Performance and Versatility to revlis 12/02/2014 02:12:35 PM
#245 Lenovo announced today the Next Generation ThinkServer Systems. techie86 12/02/2014 09:32:46 AM
#244 Lenovo’s $100 Billion Gambit revlis 11/30/2014 07:38:12 PM
#243 Lenovo Wearable Devices Reportedly Enter Production Soon revlis 11/28/2014 01:08:51 PM
#242 Lenovo Simplifies Storage Management with New Premium App revlis 11/21/2014 12:42:31 PM
#241 Lenovo launches REACHit app for storage management revlis 11/20/2014 02:03:53 PM
#240 Lenovo Showcases High-Performance Computing Innovations at Supercomputing 2014 revlis 11/18/2014 10:04:14 AM
#239 OT revlis 11/13/2014 12:34:14 PM
#238 Fixnetix Selects Lenovo Servers for Global Bank Customer revlis 11/13/2014 12:33:17 PM
#237 New Moto G Leak: Motorola Adding Speed And revlis 11/11/2014 09:32:28 AM
#236 Lenovo Completes Acquisition of Motorola Mobility from Google revlis 10/30/2014 01:13:09 PM
#235 Lenovo Adds New 13-inch Windows Tablet to YOGA revlis 10/30/2014 01:12:19 PM
#234 Lenovo Advances ThinkPad Mobile Workstation Software Solution revlis 10/29/2014 10:45:38 AM
#233 SUSE Linux Enterprise 12 Now Available revlis 10/27/2014 01:26:54 PM
#232 Dialog Semiconductor's Advanced Power Management Chosen for Lenovo revlis 10/27/2014 01:13:47 PM
#231 Lenovo Offers Users a World of Music at revlis 10/22/2014 10:56:14 AM
#230 Lenovo adds ThinkCentre M83 Tiny to business desktop lineup revlis 10/20/2014 07:36:34 PM
#229 Lenovo to Establish New Mobile Phone Company in China revlis 10/20/2014 07:34:28 PM
#228 Lenovo to Establish Internet-Focused Smart Device Company in revlis 10/15/2014 12:26:07 PM
#227 New Lenovo Desktop PCs Power Up for Business revlis 10/15/2014 12:25:16 PM
#226 Lenovo Announces a New Alliance with VMware to revlis 10/15/2014 12:24:33 PM
#225 Lenovo Announces All-In-One Modular Thin Clients to Expand revlis 10/13/2014 08:30:17 PM
#224 Lenovo Brings First Fanless 2 in 1 on revlis 10/13/2014 08:12:12 PM
#223 Lenovo Extends Term of Joint Venture Agreement with revlis 10/08/2014 01:22:43 PM
#222 IBM Acquisition Press Conference Remarks from Yang Yuanqing revlis 09/29/2014 08:21:51 PM
#221 Lenovo Set to Close Acquisition of IBM’s x86 revlis 09/29/2014 08:21:17 PM
#220 great performance since I got long into this :) goforthebet 09/23/2014 09:24:43 AM
#219 Lenovo, Xiaomi, Foxconn may get MVNO permits - report revlis 09/16/2014 05:44:51 PM
#218 Less Waiting, More Learning With the Lenovo ThinkPad revlis 09/11/2014 10:57:40 AM
#217 Vuzix Begins Shipments of its Lenovo Co-Branded M100 revlis 09/10/2014 10:11:00 AM
#216 Emulex Ethernet and Gen 5 Fibre Channel Connectivity revlis 09/09/2014 10:34:29 AM
#215 Lenovo solves the partner network equation with hybrid cloud revlis 09/09/2014 10:28:37 AM
#214 Dell, Lenovo Among OEMs Launching Intel 'Grantley'-Based Servers revlis 09/08/2014 08:48:18 PM
#213 Lenovo updates three ThinkServer systems, aims for smaller footprint revlis 09/08/2014 08:43:54 PM
#212 Lenovo presents Flex 2 Pro at IFA trade fair revlis 09/08/2014 08:42:37 PM
#211 Lenovo Serves Up Fresh Thinking with Next Generation revlis 09/08/2014 06:18:06 PM
#210 New Lenovo Devices Transform to Fit the Board revlis 09/04/2014 10:21:24 AM
#209 What’s Your Vibe? Lenovo Reveals Two New Premium revlis 09/04/2014 10:20:41 AM
#208 Lenovo Announces Expanded Portfolio Of Tablets And PCs revlis 09/03/2014 04:57:51 PM
#207 Digitimes Research: Samsung, Lenovo cutting tablet prices in revlis 09/03/2014 10:40:27 AM
#206 New Lenovo Tablet and Gaming PC Innovations Satisfy revlis 09/03/2014 10:25:49 AM
#205 Lenovo smartphones launch in 10 EU countries: Here's revlis 08/29/2014 08:35:33 AM
#204 Lenovo ThinkPad Helix 2, IdeaTab S8 leaked ahead revlis 08/29/2014 08:34:07 AM
#203 GT Nexus and Lenovo to Discuss Supply Chain revlis 08/27/2014 08:02:33 PM
#202 Lenovo steps up its European smartphone ambitions with revlis 08/27/2014 04:41:06 PM
#201 Lenovo Delivers New Lenovo/EMC VNX5150 Storage Array for SMBs revlis 08/27/2014 09:22:32 AM
#200 Lenovo Could Deliver New ThinkPad Yoga Systems revlis 08/26/2014 03:27:40 PM
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