This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Aggressive Lenovo Might Be Worth Your Investment

TAIPEI (TheStreet) -- For several years Chinese leaders have nudged the country's top companies to sustain themselves by looking for business overseas. Offshore business eases reliance on a competitive home market and advances the Communist Party goal of China's gentle global expansion through economic clout.

A lot of Chinese companies have ventured overseas, but their missions often get moored in the emerging markets of Africa or Southeast Asia. One, however, has taken two big wholesome bites into the United States. That's Lenovo (LNVGY).

In 2005 Lenovo bought the PC unit of IBM (IBM) and said last month it would grab the American computer maker's low-end server business. More significantly, last month the Chinese consumer hardware maker bought Motorola Mobility for $2.9 billion from Google (GOOG). That makes Lenovo the world's third-biggest smartphone vendor once the deal gets full regulatory approval.

I've signaled Lenovo's strength before. Now its move on Motorola Mobility offers more cause to feel good about investing in the Nasdaq- and Hong Kong-traded Lenovo that has escaped the trap of its Chinese peers.

Must Read: Yellen to Hill: It's Not Just Unemployment, Stupid

Lenovo has scored in the United States through global marketing, a clean reputation -- consider blacklisted Huawei and ZTE for contrast -- and overall business efficiency. On the last point, consider that Google paid $12 million for the same Motorola Mobility two years ago.

"In recent years, Lenovo has been strategically aggressive," Taipei-based market research firm TrendForce says in a Jan. 30 note. "With its wealth of financial resources and greater ambitions than its industry peers, it has focused its efforts on directly purchasing existing brands to expand its market share, providing Lenovo with the critical factor for its growth leaps seen in its targeted purchases."

The acquisition of Motorola Mobility, incidentally, happens to make a lot of sense.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.70 0.00%
FB $101.91 0.00%
GOOG $683.11 0.00%
TSLA $150.47 0.00%
YHOO $26.76 0.00%


Chart of I:DJI
DOW 15,660.18 -254.56 -1.60%
S&P 500 1,829.08 -22.78 -1.23%
NASDAQ 4,266.8370 -16.7550 -0.39%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs