NEW YORK (TheStreet) -- With all of the talk about the decline in the PC industry, Lenovo (LNVGY) continues to demonstrate what is possible when a smart management team combines vision with pinpoint execution. Lenovo's ADR was trading at $24.50 at 1 p.m. Thursday, up 0.2% for the day.
BlackBerry's (BBRY) main issue is its lack of vision and focus, on the other hand. At 1 p.m., the stock was trading at $7.31, flat for the day.
Lenovo's strong history of reviving fledging businesses makes it the perfect candidate to realize the turnaround BlackBerry investors are hoping for.BlackBerry CEO John Chen has been vocal about his desire to sell off the handset business. Lenovo is the right buyer -- and it's not afraid to spend. Back in January, after announcing its acquisition of IBM's (IBM) x86 computer server business for $2.3 billion, Lenovo picked off Google's (GOOG) Motorola assets for $2.91 billion. Although Lenovo is far from a household name, management has begun to address this with strategic deals leveraging its strong international presence to grow its U.S. footprint. While speaking Thursday to the Wall Street Journal, Lenovo's Chief Financial Officer Wong Wai Ming said that even though its IBM and Google buys are yet to close, his company is open to more deals. And the company has more than enough capital to finance an acquisition. Wong Wai Ming also added: "We keep our eyes open because M&A is like dating. If the right one comes to you and if you don't take it, he or she will go to somebody else." He's absolutely right. While he stopped short of saying what business Lenovo may pursue, he shouldn't ignore a plum opportunity in BlackBerry. With Lenovo shares down 12% since January, investors are unsure of the company's next direction. Some exited the stock, fearing management was spending too much. But following yet another earnings beat, now is the time for Lenovo to strike. BlackBerry should be the next target.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV