This Day On The Street
Continue to site
ADVERTISEMENT
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

Lenovo Must Team Up With BlackBerry to Fight Apple and Samsung

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 - Get Report) 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.

Together, though, Lenovo and BlackBerry could more effectively fight their joint enemies: Samsung (SSNLF) and Apple (AAPL).

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.

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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
LNVGY $33.60 0.15%
BBRY $10.15 -2.20%
AAPL $131.66 1.10%
FB $82.08 0.67%
GOOG $554.95 -1.80%

Markets

DOW 18,038.80 -41.34 -0.23%
S&P 500 2,112.95 -4.74 -0.22%
NASDAQ 5,063.6340 -28.4510 -0.56%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs