Lenovo Takes a Leap

The unveiling by Lenovo Group of a new line of low-cost PCs on Thursday -- its first major push into the U.S. market -- promises to heat up competition here, but the tack's counterintuitive nature was particularly intriguing. At a time when most of the top PC companies are looking east for growth, Lenovo sees opportunity on American soil.

However, with the PC market in the U.S. already mature and saturated, some investors wonder if Lenovo is bringing wood to the forest.

"Certainly there's a business replacement cycle and there's upgrades from time to time. But are PCs a growth industry in the U.S.? I would say no," says Mark Hillman, the chief investment officer of Hillman Capital Management, which owns Hewlett-Packard(HPQ Quote) shares as one of the firm's core assets. ...