But, as I noted, Lenovo understands that it needs to diversify. To that end, mobile devices are becoming an increasingly important part of the company's strategy. And it's beginning to show in the numbers. For instance, in this quarter, mobile devices contributed to 11% of overall revenue.

While this is not a breathtaking change, it is still progress. Besides, it's not as if Lenovo is struggling to hold PC market share. Meanwhile, Lenovo is rumored to be weighing a bid for Research In Motion ( RIMM), and the company said it would consider RIM among other options, according to Bloomberg.

It's a move that makes too much sense to not happen, and it's something I discussed at TheStreet last year, long before these rumors surfaced. In that article, I wrote the following:
Lenovo deserves more love than it gets from investors. While the company is operating on all cylinders, it is still a relatively unknown. But I think with its tablet and smartphone objectives this is all about to change. It is not out of the realm of possibility that Lenovo might consider making a play for a company such as Research In Motion. I can't think of a better way for it to make a splash on the market while also announcing its presence in the U.S. in the most authoritative way.

If Lenovo's mobile ambitions are to be taken seriously, this is a move it has to make. While the company is taking meaningful small steps, it may have to be reminded of how fruitful was its giant leap to buy IBM's PC business back in 2005. This is the same scenario. Making a play for RIM will yield similar to greater results -- especially in its own home country of China where it is competing with both ZTE and Huawei for smartphone share.

That the company has made this much progress in such a short period of time is remarkable. But Lenovo is anything but content. It's taken on prominent names such as HP, Dell, etc. and won. It now has its eyes set on Apple and Samsung in the mobile device and tablet market. That's a pretty tall task. Then again, so was growing a morbid PC business. But Lenovo's management figured out a way to succeed.

Despite the market's pessimism about PCs, the stock looks too cheap at this level to ignore. In the long term this stock can hit $30 as Lenovo gains more mobile device market share. But unless investors remove their existing PC bias, it might be too late.

At the time of publication, the author was long AAPL.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Richard Saintvilus is a private investor with an information technology and engineering background and has been investing and trading for over 15 years. He employs conservative strategies in assessing equities and appraising value while minimizing downside risk. His decisions are based in part on management, growth prospects, return on equity and price-to-earnings as well as macroeconomic factors. He is an investor who seeks opportunities whether on the long or short side and believes in changing positions as information changes.

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