(Editors' Note: Lenovo trades on the Hong Kong exchange on the ticker 0992.HK, with ~HKD$782M average daily volume).
When fellow SA Pro contributor Stephen Simpson first suggested that Lenovo (OTCPK:LNVGY) could have 35-60% upside from the $19 level at which it traded, I found myself in agreement at the time, albeit after having only done a cursory amount of work on the name and with limited "dry powder" to deploy at the time. With shares having pulled back substantially after gutsy acquisitions that will have a pretty meaningfully negative effect on earnings in the short run, I believe that investors with a 2-3 year time horizon will see a rather dramatic payoff.
Why The Pullback?
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