Lenovo (LNVGY.PK) can't afford to buy BlackBerry (BBRY -4%) even if it wanted to, argues Pac...

|About: Lenovo Group Ltd. ADR (LNVGY)|By:, SA News Editor

Lenovo (LNVGY.PK) can't afford to buy BlackBerry (BBRY -4%) even if it wanted to, argues Pac Crest's James Faucette, trying to cool off fresh speculation on the subject. BlackBerry's current market cap of $7.4B isn't far removed from Lenovo's $11.2B, he notes. Moreover, Lenovo has only $4.1B in cash, and the company would have to hold onto $2.4B of it to maintain its traditional minimum cash-to-sales ratio of 7%.