Lenovo is a giant asian tech company based in China. It has been proved to be a leader worldwide in pc sales even bigger than hewlett packard and dell. As also 2 in sales in asia, even beating apple in china. 24 billion business for lenovo which has remained profitable even with the troubles in the pc business worldwide.
Although many may think that the core business of pc sales will send the stock down it wont. Lenovo is the only company that this year lost less than 2% pc sales. But amazingly they are succesfully shifting to the mobiile business with their year on year growing about 206%. Even their pc business grew 14 points faster than every other competitor. They have grown their dividends and profit margin and market share year on year.
But the problem is if all this is wonderfull why dosent the stock move? The truth is that Lenovo's stock does hardly move at all.It is at 18.18$ trading between its 52 week low: 13.71 - 23.22 . It has hardly moved this year it started at 22 dollars and its currently at 18. But why is this? I believe lenovo is a really big undervalued stock and hasnt been really in the highlight yet. Its been huge in asia but it has not shifted big in the western part of the world yet. But i believe they are shifting and will do so succesfully. With the good cash and good investments they have made like the buying of ibm's business the think pad which has been great and the rumors of buying the struggling Blackberry business. As also the new facility in North Carolina for the creation of their pc's for the Us. I believe lenovo is a great company just not yet great stock.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.