DVMT - Sell Lenovo An Over-Leveraged Tariff Target
Lenovo (LNVGY) overspent trying to diversify away from Laptops etc. and is now struggling to service its $10.8bn of net liabilities. The original Thinkpad purchase from [[IBM]] was a success, but it is hard to say the same about the deals with Motorola, Panasonic (PCRFY).
The PC market may be seeing some uplift in volume demand, but it remains extremely competitive and it is unrealistic to expect that Lenovo has any long-term margin advantage. Their mobile business continues to struggle and even a retreat to Latin America is fraught with problems, given the economic environment