Lenovo 0992

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DJ MARKET TALK: Bears Target Lenovo; But Probably Not A Good Idea
Jan 26, 2012

1521 [Dow Jones] Bears apparently are not deterred by Lenovo's (0992.HK) 3.0% rebound to HK$6.54, which snaps a three-session 15.0% selloff; the stock draws HK$40.49 million worth of shorts in the morning, accounting for a tad over 20% of its trading volume.

Still, bears perhaps should take note of Lenovo's share buy back Monday, with the company spending more than HK$30 million to buy back 4.8 million shares; if judging from past history, more shares repurchases are likely, and the company certainly has plenty of ammunition.

According to JPMorgan, Lenovo's average net cash position as a percentage of market cap has hit 46% currently, close to previous trough levels (except the global financial crisis);

It notes the firm has started to buy back shares, and "in the past few cycles, the stock has bottomed out once this occurs."


Source: Dow Jones Newswire

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LENOVO GROUP (00992) reiterated OW with TP$8.1 by JPM on buy opportunity
2012-06-26


LENOVO GROUP (00992) has recently made a correction of 15%, providing a good buy opportunity for investment over the next 6-12 months, JP Morgan said in a report.

LENOVO GROUP recorded a growth of 10% in personal computer sales since June and expects 5-10% quarter-on-quarter growth in September sales.

JP Morgan lowered relevant growth forecast and believes there is no room for further downside to estimate. The bank is still positive on LENOVO GROUP and reiterated an Overweight rating and target price $8.1.

Source: AAStocks Financial News

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LENOVO GROUP (00992) optimistic about biz in 2H2012, expects growth to exceed average level in mkt

Yang Yuanqing, chairman of LENOVO GROUP (00992), is upbeat about the company's business for the second half of this year and is confident in the company's competitiveness. He believes business growth can exceed the average level in the market.

Yang reiterated the company did not lower its shipment forecast for 2012 significantly. He added the full picture cannot be seen by looking at external supply only.

Source: AAStocks Financial News

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DJ MARKET TALK: Jefferies Cuts Lenovo Rating; Tips Macro Headwinds

1322 [Dow Jones] STOCK CALL: Jefferies cuts Lenovo (0992.HK) to Underperform from Hold, and target price to HK$5.70 vs HK$6.00.

The house says while Lenovo is on track to expand share in a tough PC market, it believes that slowing demand in both China and overseas negatively impacts overall growth, thus "leaving room for downward revisions of street expectations."

Jefferies says for the June quarter, it forecasts Lenovo's sales to grow 8% on-quarter to US$8.07 billion, and expects US$132 million net income, in line with consensus; for the September quarter, however, with concerns about PC market demand, it expects Lenovo to see 6% on-quarter sales growth, below consensus of 10% growth.

Lenovo falls 4.1% to HK$6.10.

Source: Dow Jones Newswire

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DJ MARKET TALK: Lenovo May Rebound; Co-Develop Tablets With NEC

0749 [Dow Jones] Lenovo (0992.HK) may recover a bit, helped by a Nikkei report Thursday that it and NEC (NIPNF) plan to jointly develop tablets, expanding their current partnership in PCs.

Chairman Roderick Lappin of Lenovo NEC, the JV between the two companies, told The Nikkei that the partners are collaborating on tablet R&D; while commercialization will take some time, the two firms will create a product that draws on their strengths.

Lenovo shares have fallen a whopping 19.4% in the past nine sessions (vs the HSI up 1.0% in the same period) as investor fretted over a likely PC market slowdown, although the company has stepped up shares buyback; according to a Dow Jones Newswires calculation, Lenovo has bought a total of 12.86 million shares since June 26.


Source: Dow Jones Newswire

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DJ MARKET TALK: Lenovo Battles Short Sellers With Share Buybacks

1018 [Dow Jones] Lenovo (0992.HK) and short sellers are locked in a battle and it may be too early to declare who the winner may be.

Lenovo was the 3rd most heavily shorted Hong Kong stock Wednesday, racking up HK$183.7 million worth of shorts; on the other hand the company continues to buy back shares.

According to an exchange filing, Lenovo bought 5 million shares at HK$6.02-HK$6.12 Wednesday, and since June 26, the company has repurchased 17.96 million shares, according to a Dow Jones Newswires calculation.

While that amount only accounts for 0.2% of Lenovo's outstanding shares, it does signal the company's view that the stock's recent selloff is overdone.

Lenovo has fallen 19.4% in the past nine sessions (vs the HSI up 1.0% in the same period) as investors fretted over a likely PC market slowdown. The stock rebounds 0.8% to HK$5.97.

Source: Dow Jones Newswire

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DJ MARKET TALK: Lenovo May Rebound More; First Factory In Brazil

0757 [Dow Jones] Lenovo's (0992.HK) $30 million investment in Brazil is insignificant in the group context, but shows that China's largest PC maker is continuing to make progress in the emerging markets.

The stock may rebound more after taking a beating recently on concerns of global PC market slowdown.

It rebounded 0.7% to HK$5.96 Thursday but is still down 20.2% in the past 10 sessions (the HSI rose 1.5% in the same period).

Lenovo said Thursday it plans to build its first factory in Brazil, Latin America's largest country; the new facility, to be based in Sao Paulo state, is scheduled to begin operations in December 2012.


Source: Dow Jones Newswire

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DJ MARKET TALK: Lenovo Off 4.0%; Accumulate Below HK$5.80-Tanrich

1121 [Dow Jones] Lenovo (0992.HK) remains firmly entrenched in the downtrend, falling 4.0% to HK$5.72 and has now corrected 23.4% vs a June 20 close of HK$7.47, and despite the company's recent active shares buyback.

According to an exchange filing, Lenovo last bought 5.1 million shares at between HK$5.97 and HK$6.04 Thursday, and has bought a total of about 23 million shares recently.

Jackson Wong, an investment manager at Tanrich Securities, says he remains confident on Lenovo prospects despite a likely slowdown in the overall PC market.

"Lenovo will continue to outgrow the market, and its growth in the second-tier cities in China and in the emerging market remains solid."

He advises investors to accumulate Lenovo shares at HK$5.80 or below.

Source: Dow Jones Newswire

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DJ MARKET TALK: Lenovo Off 25% In 12 Days; But Don't Bargain-Hunt

1105 [Dow Jones] Normally, a 25% share-price retreat in a quality company like Lenovo (0992.HK) would be a tempting bargain-hunting chance, but "I just don't like the fact that technically, the stock falls below its 250-day moving average (now at HK$5.94) without putting up any fight," says SHK Financial strategist Daniel So.

He says fundamentally, Lenovo grew its PC market share in the past two years at the expenses of its rivals, but it remains to be seen whether such market share expansion is sustainable in the long term.

Also, there's doubt over whether Lenovo can replicate its success in the PC business into tablets and smartphones.

Despite the big share prices fall, So doesn't advise bargain-hunting mainly due to technical reasons.

Lenovo is down 1.8% at HK$5.60 and its intraday low of HK$5.55 marks a 25.7% fall vs June 20 close of HK$7.47.


Source: Dow Jones Newswire

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DJ MARKET TALK: Lenovo Rebounds 2.3%; Continues To Buy Back Shares

1007 [Dow Jones] Lenovo (0992.HK) rebounds 2.3% to HK$5.77, after slumping 24.5% over the past 12 sessions due to concerns of growth slowdown.

The rebound is likely being aided by the continued shares buyback, with Lenovo buying 6.902 million shares at HK$5.54-HK$5.69 Monday, according to an exchange filing.

This marks the ninth repurchase by Lenovo starting June 25, with a total of 36.356 million shares being bought back, based on a calculation by Dow Jones Newswires.

Total amount is worth HK$209.8 million at Lenovo's current share price, or 0.35% of its market cap--while not a significant amount, it does reflect the company's view the recent selloff is overdone.

Source: Dow Jones Newswire