Dell Inc. (DELL), Hewlett-Packard Company (HPQ): The Speculative PC Play on the Bidding War

If investors still care about PC makers, they should look at Lenovo Group Limited (PINK:LNVGY). Lenovo seems to have a much stronger balance sheet than Hewlett-Packard Company (NYSE:HPQ). As of March 2013, it had nearly $2.7 billion in equity, nearly $3.7 billion in cash and around $600 million in both long and short-term debt. The goodwill and intangible assets came in at only more than $3.3 billion. Lenovo has surpassed Dell Inc. (NASDAQ:DELL) to become the second largest global PC maker after Hewlett-Packard. In the first quarter 2013, while the total industry dropped by as much as 14%, Lenovo Group Limited (PINK:LNVGY) was the best performing player, experiencing nearly no decline. Interestingly, it also opened its PC production in North Carolina. Despite the higher production cost in the U.S. compared to China, Lenovo sees that the manufacturing facility in the U.S. would enable Lenovo Group Limited (PINK:LNVGY) to expand its footprint in the U.S. market. Its Chairman and CEO set the goal for Lenovo to become the leader in the global PC industry within this fiscal year.

My Foolish take

Three global leading PC makers could be investment opportunities for different reasons. Dell Inc. (NASDAQ:DELL) could be considered the speculative play on the bidding war. Hewlett-Packard Company (NYSE:HPQ) is the play for its aggressive ongoing business restructuring and Lenovo Group Limited (PINK:LNVGY) is a good stock for investors because of its strong performance in the global PC market and its U.S. expansion.

Anh HOANG has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Anh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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