Sanmina Corporation (NASDAQ:SANM)

schwab pick

bought this for real, it was this month's only hit on my most discriminating screen.

This has bottomed out, IMO. Absence of any insider selling for 6 months to me indicates that I'm not alone in that view.

Should climb to at least $15 and $22 is quite possible.

Hot Off the Presses:
http://localizedusa.com/2011/11/02/sanmina-sci-sanm-shares-given-new-13-00-price-target-by-needham-company-analysts/

Over sold based on current market valuations vs long term outlook, short and long term buy at $8.43 as of 02Nov2011 closing price.

at one point in time i workrd there for 15 plus years, they still need help at the top of management

Trailing P/E (ttm, intraday): 7.32
Forward P/E (fye Oct 2, 2012)1: 5.07
PEG Ratio (5 yr expected)1: 0.36
Price/Sales (ttm): 0.14

Strong balance sheet in an industry positioned to benefit from improving economic situation.

its good
not to good
try observe it carefully
bad stock

m4m pick

Large

Management changes, better financial strategy, and selling of non-core manufacturing to focus on OEM contract manufacturing.

Lost money on this stock in real life. Company and stock seems to be going nowhere. Bad investment.

In a year or so this company will get it shop in order and its market will stablize.

Company has cash, and its book value is more than its share price. The company is bruised and has been for some time, but I do not believe it is broken.

As of close of business on 2/20/08, this was a 5-star Morningstar stock trading at less than half of its Morningstar fair value.

Poor management

For the second quarter ended March 31, 2007, Sanmina-SCI reported revenue of $2.61 billion, down from $2.78 billion in the first quarter of fiscal 2007 ended December 31, 2006 and modestly down from $2.67 billion reported in the second quarter of fiscal 2006 ended April 1, 2006. Net income for the second fiscal quarter of 2007 was $793 thousand, down from the first quarter net income of $34.7 million.

Sanmina’s has been working on its restructuring plans with restructuring going on in it’s in the components business, due to which it was negatively affected. The company generates approximately 20% of its revenues from the sale of electronic components, specifically bare printed circuit boards, high-end backplanes, cables, enclosures, machining, optical modules, and plastics. The most recent quarter’s results highlighted ongoing problems in this business, as the sales from this business declined 20% sequentially; driving the company’s operating margins down 100 basis points from 2.5% to 1.5%.

The company’s most recent restructuring plan calls for selling off non-core assets—its PC assembly business, a memory module business, and other assets. The management is looking out sell of its underperforming PC business but the company is unlikely to find a buyer of its PC business. Additionally two of the company’s PC customers, IBM and HP, are customers in other segments of the company’s business, accounting for almost 10% of the revenue. Walking away from the PC assembly business is also expected to trigger business losses in the other segments of the company.

With end demand headwinds in major markets compounding an already cloudy roadmap in its components business, Sanmina is unlikely to impress the investors in the coming months.

Horrible management and inability to vertically integrate

Stock has been in a slump for quite some time, making several attempts to bounce out only to have market jitters beat it back down. This stock is $4.50 - $5.00 before the end of calendar '07.