Trade-Ideas: Sanmina (SANM) Is Today's Weak On High Relative Volume Stock

Trade-Ideas LLC identified Sanmina ( SANM) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Sanmina as such a stock due to the following factors:

  • SANM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.8 million.
  • SANM has traded 477,196 shares today.
  • SANM is trading at 22.13 times the normal volume for the stock at this time of day.
  • SANM is trading at a new low 17.06% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on SANM:

Sanmina Corporation provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services worldwide. SANM has a PE ratio of 6. Currently there are 2 analysts that rate Sanmina a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Sanmina has been 611,200 shares per day over the past 30 days. Sanmina has a market cap of $2.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.03 and a short float of 2.4% with 3.12 days to cover. Shares are up 41.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Sanmina as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, attractive valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • SANM's revenue growth has slightly outpaced the industry average of 3.0%. Since the same quarter one year prior, revenues slightly increased by 5.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 129.41% and other important driving factors, this stock has surged by 35.19% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SANM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, SANMINA CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 105.9% when compared to the same quarter one year prior, rising from $14.75 million to $30.36 million.

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