Sanmina’s Dip: A Market Mood?

Right. Sanmina. (SANM 21.56%). The stock had a day, didn’t it? Down nearly 22%. Honestly, it’s enough to make one question everything. All those carefully constructed portfolio projections. All the affirmations about being a long-term investor. It’s all very well saying that, but when a stock plummets, one tends to feel…exposed. Like one’s financial life is a particularly embarrassing photo being circulated at a party.

They announced their quarterly earnings, which, on paper, were…fine. Actually, better than fine. Net sales up to $3.19 billion – a good jump from the $2 billion-ish of the previous year. And net income, not adhering to those terribly strict GAAP rules (because who really understands those?), was up too – over $132 million. I mean, it’s not like they’re losing money. It’s just…the market seems to have a very particular idea of what “good” looks like these days.

Units of Cryptocurrency Lost: 0 (thank goodness). Hours Spent Refreshing Stock Charts: Approximately 7. Number of Times I Considered Taking Up Knitting: 3. It’s the AI boom, you see. Everyone’s expecting exponential growth. And Sanmina, apparently, isn’t delivering enough of it. They’re involved, naturally. Communications networks and cloud infrastructure – all very hot right now. But it’s never enough, is it?

The guidance, that’s the real issue, I think. They’re projecting net sales of $3.1 to $3.4 billion for the next quarter, and adjusted net income of $2.25 to $2.55 per share. Which, if you’re into that sort of thing, is apparently a bit lower than what the analysts were hoping for. They wanted $3.52 billion, you see. It’s like they’re grading Sanmina on a curve that doesn’t exist. It reminds me of school reports. “Shows potential, but needs to apply themselves more consistently.”

I’ve been reading a lot about market history, you see. And this kind of reaction…it’s not entirely new. The market has always been prone to these fits of irrational exuberance and equally irrational panic. It’s a bit like a particularly demanding boyfriend. One minute you’re perfect, the next you’re being told you’re not living up to your potential. It’s exhausting.

Honestly, I think this sell-off is a bit overdone. Sanmina’s valuations are relatively modest. Which, in this market, is practically a bargain. It’s a buy-on-weakness opportunity, they say. But then again, they also said that about my last dating app subscription. One lives and learns. Or, more accurately, one loses money and then pretends to have learned something.

Number of Times I’ve Reconsidered My Life Choices Today: 5. Number of Cups of Tea Consumed: 4. I think I need another one.

2026-01-28 03:12

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