Sanmina (SANM) — This company provides integrated electronics manufacturing services to original equipment manufacturers (OEMs).
On Sept. 23, with the stock at $22.63, I recommended selling it short saying, “Technically SANM broke down from an intermediate trendline that began in April, as well as its 50-day moving average. There is no evidence of a high-volume selling climax, i.e., bottom, and MACD is very bearish. It appears the selling could continue until support is reached at its former breakout price of $18.
On Friday, SANM broke through its 200-day moving average, falling 14% to just over $17, on what could be a selling climax. Therefore, I now recommend buying shares to cover for a nearly 25% profit in just three weeks.
The stock may continue lower, but let someone else ride it down. As they say, “Bulls make money, bears make money, pigs get slaughtered.”