Which Is The Best Buying Opportunity? Sanmina Corp (SANM) and Seventy Seven Energy Inc (SSE)
New York, NY – GDP INSIDER – 04/22/2014.
This article discusses two companies: Sanmina Corp (NASDAQ:SANM) and Seventy Seven Energy Inc (NYSE:SSE)
Sanmina Corp (NASDAQ:SANM) reversed its recent upward trend with the stock falling 11.43% or $2.67 to finish the day at a closing price of $29.69 on very active trading volume of 4.27 million, compared to its 30 day average trading volume of 0.474 million. The California-based integrated manufacturing solutions provider began to drop yesterday after it announced second quarter fiscal 2015 results which missed market consensus expectations. The company reported earnings of 50 cents a shares for the second quarter, missing analysts’ estimates of 52 cents a shares by 2 cents a share. Revenue for the second quarter grew 2.7% year over year to $1.52 billion, compared to $1.48 billion for the same period in the prior year, but missed analysts’ expectations of $1.6 billion by $0.08 billion for the quarter. Sanmina Corp also issued lower than expected forecasts for the next quarter, with revenue expected to be between $1.5 billion and $1.55 billion and earnings in the range of $0.48 to $0.52 a share, missing analysts’ expectation of reporting revenue of $1.64 billion and earnings of $0.56 a share. Unless Sanmina Corp can reverse this trend and with RSI of 26 the stock will struggle to make its one year target estimate of $24.21, hold.
Seventy Seven Energy Inc (NYSE:SSE) continued its downward trend yesterday with the stock declining a further 9.66% or $0.48 to close at $4.49 with more than 1.172 million shares trading hands, compared to its three month average trading volume of 1.38 million. The US-based diversified oilfield services company has been steadily declining for the last 6 months, losing 81.78% and so far this year, it has already lost 22.58% YTD compared to the S&P 500 which is up 0.81% since the beginning of the year. Like most companies in the sector, Seventy Seven Energy Inc is suffering from the decline in oil prices and lack of investor confidence in the sector as a whole, but is still performing better than many of its competitors. The company is managing to buck the overall downward trend of most companies in the batter oil and gas sector, by increasing its share price by 42.53% in the last month. With quarterly revenue only declining 3.10% year on year and RSI of 50.21, the company is a medium to long term hold.
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