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Sanmina Corporation Message Board

  • martinwitton1427 martinwitton1427 Aug 8, 2008 11:32 PM Flag

    Take-Over very possible

    If you look at the pro-gap non performa numbers over Q2 & Q3. You will see this is a tremendous canidate for a buy-out. The question I have is the potential number we may be looking at. The range I would calculate would be anywhere from $4.27 to $5.62 a share. I realize that is quite a wide range, but considering the public information that is able to be obtained it is the best I can do. Furthermore if there is a buy-out it will need to be fairly soon as this stock is gaining momentum. The shorts are starting to get squeezed causing the upward momentum to increase even more. Any thoughts or calculations to buy-out and]or short squeeze?

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    • The short squeeze starts at $2.44 which is the 52 week intraday high. The two year intraday high is $4.44. Figure any offer over $4.50 allows anyone that bought in the last two years to get at breakevern or with a profit and anyone that short in the last two years to be under water.

      OTOH, why would anyone buy SANM? To be a takeout target you have to have a lot of costs that can be squeezed out by the buyer. I don't see a private equity firm doing the deal as they can't squeeze the costs out of SANM as a standalone company. So that leaves some large player in their industry that could get rid of redundacy between the companies but who is that and how much redundacy is there?

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