Sanmina-SCI: A Bargain at Current Prices

Sanmina-SCI (SANM) is one of the most undervalued stocks trading on the NASDAQ market. Currently trading at under 8 times earnings, a consensus 2008-2009 YOY earnings growth of 53%, and a PEG ratio of approximately one third the industry average, SANM is a steal at this level.

Sanmina-SCI has partnered with Lockheed Martin (LMT) to bid on a $3.5B  contract to build the Army's next-generation intercom system. Sanmina already provides communications systems for Army helicopters and Marines fighting in Iraq, and the Sanmina/Lockheed team has a 90% Chance of winning the contract. The Army has not said when it will announce the award, but it had been expected in June, per the Huntsville Times. I believe that the contract is due any day, and will likely be announced prior to Sanmina's earnings call next week.