Why Sanmina Stock Just Got Sacked

Sanmina (NASDAQ: SANM) investors awoke to disappointment Tuesday, and the industrial stock is down 7.3% through noon ET despite what appears positive news.

Deep in the heart of Texas, Sanmina Corporation plans "a major expansion of its Energy business with a new state-of-the-art factory in Houston." Opening in 2027, the new factory will target the U.S. energy market and be "capable of building a broad range of high-quality energy products, including: medium-voltage distribution transformers, instrument transformers and switchgear."

Sanmina also noted that it has signed an agreement with Croatia's Koncar Electrical Industry, to co-design a custom medium-voltage transformer that Sanmina can sell in the U.S.

Source Fool.com