Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Sanmina-SCI (Nasdaq: SANM) dropped 22% in intraday trading today, after announcing the resignation of its president/COO and lowering its current-quarter guidance.

So what: President and COO Hari Pillai has resigned effective immediately, but will still consult for the company under terms that are not yet finalized. Management indicated that non-GAAP EPS for the current quarter, which ends April 2, will likely land between $0.28 and $0.32, well below the consensus estimate of $0.41. 

Now what: Sanmina-SCI does not plan to replace Pillai; the CEO will take over his duties. Management blamed the downward guidance on delays stemming from federal budget uncertainty, a labor strike in India, and short-term softness in the optical market. If the challenges are really as short-term as described, the stock’s P/E ratio of 9.2 could make this an attractive entry point. 

Interested in more info on SANM? Add it to your watchlist.