Giga-tronics Incorporated (NASDAQ: GIGA)
Giga-tronics Incorporated (GIGA), a company that develops test and measuring equipments for electronic, wireless, and automated systems yesterday announced that it has signed a software agreement with Lockheed Martin. The agreement states that together they will develop and license threat simulation software as a commercial product.
Giga-tronics Incorporated CEO Comments
John Regazzi, President and CEO of Giga-tronics, said
“Lockheed Martin was one of the initial Advanced Signal Generator customers, this partnership demonstrates their belief in its potential and capabilities.” Globe Newswire
Mark Elo, Vice President of Marketing of Giga-tronics, said
“This is a win for the Electronic Warfare community, Lockheed Martin and Giga-tronics. The threat generation software is built by a team that has a strong legacy of program support and brings many new capabilities in a Commercial Off the Shelf solution that is both ready as a turnkey bench solution or a scalable alternative for larger projects.” Globe Newswire
GIGA Technical Analysis
GIGA gapped up in price yesterday to $2.50, up from the prior day’s close of $1.11, which is a 125% increase on the favorable news. Taking a look at the daily chart, we can see the last time GIGA traded at this price level was on May 19th, when it traded at highs of $2.74. Ever since that date in May GIGA has been on an overall decline, eventually reaching its 52 week low price of $0.86 on September 29th. The last two times GIGA has traded on this amount of volume was on May 13th and 19th and both times it spiked up dramatically to $2.98 and $3.15 respectively. With this gap up and increase in volume I would expect GIGA to break through the $3 price level. GIGA has a low float of 4.76 million shares and was trading over 320 times the normal daily trading volume. GIGA did reach pre market highs of $2.80, but gave back $0.30 at the open, or equivalent to 11%. For trading purposes, my entry point would have been $2.60 looking for a run through $3.00. My stop loss would have been $2.45, fearing anything below that and the stock would start to fill in the gap up.
Giga-tronics Incorporated, together with its subsidiaries, designs, manufactures, and markets a range of test and measurement equipment used in the development, test, and maintenance of wireless communications products and systems, flight navigational equipment, electronic defense systems, and automatic testing systems. The company operates in two segments, Giga-tronics Division and Microsource. The Giga-tronics Division segment offers signal sources, generators, and power measurement and amplification instruments for use in the microwave and radio frequency range of 10 kilohertz to 50 gigahertz. This segment also produces switching systems that operate with a bandwidth from direct current to optical frequencies primarily for the defense, aeronautics, communications, satellite and electronic warfare, commercial aviation, and semiconductor markets. The Microsource segment develops and manufactures a line of yttrium, iron, and garnet tuned oscillators, filters, and microwave synthesizers for use in operational applications, as well as in manufacturing a range of microwave instruments and devices. Its products are primarily used in the design, production, repair, and maintenance of commercial telecommunications, radar, and electronic warfare equipment. The company markets its products through various independent distributors and representatives to commercial and government customers in the Americas, Europe, Asia, and internationally. Giga-tronics Incorporated was founded in 1980 and is headquartered in San Ramon, California. Yahoo Finance