This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Giga Is Up

This has to be the most hotly anticipated earnings call since the Internet bubble.

Unless, of course, it's not.

Giga-tronics (GIGA), a tiny producer of test and measurement equipment for the wireless-communications industry, announced late Thursday it would release second-quarter earnings Oct. 30.

The stock surged 46% Friday to a two-year high of $3.76. Volume was 6.7 million shares for a stock that typically trades less than 10,000 shares a day. On Monday, the stock hit an intraday high of $4.27, 69% higher than Thursday, before closing down 15 cents, or 4% to $3.61 on volume of 1.9 million shares.

"On a normal basis, we don't give out any forward-looking information and nothing new has transpired," says Pat Lawlor, Giga-tronics chief financial officer. "I'm glad to see the stock go up, but there's no reason I know of."

It's possible that the San Ramon, Calif., company has done well, but not this well. The word on Wall Street is that day traders and message-board junkies are confused and have mixed up their tickers.

It just so happens a similar-sounding company, GigaMedia (GIGM), received a big boost Thursday when Bear Stearns began coverage of the stock with an outperform rating. On Thursday, GigaMedia's stock jumped 14% to $20.90 on volume of 2 million shares. Its average daily volume appears to be around 500,000 shares.

"It makes sense that it was a mix-up in the ticker," says Lon Juricic, editor of, a financial news Web site. "When you have a micro-cap stock that surges on no news, and the day before, a company with a similar name gets a nice boost from Bear Stearns, you can put two and two together."

Giga-tronics is on a bit of an upswing. The company says 70% of its business is government oriented. It sells products that airplane maker Boeing (BA) puts into its planes for the U.S. military.

For the fiscal year ended March 31, it posted a net loss of $1.9 million, or 39 cents a share, double the loss of $988,000, or 20 cents a share, the previous fiscal year. Annual revenue fell 12% to $18.0 million year over year. For its most recent quarter ended June 30, the company returned to profitability, earning $92,000, or 2 cents a share, reversing the year-earlier loss of $1.0 million, or 21 cents a share. Revenue jumped 37% to $4.6 million.

Surprisingly, the day after it announced a real profit, on July 31, the stock gained 20% on volume of just 129,620 shares. Not bad, but not the frenzy of Friday.

CFO Lawlor says the company's trends are positive after restructuring the business over the past year, which included reducing the staff by 20% and closing some facilities.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs