Trade-Ideas LLC identified

Giga-tronics

(

GIGA

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Giga-tronics as such a stock due to the following factors:

  • GIGA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.5 million.
  • GIGA traded 314,495 shares today in the pre-market hours as of 8:10 AM, representing 10.6% of its average daily volume.

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More details on GIGA:

Giga-tronics Incorporated 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 average volume for Giga-tronics has been 46,400 shares per day over the past 30 days. Giga-tronics has a market cap of $7.5 million and is part of the technology sector and electronics industry. The stock has a beta of 0.37 and a short float of 2% with 0.03 days to cover. Shares are down 22.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Giga-tronics as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 42.0% when compared to the same quarter one year ago, falling from -$0.44 million to -$0.63 million.
  • Net operating cash flow has significantly decreased to -$0.49 million or 182.13% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Looking at the price performance of GIGA's shares over the past 12 months, there is not much good news to report: the stock is down 34.12%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, GIGA-TRONICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • 41.19% is the gross profit margin for GIGA-TRONICS INC which we consider to be strong. Regardless of GIGA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GIGA's net profit margin of -14.37% significantly underperformed when compared to the industry average.

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