Diamonds and Dogs
6/17/14Giga-tronics Inc. (GIGA)
The diamond of the day is Giga-tronics Inc. The company's stock price exploded after receiving an order of $2.4 million for its precision scalar analyzers, which record precise power measurements. Giga-tronics hopes to send out the equipment within the next 6 months. Due to this large order, Giga-tronics almost doubled by noon, and reached a 52-week high of 4.78 after skyrocketing 85%. This marks the second time within the last month that the micro-cap stock has doubled, leaving investors puzzled yet excited about the future of the company. Giga-tronics also has an earnings release in just under a week, so it could be a very volatile road ahead.
Ring Energy, Inc. (REI)
Ring Energy, a company focused on the development and exploration of the production of oil and gas in Texas and Kansas, is today's dog. After announcing its definitive agreement to issue 2,000,000 restricted shares of the company's common stock for $15 per share, the price of the stock fell to 17.32 or down 10.68%. Along with this, Ring Energy established a new senior secured revolving credit facility with SunTrust Robinson Humphrey, Inc. This agreement allows the company to have an initial borrowing base of $40 million. Ring Energy had just reached a yearly high of almost $21 after reporting earnings just below analysts' estimates, but looks like it may lose some steam after these announcements.