Buzz Stocks: Giga-tronics, Incorporated, Mattress Firm Holding Corp, and NQ Mobile Inc (ADR)

Today's stocks to watch include Giga-tronics, Incorporated (GIGA), Mattress Firm Holding Corp (MFRM), and NQ Mobile Inc (ADR) (NQ)

Dec 1, 2015 at 9:29 AM

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GIGA

Following Asia's lead, U.S. indexes are set to bounce back from Monday's losses. Among the equities in focus are test measurement manufacturer Giga-tronics, Incorporated (NASDAQ:GIGA), sleep specialist Mattress Firm Holding Corp (NASDAQ:MFRM), and Chinese mobile Internet interest NQ Mobile Inc (ADR) (NYSE:NQ).

GIGA is preparing for a big day on the charts, up 120.7% in electronic trading, after announcing it has entered into a licensing agreement with Lockheed Martin Corporation (NYSE:LMT). Under the agreement, Giga-tronics, Incorporated will create new threat simulation software, which is expected to be ready within six months. GIGA has been struggling to gain momentum since spiking north of $3 in May, settling at $1.11 on Monday. Short interest on the stock has declined by more than 50% over the last two reporting periods, but current levels still account for more than six days' of trading, at the stock's typical trading volume.

MFRM is poised to pop 10.4% this morning, after closing Monday at $49.36. The company announced yesterday evening that it is buying competitor Sleepy's in a $780 million deal, which is expected to add $1 billion in annual sales. The purchase should be completed by mid-2016. Mattress Firm Holding Corp has been attempting to make up ground since its early-September bear gap, when the company announced disappointing quarterly profits, and downwardly revised its full-year outlook. Near-term options traders have grown put-heavy on MFRM recently. The stock's Schaeffer's put/call open interest ratio (SOIR) stands at 1.51 -- higher than 86% of readings from the past year.

After mostly trending sideways since early October, NQ is preparing for a 15.4% drop ahead of the opening bell today, after reporting uninspiring quarterly earnings and opting to "suspend the practice of providing revenue guidance." Short interest on NQ Mobile Inc dropped marginally after the company agreed to sell Beijing Tianya Co., Ltd. in mid-November, but it still accounts for 12% of the stock's available float. At NQ's average pace of trading, it would take almost three weeks to buy back those shares. Still, it's options traders who could abandon ship today. NQ currently has a SOIR of 0.16 -- just 2 percentage points off an annual low -- indicating that near-term options traders have rarely been so call-heavy. On Monday, NQ closed at $4.22.

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