Thursday, 17 December 2009 08:02
Shares of SIGA Technologies, Inc. (NASDAQ:SIGA) have rebounded nicely after last week's drop to below five dollars on news that the pending Biomedical Advanced Research & Development Authority's (BARDA) amendment to the outstanding Request for Proposal for Smallpox Antiviral for The Strategic National Stockpile (RFP-BARDA-09-35).
The stock had aso been hit with some dillution concerns after their offering of 2,725,339 shares of common stock to a select group of institutional investors at a price of $7.35 per common share just days beore the BARDA RFP was delayed.
Shares traded as high as $6.41 on Wednesday after investors became aware that the Director of the company had added a few shares to his position in an insider buying transaction.
After listening to the conference call on Monday, it's my opinion that nothing has fundamentally changed with the short, mid or long term future of the company and - amendment or no amendment - the BARDA contract could still be announced at any time. In addition, some sources are telling BioMedReports that the company could be in line to recieve a $20+ million grant from the NIH within days, although there has been no solid confirmation of those rumors.
Those long termers that were willing to buy into last Friday's dip have already seen a nice return on their investment; although I'm not yet ready to believe that the volatility is over until we see some news.
Disclosure: long SIGA
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