Steve Massocca, Managing Director of Wedbush Securities was a guest on CNBC Friday. Massocca likes CBLI and SIGA technologies, two biodefense stocks that we have covered quite actively and continue expecting government grant/contract news from.
Prior to the good news about the late U.S. budget deal that will avoid a costly shutdown, Massocca was asked if there were any specific stocks is that might get impacted by a government shutdown because they depend on government revenues. Massocca responded: "Well, yeah. a couple of names I wanted to mention today were SIGA Technologies (Nasdaq:SIGA) and Cleveland Biolabs (Nasdaq:CBLI), two companies expecting government contracts. Cleveland biolabs has an antiradiation poisoning product. Siga Technology has a defense for smallpox if there was bioterrorism. Both companies were expecting large government contracts shortly."
Question: So you like them despite even if they get hit?
"I would like them -- well, I like them and I would really like them if they did get hit," Massocca explained. "I'd be looking to buy these stocks if they got hit based upon a government shutdown. This is one of the things I'd be looking to take advantage of. So, they haven't so far."
Shares of Siga Technology closed at $13.34, up 0.03 (0.23%) while shares of Cleveland Biolabs saw a significant increase in trading and call option activity starting prior to the televised interview. CBLI shares rose 0.42 (5.61%) to close at $7.91 and headed slightly higher in after-hours trading.
Meanwhile, shares of TapImmune, Inc. (OTC: TPIV), which we alerted subscribers about as a stock that many early biodefense investors are getting excited about closed even at $.32 after seeing several days of increasing trading volume and activity.
Days after our trade initial alert, the company released news that the U.S. Patent and Trademark Office (USPTO) had issued TPIV a Notice of Allowance for a U.S. patent claiming a vaccine composition containing TAP-1 and/or TAP-2 to augment the antigen processing capability of infected cells and hence their immunogenicity. According to company officials who are working with doctors at the Mayo Clinic on two programs, the composition may be used alone or as an adjuvant with a pox antigen-based vaccine, especially in the treatment or prophylaxis of viral infections such as smallpox.
As previsouly reported, analysts and investors who follow the company feel that shares and trading volume should continue to increase in the weeks ahead, given pending developments involding an Investigational New Drug (IND) Application for the company's vaccine technology to treat HER-2/neu positive breast cancer.
With only 20 million shares in the float TPIV traded from $.60 to as low as $.10 following their most recent financing and have traded as high as $1.70 within the last 18 months.
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