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Shares of SIGA Technologies (NASDAQ:SIGA), Inc. traded down by over three percent on Thursday in what I consider to be more of a 'tree shake' than any kind of sell-off.

Investors are still expecting an announcement any day regarding a possible BARDA small pox contract, and impatient investors are sure to get antsy with every day that goes by without a contract announcement. It's those investors that are targeted with a 'tree shake', when the share price of a stock is dropped on relatively low volume in order to 'shake shares' from those with weak stomachs who sell at the slightest sign of trouble.

The tree shake also takes out stop loss orders and, more often than not, in a tree shake - once the stop losses are eaten up the stock will rise again.

In the case of Thursday's decline, the stock was dropped late day on a series of 100 share orders that, in my opinion, mean little to the big picture and potential of the SIGA stock, especially with a BARDA announcement possibly imminent.

If bad news regarding the contract were leaked, then I think that we would have seen much more of a sell-off than we saw yesterday; volume came in below the three month average.

It's status-quo for SIGA's short term future, a waiting game until we hear from BARDA.

In my opinion, news is probably pretty close.

Disclosure: VFC is long SIGA call options.

Source: SIGA: Thursday's Drop Was Nothing but a Tree Shake