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As shares of SIGA dip below the ten dollar mark, it might be time to take full notice of what's going on with the stock and what might be ahead.

Less than two months ago SIGA was again awarded a BARDA contract to supply the nation's biodefense stockpiles with its ST-246 antiviral. Again, however, the contract award was marred by a Chimerix protest and it was put on hold pending further investigation.

On top of all that, the US Congress stepped in when the Republican from California, Darrel Issa, who serves as Chairman of the House Oversight Committee and who himself has ties to Chimerix, launched an investigation into the influence that SIGA investor Ron Perelman might have had in landing the contract.

The latest Chimerix protest was subsequently pulled after some wording was altered in the contract -wording that was irrelevant in the big scheme of things - which freed SIGA to start supplying the national stockpile with 1.7 million doses of ST-246.

In the meantime, SIGA's short interest has been hovering right around 20%, according to statistics posted on Yahoo! Finance, indicating that there's a pretty good chunk of shares out there that are wishing to apply some downward pressure on the stock.

Since SIGA is as highly a watched stock as others in the sector, not even the re-awarding of the contract news or the pulling of the Chimerix protest was enough to kick start the reinvigorated run that many predicted.

In fact, quite the opposite has happened, as the shares short have been able to keep a lid on any possible move higher.

That said, with the contract underway, and BARDA set to start paying for its order of 1.7 millions courses of ST-246, the lid might not be kept on forever.

From an investor's standpoint, the lower this stock trades, the better deal it starts to look like it is, and although many out there don't like to see the value of their investment tick lower, the shorts might actually be doing us a favor in the long run.

The future has never looked brighter for SIGA. Judging by the tone of recent statements by BARDA in published announcements, and the enthusiasm put behind the contract award, this could only be the beginning of a long relationship between SIGA Technologies and the US Government.

There has also been some interest by foreign governments in ST-246, opening the doors to a potentially very lucrative future for this company as it simultaneously takes the steps to advance this product through the FDA regulatory process.

Also take note of the fact that institutions and insiders have a heavy interest in SIGA shares, both key positives for those that look for signs that big players are confident enough to put their big money behind an investment.

So, discouraging as it may be for some to see the SIGA share price dip, it becomes awfully tough to ignore the buying opportunity that may be presenting itself. With all that's going on for the company right now, I don't think that this stock will have any trouble surpassing its current 52-week highs as the short interest lightens up and the government cash starts filling the SIGA bank account.

Sometimes the shorts ain't such bad guys after all.

Disclosure: No position.

Source: SIGA Shorts Create a Buying Opportunity