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Shares of Siga Technologies (SIGA) opened the new trading week on quite the run. Volume of nearly five times the norm sparked a thirty percent price spike as SIGA closed near the high of the day.

As recently as last week we noted at VFC's Stock House that shares of Siga Technologies (NASDAQ:SIGA) may have been entering buy territory. Siga had opened 2012 strong, with a run in February run pushing shares close to the four-dollar mark, a price level that was predicted by some media outlets at the time.

The four-dollar level never was breached, while SIGA quietly and quickly slipped back to previously-traded levels of under three bucks. Although the prices didn't hold at the time, the recent volatility of the stock belied Siga's long term potential to rebound, and as we saw on Monday, it also didn't give justice to the short-term potential for quick gains, too.

Since being awarded a huge government contract by the Biomedical Advanced Research and Development Authority of the United States Department of Health and Human Services (BARDA) last year for the smallpox antiviral ST-246, you'd think that the good times would be rolling for Siga, but some high profile conflicts-of-interest and a legal battle with almost-partner turned legal rival PharmAthene (PIP) have depressed the share price and shaken the confidence of investors.

PharmAthene made out like a bandit as the result of litigation that revolved around a partnership agreement that the two companies were discussing years ago. PIP argued that Siga unfairly backed out of the deal at the last minute - after an agreement was essentially in place, while Siga stated that the deal was never consumated. PharmAthene was able to sway the judge to rule in its favor and for that the company won 50% of all ST-246 profits after Siga banks the first forty million.

Naturally Siga is asking for a review of the decision, but the continued supressed SIGA share price is an indication that investors may not be too confident that the outcome is going to be much different this time around.

Monday's move came with no significant news announcements, but investors liked some chart indicators that broke out to the positive. Some will also speculate that news is on the horizon, maybe in relation to the decision review from which Siga could win a key reversal or - at the very least - be liable for a lesser amount of cash than the 50/50 split with PIP.

Of note, PIP also enjoyed a nice spike on Monday, flying higher by ten percent on average triple the norm.

It's been a very volatile couple of years for this company, with shares having traded for well over ten bucks before sinking again to the current levels. For a bit, they even traded for below two dollars. With that said, the current market cap is still less than half of what the BARDA contract award is expected to be worth and Monday's price action could be an indicator that investor interest is pouring back in.

If nothing else, SIGA continues to look like a good one to keep on the radar, play the volatility and/or load on the dips.

Disclosure: Long SIGA.

Source: Stock Watch: SIGA Opens The Week With A Bang