Near-Term Uncertainty Makes SIGA Technologies a Low-Risk Buy

The investment analysis below is our ninth in our ongoing series of guest write-ups, and is brought to you by a friend of the blog, Ryan Morris. Ryan is managing partner at Meson Capital, a focused, value oriented hedge fund based out of New York/Toronto (we would note that Ryan is also a Contributor at Sum Zero, a member of both VIC and DDIC, as well as the newest "value voice" at the fantastic CGI Value). Meson was formed in February 2009 and has returned north of 400% net to partners since its inception (for what it's worth, we actually had to rub our eyes a bit the first time we saw it. Incredible no?).

Anyhow, we found Ryan's write-up on current AAOI Partners Fund holding SIGA Technologies (NASDAQ:SIGA) to be not only cogent and concise, but particularly timely given the company's recent developments and the minimal reaction to what was undoubtedly a game changing event for the company and its future.

With SIGA (much like we saw recently with Premier Exhibitions), Mr. Market appears to be temporarily asleep at the wheel yet again, as a recently awarded government contract should have (but luckily did not, as of yet) driven the companies shares substantially higher. Call us crazy, but when a company is awarded an enormous contract worth potentially multiples of its current stock price and the stock barely reacts, an incredible mis-pricing - and therefore opportunity - has just occurred.

Not that we're complaining by the way (we'll take it :)), we just can't help being a little shocked by both the frequency and magnitude of the the market's myopia on occasion. Regardless, one thing is clear: Situations like this are the type of low-risk, high-return investment opportunities that we as investors live for. We think you'll agree.


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Above Average Odds Investing is dedicated to the premise that there is a “better way” for the average investor to protect and grow their wealth over time. Hopefully, AAOI – through real time investment analysis and commentary, as well as a variety of helpful resources - will act as a “catalyst” for those investors who for far to long have invested in a manner contrary to their best interest (i.e., where the odds are significantly stacked against them).

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