Tuesday, November 24, 2009
SIGA: Shares of Siga Technologies, Inc. broke the eight dollar mark Tuesday afternoon on anticipation of the possibility that some big government orders could be imminent.
BioMedReports issued a mid-day trade alert on Tuesday, alerting readers that the recent price action of the SIGA stock could indicate that news is pending.
If news hits that the government has in fact placed a big order with SIGA, the stock could move fairly significantly as shorts cover and new investors buy in based on the possibility of additional orders from the government.
While I'm not an owner of the SIGA stock, I am the owner of some call options that I will hold in anticipation of news.
If an announcement of government orders does hit - SIGA shareholders may enjoy a very happy holiday season.
I don't suggest chasing a stock without doing the proper DD, but when the government likes a company - that company could turn out to do very well in the future as additional government orders becomes an immediate possibility.
Keep an eye on SIGA.
Disclosure: No position in SIGA, long some call options.