SIGA stock halted this coming Tuesday at 10:50 am.
Press Release at 11:20 am that Delaware Supreme Court has reversed the 50/50 split ruling and sent it back to Parsons to determine lower damages based on PIP's actual damages.
Stock re-opens at 12:30 pm. First trade at $7.07. Stock closes at $7.47.
Aaaah Alibibibibibi,......a fool and his money is soon parted. Nothing but day-traders hopping on a little momentum,....problem is the brilliant traders will scram like rats when they find out what they invested in. "What we don't control the product?"
Dollar stock makes it low risk for some, and they hope to catch a few pennies. You've had some good movement from ($1.40),....enjoy it.
The PIP conference call cometh, and so goes your money. Nothing like a legal update, followed by a legal update, and then another legal update because PIP produces?......right,.....that's crickets you hear!
Murtha gravy train days are over,....parasite days coming to an end soon.
That makes sense on the surface, but not if you think about it.
If SIGA loses the appeal, indeed PIP will shoot up. For like a second. And during that second, all the big powerful shareholders with jacked-in trading access will dump their shares faster than you can sneeze. Then the shlubs will spot the trend, and sell into the collapse in a panic. The stock will be left looking like a deflated tire. This is what I predicted would happen after Parson's decision (if it went against SIGA), and that's what happened.
PIP is not a long term proposition. It is a short term play. And individual investors simply cannot compete on such plays.
You may point to the income PIP will get according to this decision, figuring that's enough to keep the price up. But the problem is that that's all the income PIP will EVER get. And no one is going to buy PIP to get in on that. All sellers and no new buyers equals a very, very bad scene. Again, that's what happened when Parsons announced his judgement. The stock shot up for an instant, and then turned to mush, and it's been mush ever since.
I don't disagree that SIGA bulls are hedging. Some are big guns with fast, priority trading access. Smart. Some are retail investors doing what appears, on the surface, to be the prudent thing. It's not. It's dumb. It's throwing money away even in the scenario that PIP wins (and, fwiw, I don't think they will. But, unlike the rest of this posting, which you can bank on, that's strictly a matter of opinion).
Considering I was giving the same prediction some months ago in my "Going on the Record" post, re the higher court reversing on the damages issues only, now you and the other Johnny come latelys are jumping on the same bandwagon as "your" prediction...LOL! Only difference is I got thumbs down for my post...LOL!
horrible prediction....... you think a change in the percentage of pay out ruling would change the stock price more than 20-30% in either direction?... no chance in hell....... which is close to same chance as an overturning has of happening
"Change in the percentage of pay out ruling"? Say what? Is that friggin English or Swahili legalize?
Try this....50% of the net profits ends up going to zero.... Now if that happens do you think the stock might go up a tad more than 20-30% of the currrent $4 price?
Putzzzzzz, I never said there would be a change in the percentage. There will be NO such thing. PIP will get a flat amount below $10M and SIGA will keep all the profits from the drug. And YES, that will cause a dramatic swing in the stock prices of BOTH companies. As much as the Supreme Court will not want to over-rule Parsons, they HAVE to, unless they want to re-write the laws of Delaware and New York.