The perception that management is competent and working to achieve shareholder value has flipped 180 degrees since then. Much of a stock's price is based on a perception of truth. The truth is that when you have control of a small entity by a large well-known venture capitalist, and the venture capitalist has historically not worked in the best interest of the public company's shareholders, it becomes less valuable than a similarly situation entity.
Secondly, the size of the contract is looked at in a more skeptical manner. The potential may be there, but what will actually be able to be realized in this environment of ever increasing deficits? Will BARDA get the same level of funding?
Lots of stock uncertainty even after the lawsuit on top of industry uncertainty as to the future of government contracting.
The stock was doomed from the get go. SIGA's former CEO successfully sued Perelman for a $16M wrongful dismissal suit last year. Perelman would never part easily with his money. Drapkin on the other hand may have screwed SIGA with the shoddy Pharmathene dealings, perhaps as payback for what we may never know who ultimately said what to whom & for why.
"The truth is that when you have control of a small entity by a large well-known venture capitalist, and the venture capitalist has historically not worked in the best interest of the public company's shareholders, it becomes less valuable than a similarly situation entity."
This holds very true in several of his other major public holdings. No one would touch Revlon after what had been done to shareholder value over the last 2 decades. After 20 years of reverse splits $500 worth of stock in 1998 now yields shareholders $21.
With Chimerix's IPO somewhere around $13-15, they most likely will stand to split the remainder of the BARDA contract for BARDA's smallpox antiviral so the future exclusivity delivery by SIGA for the remainder is at question. CMX has other indications they will file FDA for by next year. ST-246 has been placed on the back burner for now. Too bad greed and money got in the way of a potentially great company. Hruby I hope is enjoying his well deserved retirement on over $5M worth of cashed in shares. Other than perhaps a few other since vanished longs, he sold at the top. it was public info.
Now in other news Aljazeerq reports Syrian jets bombing Lebanon.
Yes, not only a fair question but also an excellent question--
reminds me of the answer Jon Voight gave to the sheriff in
the movie Deliverance --when asked about the boats and where
the incident happened--down the river---
Voights answer looking the sheriff straight in the eyes--
"I don't know"-
I’ll tell you. Back then SIGA spoke confidently of ST-246 shipments to BARDA and ROW, filing for FDA approval, finalizing production details, getting annoying legal challenges out of the way, moving an exciting pipeline like Dengue cures and broad-spectrum antivirals along...