"Favorable Supreme Court Appeal Ruling, Raising Price Target to $11-Reiterate OUTPERFORM".
We view the decision of the Supreme Court to reverse the lower court's 50% profit remedy and direct the court to restrict its damages to "contract expectation damages" as a victory for SIGA, and expect any subsequent damage remedy to be immaterial to SIGA. Expectation damages are designed to put the aggrieved party in the position they would have enjoyed at the time of the breach of contract, in this case, in 2006, which was prior to any ST-246 procurement contract. PIP's "legal victory" is hollow as Vice Chancellor Parson's has already ruled that a specific lump sum for expectation damages is "speculative, uncertain, contingent and conjectural" and therefore, inappropiate."
Today's action will be interesting. I am curious to see how it plays out. I think we get back to 4.30-4.50 level.
Wedbush is obviously bullish, but several things aside, this is why we will go up IMO:
1. Siga longs believe this is a win. Some of those funds will start to buy again with some hangover removed.
2. With price moving up so much last week, day traders will move in.
3. Shorts are 20% float. Most won't cover, but some will take $ off the table.
4. Payments for shipments will be coming soon. Revenue for siga. More delays for pip.
5. Pip will do a secondary, so they don't have to tap into ATM. Will look bullish for siga.
I am long and obviously biased. But considering we are around $4 right now, I think this is all possible.