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SIGA Technologies, Inc. Message Board

csmclemore 5 posts  |  Last Activity: Jan 17, 2015 4:23 PM Member since: Jun 27, 2005
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  • csmclemore by csmclemore Jan 17, 2015 4:23 PM Flag

    So here are my predictions on a timeline as this all moves forward. I expect oral arguments before the DSC en banc to take place in June/July with a decision by the end of October, August at the earliest. Siga will continue to execute on the contract and rake in cash from the government during that time so, by the time damages are finalized, a bankruptcy that wipes out common shareholders and hands control of the drug to PIP simply will not be in the cards, even if the award stands as is... which is extremely unlikely. Siga stock will probably be delisted within the next few months, perhaps around May. I think this will be an excellent chance to pick up OTC shares on the cheap. In the end, Siga is likely to win on appeal as the damages award in its current state is just really poorly justified as Siga pointed out in their press release announcing their appeal. I don't expect a large follow on contract from BARDA until FDA approval is granted which will probably be in 2017 or 2018. I do expect a large follow on contract post FDA approval. I also think CMX-001 will be purchased by the government as the second antiviral for the stockpile, but in much smaller quantities. Despite any rumors to the contrary, Siga's product is vastly and overwhelmingly superior against smallpox and the government will be buying lots more of it for the foreseeable future. My only real fear is M&F attempting to take the stock private while it's down. See you all again in August/September!

  • Reply to

    Something to consider

    by jimdavist Jan 15, 2015 9:43 PM
    csmclemore csmclemore Jan 16, 2015 2:22 PM Flag

    enlighten me

  • Reply to

    Something to consider

    by jimdavist Jan 15, 2015 9:43 PM
    csmclemore csmclemore Jan 15, 2015 11:12 PM Flag

    Siga does have over $300 million available, $110 million in cash and over $200 million in more cash classified as deferred revenue, to pay any damages, capped at $194 million, that make it through the Del Supreme Court. Siga's appeal should be sorted out in three or four months. As jimdavist implies, the market just doesn't have much faith this latest award will survive the SC in its current form. Meanwhile, MacAndrew and Forbes is snatching up Siga shares on the open market and PIP insiders are selling. I look forward to the SC decision, I doubt they'll give Parsons a third chance.

  • From a September 2014 article on a Delaware Chancery decision:

    "In lengthy disputes where a judgment is entered as of a date several years in the past, prejudgment interest may constitute a more than trivial amount. In Levey v. Brownstone Asset Management, Consolidated C.A. No. 5714-VCL, the plaintiff, who prevailed at trial, sought to recover interest on the judgment amount at the constant rate of 10.25 percent from Jan. 26, 2006, forward. The defendants took the position that the interest rate should float, i.e., change whenever the Federal Reserve discount rate changed. The court agreed with the defendants and found that an award of a fluctuating rate of interest serves the dual purposes of compensating the judgment creditor for the loss of use of its capital during the pendency of the action and causes the disgorgement of the benefit the judgment debtor has enjoyed during the same period of time.

    Read more: http://www.delbizcourt.com/id=1202669527501/Chancery-Court-Confirms-Fluctuating-Interest-Rate-Is-Appropriate#ixzz3OAXd7PFf"

  • Reply to

    Parsons new opinion

    by hosaquavas Jan 7, 2015 11:54 AM
    csmclemore csmclemore Jan 7, 2015 12:16 PM Flag

    Chancery Court Confirms Fluctuating Interest Rate Is Appropriate
    byThomas E. Hanson Jr., Delaware Business Court Insider
    September 10, 2014 | 0 Comments

    In lengthy disputes where a judgment is entered as of a date several years in the past, prejudgment interest may constitute a more than trivial amount. In Levey v. Brownstone Asset Management, Consolidated C.A. No. 5714-VCL, the plaintiff, who prevailed at trial, sought to recover interest on the judgment amount at the constant rate of 10.25 percent from Jan. 26, 2006, forward. The defendants took the position that the interest rate should float, i.e., change whenever the Federal Reserve discount rate changed. The court agreed with the defendants and found that an award of a fluctuating rate of interest serves the dual purposes of compensating the judgment creditor for the loss of use of its capital during the pendency of the action and causes the disgorgement of the benefit the judgment debtor has enjoyed during the same period of time.
    Background
    In Levey, the court awarded the plaintiff damages, plus pre- and post-judgment interest at the legal rate, compounded quarterly, from Jan. 26, 2006, forward. The parties, however, could not agree on how the legal rate of interest should be applied. The plaintiff maintained that the interest rate as of Jan. 26, 2006, was 10.25 percent and that such rate should be used to calculate both pre- and post-judgment interest until the date of payment. The defendants countered that the rate of interest should fluctuate based on changes in the Federal Reserve discount rate. The court analyzed the parties' respective positions by applying the purposes underlying an award of interest.
    Analysis
    Initially, the court found that it "has broad discretion, subject to principles of fairness, in fixing the [interest] rate to be applied," citing Valeant Pharmaceuticals International v. Jerney, 921 A.2d 732, 756 (Del. Ch. 2007),

    Sentiment: Strong Buy

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