Has Saba Software, Inc. (OTCMKTS:SABA)’s Upward Run Come To An End

After trading above $13 per share during the first half of December the stock of Saba Software, Inc. (OTCMKTS:SABA, SABA message board) plummeted 35% in the middle of the month as news that the company will not be able to meet the deadline set by the SEC for filing its 10-K report that is February 15, 2015.

Since then the company stock has been struggling and reached prices of below $7 per share after another serious slip earlier this month. Most recently, however, SABA seems to be making a recovery due to the optimistic press releases that the company is issuing.

On January 20 the company announced that they have received “multiple non-binding indications of interest regarding a potential acquisition of the Company”. More so, the indications provide a purchase price per share that is above the current one. This excited investors and SABA jumped 22.22% in value to close at $8.25 and record a $4 million daily dollar volume.

More optimism sprouted from the other announcement during the day concerning the use of Saba Cloud for the management of the learning needs of Clyde & Co, a global law firm. On January 21 SABA announced the keynote speakers for their @Work 2015 annual conference, but that didn’t bring the results of the previous day and the ticker climbed only 4.24% in value. Still, the volume was high and the 997 shares that changed their owners as SABA was heading for a $8.60 close generated $8.49 million in trade value.

Unfortunately, the bad situation that the company is in regarding their reports isn’t going away anytime soon. As you might probably know, the company and two of its former executives were charged with accounting fraud by the SEC back in September, 2014. Robbins Arroyo LLP is now investigating SABA and certain officers and directors and is eager to provide legal options to shareholders that might think they were victims of fraud.

This was announced after yesterday’s session which ended with absolutely no movement in SABA’s price. It appears that these news aren’t enough to diminish investor confidence as the ticker is not only holding its price, but has gained a small 0.58% since today’s market open. There is, however, still a long time until the session closes.

In any case, there are just too many red flags about SABA to ignore, so doing your due diligence and weighing out the risks is crucial.