Andrew,
I'm exactly in the same position as you. Highly margined and fully LGND. Any move below 13 before February, and I'll have to sell. By February, I intend to increase my position, if reasonable prices prevail.
I'm afraid you'll also lose the third bet with Henry (I guess this was the one for $30 by Aug. 98). However, this is not to say that LGND will not go up. I believe that we'll go up with a slower pace.
As I see it, the problem with LGND and biotech in general is that, as long as companies are in the R&D only stage, successful PR and a few friends in the media, does a much better job of pushing the stock than the underlying science or potential of the pipeline. And in that respect, I think LGND displays a poor performance. Which is, why I like this stock so much. I believe that it is undervalued and I also believe that the truth about LGND will emerge eventually. Bad news is, I expect this to take two to three years.
Alper |
