Ligand (LGND) Breakout! Message Board

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Biotech / Medical : Ligand (LGND) Breakout!

LGND 192.29

-0.4%

3:59 PM EST

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To: celeryroot.com who wrote (13393)	1/15/1998 6:06:00 PM
From: Henry Niman	Read Replies (2) of 32384

Celeryroot, My take is that Farallon has 1.7 LGND shorted and 3.4 million LGNDW (at least that's what they had in early December). They would exercise 1.7 LGNDW to cover, but they would exercise most of the remaining LGNDW to sell as LGND (since it would be hard to sell that much LGNDW). Thus, most of their profit will come from LGND sales (and a minor amount of LGNDW sales). However, I think that the lion's share of those sales happened today, and the overhang is just about gone. Thus my prediction is that LGND will get over $24 million for the 3.4 million LGNDW exercised, Farallon will make about $20 million on the arbitrage play, and LGND price will return to a fair value (which Bear Stearns says is now about $18).

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