Ligand (LGND) Breakout! Message Board

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Biotech / Medical : Ligand (LGND) Breakout!

LGND 199.20

+0.1%

Nov 21 3:59 PM EST

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To: tonyt who wrote (14153)	2/3/1998 10:12:00 PM
From: Flagrante Delictu	Read Replies (3) of 32384

tonyt,>> any idea why the warrants closed down 20% while the underlying security closed up?<< A review of the warrant trading on Bloomberg shows the following: TIMES & TRADES 15:57 4@ 5.56 3@ 5,625 5@ 5.50 15:58 5@ 5.375 15:59 5@ 5.25 5@ 5.25 5@5.00 5@ 5.00 16:00 50@ 5.06 16:03 1125@ 5.00 16:23 50 @ 5.125 A seller had a block to sell of the illiquid LGNDW. The market had just closed. The public had no access to this information. The market makers took the block from the seller at a discount below its' worth to allow for the risk they took on such a large piece when the market in the common was already closed & they presumably couldn't hedge it off by selling the stock against it until tomorrow. Of course, in reality, the market makers knew about the existence of the block before the close & probably hedged it by shorting the stock before the close, while hiding the trade in the warrants until after the close to eliminate a competing better bid such as the one we would have provided had we known of the opportunity. Bernie.

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