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Biotech / Medical : Ligand (LGND) Breakout!
LGND 206.84+3.8%Nov 24 3:59 PM EST

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To: Torben Noerup Nielsen who wrote (14236)2/5/1998 12:55:00 AM
From: CYBERKEN  Read Replies (1) of 32384
 
We should perhaps take the example out a little further:

Lets assume that one has $1000 to invest in Ligand, and chooses warrants over stock. We'll also assume that on June 3, 2000 LGND is $50, and the differential is the conversion price of $7.125 (no premium at all). The return on $1000 at that point is:

LGNDW $6.00 to 42.875=614% $6140

LGND $11.0325 to 50=353% $3530

The additional 261% might be well worth the risk. Whether one prefers to invest on margin is an unrelated personal decision, but the risk is definitely increased.

Some of us just like to live on the edge.(:->)
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