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Biotech / Medical : VD's Model Portfolio & Discussion Thread

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To: Flagrante Delictu who wrote (4675)4/20/1998 10:32:00 AM
From: Vector1  Read Replies (1) of 9719
 
Bernie, I understand the numbers. Apart from minor differences in pricing the difference in our analysis is that you are comparing the risk of an equal number of shares and warants and I am comparing the same dollars spent buying warrants vs. stock. Since we are considering allocating a certain amount of dollars to LGND that is the way I look at it.. No question the warrants provide better upside if the stock appreciates during the warrant period and of course if the stock goes to 0 you get wiped out either way.
In any event we are likely to move into the warrants. It allows us to put more leverage into the investment and I like LGNDs chances of making a major move before the expiration date.
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