J.O.; I think you missed an interesting exchange on the thread a few weeks ago on the subject of dilution. By quoting Richard Harmon as follows, I got the discussion rolling and drew RH into it.
<LGND doesn't react to positive news because veteran biotech investors know that Robinson funds the company and expands the breadth of research at the expense of his shareholders. I sold at $17 two years ago, correctly predicting that dilution was coming (but never picturing how out of hand it would get).<
RH then respoded to Henry's touting of the progress LGND has made as follows;
<Agreed, wholeheartedly. However, the shareholder has been footing the bill, not making a dime. Every time you answer my point, you merely do one thing..... agree with me that you have loaned Robinson your money for 0% per year. You may do very well, relatively near-term. If so, the individual that joins you today will have done much better.
Always in the context of respect for the information you provide, Henry.
Andreas.... your rationale is the same. You are content to loan Robinson your money to build a business with. The early projects, now including the Seragen mystery, address small markets. It is therefore possible that Robinson will continue to stick it to you. If he does, how smart are you going to feel in a couple of years?<
Until the rate of "progress" begins to exceed the rate of dilution LGND may continue to be dead money for existing shareholders. |
