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Biotech / Medical : Ligand (LGND) Breakout! -- Ignore unavailable to you. Want to Upgrade?

To: Cheryl Galt who wrote (29445)	11/20/1999 2:09:00 PM
From: WTDEC	Read Replies (1) \| Respond to of 32384

<<Well, at least Robinson, Maier, and Respess (especially Robinson) are putting their money where there mouth is. The SEC report says they intend to tender their 70,376 Warrants.>> Cheryl, I think the fact that the insiders are tendering all their warrants is probably wildly bullish. Whether it is or not will depend on what they do with their common stock. The premium being offered to warrant holders to tender early is about 30% on an annualized basis. So our senior guys will get that when they tender and get the stock in return. They will be able to compound those gains by holding the stock assuming it appreciates between now and June. Under this scenario, Robinson and crew goose their returns...the smart thing...and we all know they have the benefit of being insiders. Historically, LGND management has been a buyer, not a seller of shares, so I think that they will hold the stock. In order to actually realize the 30% premium they would need to sell the stock and that would be very bad news. It would indicate that these insiders might have used the tender to grab a 30% premium now while they still could, thus suggesting a bearish future. If the stock then trades below the 7.12 strike price in June, the options would have then been worthless and our management would look like thieves for grabbing the premium here in Dec. 99. Stockholder suits would then be likely. My view is Robinson is smart, and I expect management will hold the stock despite the opportunity to lock in the 30% premium in the near term. Best regards, Walter