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

To: lavalamp who wrote (9968)	10/22/1997 2:36:00 PM
From: tdinovo	Read Replies (2) \| Respond to of 32384

Ex-dog (or is it Dog-ex), An interesting observation that might stimulate discussion on the thread a little bit. The LLY-LGND announcement dryly noted that the price premium paid by Lilly was defined based on "the market average on 20 days trading ending September 12..." I wanted to check my (often faulty) recollection, so I checked my trade data during that period. Sure enough, the 5-day period ending September 12th was the one where everyone was trying to figure out why the stock was trading within a 1/8 range during the whole period. At the time, I speculated the source was AHP. The later announcement of their problems with Redux made me think I was right, and they were shorting to offset their long portfolio of Ligand. Based on the announcement, it now appears equally likely it was Lilly (or their friends) controlling the price they would pay. Of course, the obvious question (raised at the time by someone on the thread at the time I was speculating it was AHP) is how they could short the stock without violating insider trading laws. If someone on the thread has experience in security law, it would be interesting to hear just what is and isn't prohibitted in such transactions. Ted