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

To: Henry Niman who wrote (13458)	1/18/1998 12:38:00 PM
From: j g cordes	Read Replies (2) \| Respond to of 32384

Henry, I'm a technician more than a fundamentalist in stock selection.. looking at LGND over the last two years, its at or near the bottom of a horizontal trading range between approx 11 and 17. Currently momentum, rsi, and stochastics are at their nadirs with a small hint of a turn coming from the momentum occilator. I see unusual volume spikes, without seeing the trading sheets, I can't tell if its buying or selling. Over the last two years late February/March has been a low cycle on price (perhaps a good time to begin buying with the idea of selling at the channel highs). The stock seems to have a tradeable rythem. Reading some of your posts it appears you are looking at LGND to show better sales a year or better out in time as "... begin prescribing it off label next year." Is this your time horizon for seeing an investment in this stock pay off? thanks. Jim

To: Henry Niman who wrote (13458)	1/18/1998 11:04:00 PM
From: JOEBT1	Read Replies (1) \| Respond to of 32384

Henry, I just got back from vacation and caught up on all the posts. I may be missing something but I don't see why anyone including Farallon would convert warrants to common stock since they would lose the 1 1/2 to 2 point premium in the price of the warrant. More likely Farallon is shorting LGND to capture (lock in) the premium. If they short LGND shares equal to the number of warrants they hold they will have a "null" position in LGND and will lock in warrant premium profits. They will hold the short and long position until the warrants expire or when the warrant premium is small and then convert warrants and deliver the shorted stock.