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

To: Torben Noerup Nielsen who wrote (14236)	2/4/1998 5:25:00 PM
From: WTDEC	Respond to of 32384

Agree with you that personal considerations play a role in LGNDW vs. LGND decisions. Hope the good folks at Lake Ligand consider the implied cost of the premium and the Farallon situation in their decision making. For example, another way to use the $531 saved by buying 100 LGNDW rather than 100 LGND, is obviously buying more LGNDW. Of course, you can buy even more if the premium is very small. The gain on the additional LGNDW (hopefully!!) would dwarf even a large premium. Regards to all.

To: Torben Noerup Nielsen who wrote (14236)	2/4/1998 5:45:00 PM
From: Flagrante Delictu	Read Replies (1) \| Respond to of 32384

Torben, Nice to hear from you again. A while ago I posted that for anyone worried about a margin call, a potential solution was to exchange the stock for the warrant on a one for one basis. I believe the post was addressed to Russian Bear. That post mentioned that one could free up the extra $500 or more , while maintaining one's position in the stock. I, therefore, can do nothing but applaud your move. However, something that I had not considered then, has raised its' ugly head {no Lewinsky jokes, please}: namely, the possibility of margin calls should the warrants break 5 or 4 or whatever number the individual brokerage firm refuses to allow the security to fall below before it demands a cash infusion. In fact, the wise guys may even decide to shoot for these levels to attempt to cause a waterfall of options to come tumbling into their "offensive hands". I say this not to frighten anyone but to make them aware that they ought to know what their own firm's limits are. Also, I find it hard to believe the stock will fall enough to permit this. But anything is possible over a short timeframe. Bernie.

To: Torben Noerup Nielsen who wrote (14236)	2/5/1998 12:55:00 AM
From: CYBERKEN	Read Replies (1) \| Respond to of 32384

We should perhaps take the example out a little further: Lets assume that one has $1000 to invest in Ligand, and chooses warrants over stock. We'll also assume that on June 3, 2000 LGND is $50, and the differential is the conversion price of $7.125 (no premium at all). The return on $1000 at that point is: LGNDW $6.00 to 42.875=614% $6140 LGND $11.0325 to 50=353% $3530 The additional 261% might be well worth the risk. Whether one prefers to invest on margin is an unrelated personal decision, but the risk is definitely increased. Some of us just like to live on the edge.(:->)