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

To: Flagrante Delictu who wrote (14303)	2/5/1998 5:34:00 PM
From: B.D.	Read Replies (2) \| Respond to of 32384

Sorry to interrupt on the ongoing debate, but, I thought LGND'ers would like to take a "gander" at this: biz.yahoo.com

To: Flagrante Delictu who wrote (14303)	2/5/1998 6:16:00 PM
From: tonyt	Read Replies (1) \| Respond to of 32384

What can I say? Some folks think the rate charged by Visa and Master Card are reasonable -- You obviously feel that paying 14% to finance the purchase of LGND is reasonable. You're not alone, otherwise the LGNDW premium wouldn't be so high. PT B. said it best.

To: Flagrante Delictu who wrote (14303)	2/6/1998 7:06:00 PM
From: tonyt	Read Replies (3) \| Respond to of 32384

Bernie, it's only been one day, and already a purchaser of the stock is almost $875 ahead of the warrant holder. The only reason why I've taken the time to update yesterdays analysis is on the off-chance that a reader of this thread may have actually been confused by your ranting and raving yesterday. Clearly the correct choice is to finance the purchase by use of margin, not warrants. --Tony Stock Warrant ======= ====== Holding 1,000 1,000 ------- ------ Value at 2/6/98 (bid) $12,875 $6,750 Purchase price (see below) $ 5,625 $6,000 Less Margin Loan $ 5,625 n/a Less Margin Interest 1 n/a ------- ------ Profit $ 1,624 $ 750 ======= ====== ---------------------------------------------------------------- Objective: Control 1,000 shs of Ligand Stock Warrant ($11.25) ($6.00) -------- --------- Cash Paid (Stock pur on margin) 5,625.00 6,000.00 Margin Interest (use 8%) 1,150.00 n/a Cash earned on excess funds(5%) 75.00 n/a Exercise of warrant 7,125.00 Margin Loan 5,625.00 n/a --------- --------- Total cost 12,475.00 13,125.00 ========= ========= Conclusion: Additional finace cost of warrant: $650.00 Smart Move: Buy LGND