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

To: Flagrante Delictu who wrote (14331)	2/6/1998 12:49:00 AM
From: WTDEC	Read Replies (1) \| Respond to of 32384

Bernie, tonyt et. al. -- I was out tonight celebrating LGND's strong report, so I have not been able to add my observations to the huge debate on LGND versus LGNDW. Later this AM I will do so. For now, let me say that using margin raises the volatility of the investment since it magnifies the return (gain or loss). Thus, the volatility of a stock investment purchased on margin can equal or exceed the volatility of the warrant. I believe valuation models, such as Black-Scholes, need to be adjusted when the underlying security is margined and one is comparing the two alternatives I set out in my original post. I'll elaborate later. In any case, I hope the LGND vs. LGNDW issue is overshadowed tomorrow by joyous commentary on the thread as LGND and LGNDW move smartly upward.