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

To: tonyt who wrote (14386)	2/6/1998 7:25:00 PM
From: Doug Baer	Read Replies (1) \| Respond to of 32384

why not buy the 1000 shares of the warrants on margin (to reduce cost)?

To: tonyt who wrote (14386)	2/6/1998 8:10:00 PM
From: Torben Noerup Nielsen	Read Replies (1) \| Respond to of 32384

Tony, Now I really feel bad. I didn't see your analysis earlier and thus I committed the unpardonable since of buying the warrants on margin. I also forgot to sell some of the shares I was going to sell so overall, I have around 50% more than I used to have. Ooops..... Cheers, Torben

To: tonyt who wrote (14386)	2/7/1998 12:50:00 AM
From: Tommy D	Read Replies (2) \| Respond to of 32384

I have heard references to various theories in your analysis and that of bernie's. There are a variety of ways to assess the purchase and the risk. I had approx. $6000 to spend and felt Lgnd was a reasonable purchase so I bought at the open this morning for $6 1/8 for 1000 warrants. I made a greater profit(on paper) than if I had bought the shares by 50% but I also will experience a greater loss if the stock declines. A similar analysis exists with respect to options or leaps. In general terms, if you intend to hold the stock and exercise the option to purchase, the warrants may not be attractive but from a leverage point to view, if you believe in the stock and are not risk aversive, the warrants are the place to be. On the basis of a return to the stock price equivalent to the fall values(ie. $18) within the next 3 to 6 months, I personally like the warrants for leverage but also understand the risk if I have to trade them in the event of a market dip. Good Luck to both you and Bernie. TommyD