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

To: Doug Baer who wrote (14388)	2/6/1998 7:45:00 PM
From: tonyt	Respond to of 32384

The example I posted had an almost identical cash outlay ($5,625 for LGND, $6,000 for LGNDW -- i.e. with $6k to invest in Ligand should I buy LGND (on margin) or LGNDW?) and each choice controlled 1,000 shares of Ligand. If the 1k warrants were bought on margin as you suggest, then the example would have to take into consideration the magin cost for the warrants vs the interest earned on the excess cash. As margin costs will be greater than interest earned, using margin to purchase the warrants will only increase the cost of the warrants.