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Biotech / Medical : VD's Model Portfolio & Discussion Thread -- Ignore unavailable to you. Want to Upgrade?

To: Peter Singleton who wrote (4665)	4/19/1998 10:53:00 PM
From: Russian Bear	Respond to of 9719

Peter, <<[A] number of times I've added to a position, ...later to sell with my tail between my legs when my perception of the fundamentals changed.>> Yep. Been there, done that. I simply write it off as "continuing education," and try to make a different mistake the next time. ;-) <<Wouldn't a prudent investor weigh the downside as well as the upside in the leverage associated with the warrant position?>> Absolutely. Greater leverage means greater risk, by definition. Using current levels as a baseline, any given percentage move by LGND (in either direction) will result in a greater percentage move in LGNDW. That is because the ratio of the prices of LGNDW to LGND is approximately 0.6, whereas the "delta" of LGNDW is substantially higher. (Sorry to use that term again, without defining it. For the belated definition, please see my next post, to Rocketman, on this subject.) Regards, RB

To: Peter Singleton who wrote (4665)	4/19/1998 11:58:00 PM
From: Dan O.	Read Replies (2) \| Respond to of 9719

Peter, just got back in. Your making a few assumptions, ie we're prudent. In my own portfolio I have stuff I don't think about (a local bank, GE, whatever) and I have my spec stuff. Ligand is the most conservative stock in my spec stuff because of the quantity and quality of their pipeline. It's a blue chip mutual fund of biotech research. Combine that with their ability to make strategic alliances and how far they have come with so many things, I'm comfortable with the risks. See Henry's new timeline chart for the progress. Also remember that they have (I think) 400 researchers on staff doing things that are not even on the chart. Is it prudent for my Grandmother? No. Me? I'm 43 with no baggage (at least financial), definitely. I'm overweighted. Monseur, one thin mint? ("The meaning of Life" M. Python) Dan Ogens