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

To: Russian Bear who wrote (19571)	4/24/1998 11:45:00 PM
From: Flagrante Delictu	Respond to of 32384

R.B. OFF TOPIC There is no question that you understood the advantage of positioning in LGND via the warrants. Moreover, I have no quarrel with holding most of , if not all of, one's position in the company via ownership of the warrants. That's a matter of personal choice. Where we differ is in our different opinions on whether it is true that, "Greater leverage means greater risk, by definition." It can or it can't depending on the facts of each situation, as they relate to things like price differentials & the terms of the relationship between different instruments, such as LGND & LGNDW, IMO. We can agree to disagree on this & still root for the hoped for emergence into the financial spotlight of both LGND & LGNDW.

To: Russian Bear who wrote (19571)	4/25/1998 10:45:00 AM
From: Flagrante Delictu	Read Replies (3) \| Respond to of 32384

R.B. OFF TOPIC In order to be fair to your point of view & to possibly find the reason why we, who normally don't seem to disagree on financial matters, do disagree on this one, I note that in the article in Bloomberg Magazine that I posted to Tony, the author says "Volatility is risk." Upon contemplation of that, I believe it is possible that our definitions of "risk" might be different, with yours & his being broader than mine. Specifically, when I consider "risk", my principal concern is whether I can lose more money from transaction A or transaction B. So, I am contemplating "risk" to be risk of capital loss between the 2 choices we were discussing. I noticed you were talking about percentage risk (Using current levels as a baseline, any given percentage move by LGND {in either direction} will result in a greater percentage move in LGNDW) & he, about volatility risk. As long as the transaction I am contemplating can make as many dollars & cannot lose more actual dollars than the alternate choice( & may lose a lot less, & requires a smaller out of pocket outlay, as in LGNDW vs. LGND), I am personally not overly concerned with other concepts of risk, which could include concepts as broad as emotional or psychological risk as well as percentage risk & volatility risk. Perhaps this is the missing link to the puzzle of our differing interpretations of "risk".