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

To: WTDEC who wrote (19573)	4/24/1998 11:17:00 PM
From: Flagrante Delictu	Read Replies (3) \| Respond to of 32384

WTDEC, OFF TOPIC Re: Farallon. Without knowing for certain, I suspect that they have a short position in LGND stock of approximately 20% of their total long position in the warrants. If I am correct, that would mean a short position of around 380,000 shares of LGND, Leaving them net long a little over 1,550,000 of Ligand's shares via that many net unhedged long warrants. They also seem to believe that at the right differential, the warrants are preferable to the stock.

To: WTDEC who wrote (19573)	4/25/1998 1:09:00 AM
From: John O'Neill	Read Replies (1) \| Respond to of 32384

regarding tonyt's "firepower" he's never actually implied his actual position..though I agree that, aside from his postings, 2 mil shares short appears high. That would be about $28 mil. We should ask him directly how much of that he has. Remember Bill Gates could make over 1.8 million separate investments of $28 million each and still have plenty on money left over, so it's all relative. JO

To: WTDEC who wrote (19573)	4/25/1998 10:58:00 AM
From: Andreas Helke	Read Replies (1) \| Respond to of 32384

As a long term investment being short the shares and long the warrants does not make any sense. You loose time premium and don't profit from price movements. Such a position would only make sense to avoid the huge spread and low liquidity of the warrants for short term trading. I don't think that Farallon is interested in any of those alternatives. I think that they are either waiting for a big institutional buyer that would buy the warrants from them or otherwise consider the Ligand Warrants as a good enough long term investment to hold them until they expire even if biotech investing is not the main business of Farallon. It is of course possible that Farallon still has a Ligand short position as a result of the original arbitrage play. They can't change their position as easily as a small investor because big buying or selling would move the price in unfavorable directions. Andreas