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

To: Peter Singleton who wrote (19589)	4/25/1998 1:27:00 PM
From: Phil Cressman	Respond to of 32384

Interesting summary of how to value Biopharma's on TM Bioscience thread, on Silicone Investor. This small Canadian company will be a supplier of information and technology to companies like Ligand. I just received their annual statement and 2/3'd of it gives a detailed but understandable overview of DNA/GENOMICS etc.. If you follow BioScience it's well worth getting a copy just for the information contained. As an investment it could be worth a look at, it's certainly junior but looks cheap and has been rising in value unlike Ligand.

To: Peter Singleton who wrote (19589)	4/25/1998 5:06:00 PM
From: Flagrante Delictu	Respond to of 32384

Peter, Thanks for your post. With regard to LGND, or any stock, for that matter, circumstances can change sufficiently to warrant investors to reconsider their assumptions so as to effectuate additions to or subtractions from prior positions. The beauty of the warrants vs. the stock, when purchased for $6.125 lower than one could have bought the stock, at the time of the discussion of which was the preferable purchase, was that the warrants (if compared share for share with the stock) should lose a lower dollar amount in declines & rise an equal dollar amount in rallies because once the stock were to decline below $7.125, the warrants could no longer lose intrinsic value, as there would only be time value remaining at that point, assuming an interest cost value saved of $1.00 between now & expiration on the $6.125 saved via the purchase of the warrants instead of the stock. You had a situation where for a substantially lower cost of entry, you could lose less and certainly no more, while retaining full participation on the upside in terms of dollars & cents earned per share. You effectively bought the equivalent for less down & with a lesser risk of loss of money.