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

To: Phil Cressman who wrote (22374)	6/17/1998 11:34:00 AM
From: tonyt	Read Replies (1) \| Respond to of 32384

Be careful, you're very close to becoming a 'naysayer' :-)

To: Phil Cressman who wrote (22374)	6/17/1998 5:33:00 PM
From: Andreas Helke	Respond to of 32384

I am sure that the projection of $14.55 EPS in 2006 is wrong. But it can be wrong in two ways. Either it is too high or too low. I don't think any investor will complain if it turns out that the earnings will be even higher. But even a fraction of this earnings number will turn Ligand into a decent investment. If we take a PE of 25 than the $14.55 correspond to a stock price of $364. To get from $14 to $364 in 8 years you need a yearly price appreciation of 50%. This would be a rally that rivals Microsofts stock performance over the last 8 years. If it turns out that Ligand only earns 1/5 of the projection the price will still go up 20%/year easily beating the S&P500 for the next 8 years. Even with 1/10 of the projected earnings we will have a yearly Ligand price rise of 10% easily beating cash and still a reasonable chance to beat the S&P 500. Andreas