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

To: Mudcat who wrote (23524)	7/25/1998 10:02:00 PM
From: jayhawk969	Read Replies (1) \| Respond to of 32384

Mudcat, I first bought in October of 96 in the low 13's. I bought for the same reasons you did. Now your educated, so that is no reason for you to stay. What is it, are you staying or going, or are you just going to complain. Any decisions I now make regarding this stock will not be dependent on Henry(I might listen if he said bail). Today I have been comparing Ligand's pipeline, balance sheet, burn rate, and financing methods, to Isis and Sepracor(two companies that I like that are in comparable mid range stages). I am not finished, but guess what? There is no simple solution in this biotech game. Whether you borrow $197 million at 14% interest and throw in a few options or you do it Ligands way you will be open to criticism. Sepracor has gone from 14 to 58 this year. Biotechs are an investment where one takes their chances. Can you evaluate the quality of the science? If not get out. Are you willing to assess and play the odds of this being a 10 bagger or a total loss? If not get out. Biotechs are legalized gambling with many risks and opportunities. The right biotech pick is the next Cisco (1000 shares 8 splits later is over 6 million clams!) The wrong one and it is out at $.20 a share. I have major concerns, the cash reserves vs. the burn rate of this company is scary. We need revenue that does not come with dilutions. Every executive at Ligand knows this. David Robinson lost approximately $325,000 in paper on his aprox 480,000 shares of owned stock on Friday. He lost more this last week than his annual salary. His options (100,000 at average exercise of $11.25) are currently worthless. How motivated is this man to dilute the stock and diminish shareholder value? I am still here, I believe this stock is high risk, with a medium to high potential payoff. Timing of success and how it impacts further dilution will determine how well my investment in Ligand does.