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

To: sdkaye who wrote (23851)	8/3/1998 7:08:00 PM
From: Hippieslayer	Read Replies (1) \| Respond to of 32384

Lgnd has been the same company all along, it's just that it's share price was overvalued.Thank god I got out in the hi 12 low 13's. BTW, I haven't read it yet, but there is an article on the front page of sec B of today's WSJ about combinational chemistry and the fellow who pioneered it.

To: sdkaye who wrote (23851)	8/3/1998 8:53:00 PM
From: Mike McFarland	Read Replies (1) \| Respond to of 32384

Time to make a call - average down or bale out. When in doubt, do nothing. But of the two choices you give, averaging down is probably the worst. Especially if at one time you considered yourself to already have a full position. Also, there is nothing wrong with setting a mental stop for yourself, you probably should have done so by now. Happy hunting. All I know is Ligand is cheaper for me that it once was, but if I find myself down 20% weeks from now I will bail.

To: sdkaye who wrote (23851)	8/3/1998 9:36:00 PM
From: J Stone	Respond to of 32384

If the market is correcting itself and the large caps' EPS growth is stalling or about to stall, then biotechs might just be better stocks to hold. So, long as companies like Microsoft and GE are expected to post 20 - 30+ percent annual growth rates, the relative risk/reward of investing in biotechs is poor. Why go for a stock that has a 35% chance (I think I'm being generous) of being a 10 bagger in 5 years but have a downside of losing it all, when you could invest in the S&P 500 index and get close to a perceived 4 bagger (as of the past several years) over the same time period with a probable downside of just getting no appreciation at all? However, if the large caps stall and let's say they're only expected to grow their statical average growth of 10% per year, then biotechs which are essentially unaffected by economic downturns, IMHO, become much more of an attractive investment relatively speaking. If I knew how to plot the S&P 500 index against a biotech index, I might be able to prove or disprove this idea by going back about a decade. Anyway, these are just some thoughts to remind myself I'm in for the longterm.