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

To: jayhawk969 who wrote (24163)	8/7/1998 10:25:00 PM
From: celeryroot.com	Read Replies (1) \| Respond to of 32384

ML is representing Allergan. you have the same situation going on with AXPH. There is an overhang because an ex director of Sequana is selling his large holdings(a few other also).

To: jayhawk969 who wrote (24163)	8/7/1998 10:47:00 PM
From: Henry Niman	Respond to of 32384

JD, The big boys frequently set a price and the MMs drop the price. AGN wanted to sell, and MMs could find buyers at 10 so they dropped the price. That chased out some retail and produced some margin calls. The first 50K block at $10 was not paired up. It was followed by a bunch of 2000 and smaller trades at the bid price. After that, there were a couple of paired sales (50K and 60K at 9 7/8 paired with two 50K buys at 9 31/32 and 10). As I said to Fugazi, its much harder for the big boys to move in and out, so MMs pair up natural sellers with natural buyers. MMS dip the price frequently to facilitate the trading of the larger blocks. Right now it looks like they are ready to rock and roll at $10. The price rise at the close may be signaling some trading at a notch higher on Monday. When MMs were distributed about 3.5 million shares in Dec 1995, the price actually rose because MMs found natural big boy buyers and after one round went at about $10 another round went at about 10 1/8. The price slowly crept higher, even though the volume was like today (between 1/2 and 1 million per day for many days). When the overhang was gone, the price took off because there were plenty of buyers but few sellers.

To: jayhawk969 who wrote (24163)	8/8/1998 8:18:00 AM
From: tonyt	Read Replies (1) \| Respond to of 32384

>This kind of action makes one wonder what is really happening. >The fundamentals of LGND have not changed. The market seems to be saying that LGND was overpriced at $16 (14, 12, ...). The funamentals did not change much when LGND went from $11 to $18 a few months ago either. You should look at this both ways. >Did someone offer to buy a large number of share but only at 10 or below? More likely someone wants to sell a large number of shares and the MM's are bringing down the ask in order to find some buyers. If they still can't find any buyers, then the MM must buy the shares. >If so why not a private sale? That would make the most sense. With mutual fund managers lightening their holdings in risky biotechs, Allergan may not be able to find a buyer do a private deal.