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

To: tonyt who wrote (24176)	8/8/1998 1:09:00 PM
From: jayhawk969	Read Replies (1) \| Respond to of 32384

tonyt, My questionDid someone offer to buy a large number of share but only at 10 or below? Your responseMore 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. My unstated assumption was that Allergan wanted to sell. If so then ML would then have told Allergan that larger quantities could be sold but that buyers for those quantities did not exist until the price reached 10. The price was then brought down rapidly on low volume(probably using Allergan shares to do so) until the target price was met. Voila! Large volume and transfer of shares via the market. We will be able to get a far more accurate read when Allergan's current activities are released publicly. Overhangs can be a bitch. My incorrect assumption was that Allergan would continue to sell but would wait out the market and sell at a higher level. I misread the tealeaves. Unless there are private sales occurring now, the remaining overhang is still large and we now suspect that Allergan will sell at these lower levels if necessary. I agree with Henry that once the overhang is removed we will get a nice rally, however, I am not as confident that the overhang effect will remove itself so quickly. If they still can't find any buyers, then the MM must buy the shares. I assume that the MM is not going to take undue risk. If one presumes a somewhat elastic market, the MM will find the right price to accommodate the sale. J.D.