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

To: Spekulatius who wrote (24589)	8/17/1998 7:19:00 AM
From: Henry Niman	Read Replies (1) \| Respond to of 32384

Ralf, When you put up your initial "analysis" in June, it was incorrect: techstocks.com LGND went public in 1992. You took the last few years and compared it companies which went public at about the same time, but for them you used a six year time frame and for LGND you used three years. Such analysis was flawed when you put up the post, and now you are referencing it without corrections.

To: Spekulatius who wrote (24589)	8/17/1998 8:49:00 AM
From: jayhawk969	Read Replies (1) \| Respond to of 32384

Ralf, The dilution for Ligand has been running at an rate of about 34% (growth in shares p.a.),one of the highest values in the industry. Thanks for the info, A quick fv calculation shows that this would produce 397,000,000 shares in 2006. Last year BARS predicted earnings of 14.60 per 1997 share in the year 2006. However if dilution continues at its present rate, this would mean that the earnings per share would be $1.42 adjusted. Not nearly as appealing as $14.60 per share. Richard Harmon is ringing in my ears. One cannot continue to ignore dilution and make a valid business investment case going forward. Ligand will have a very difficult time developing the entire pipeline. The critical issue I see is that $ must be spent well in advance of revenue and this means dilution well in advance of revenue. The science case is well documented. The shareholder value case is not. J.D.

To: Spekulatius who wrote (24589)	8/17/1998 9:08:00 AM
From: Harold Engstrom	Read Replies (2) \| Respond to of 32384

Does Ligand have a problem with focus? The best companies plan and execute their plans. Ligand still needs to show it can bring a product to market successfully (Ontak doesn't count because it was just purchased instead of developed by Ligand). The continual dilution would seem to point to a company that continually underestimates what is required to bring a product to market (or perhaps is indicative of a company that is too inefficient). What is everyone's take on the reasons for constant dilution?