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

To: Exacctnt who wrote (27156)	1/4/1999 7:55:00 PM
From: Machaon	Read Replies (1) \| Respond to of 32384

<< The question to be answered, is Ligand desperate for cash? >> Robinson said, in today's press release, that the funds could be used to "pursue product acquisitions during 1999". This puzzles me!? They've got close to 40 products in the pipeline, and very little news coming out of that pipeline. Their Targretin Diabetes Phase II trial in Europe will be two years old this March of 1999. I don't know if "little" news from the pipeline is good or bad news at this time? Regards Bob, Bob

To: Exacctnt who wrote (27156)	1/5/1999 8:58:00 AM
From: LLCF	Respond to of 32384

<" The cost of money incentive appears to be the difference between $7.12 and $5.51 or around $1.61 per share. Seems to me to be very generous deal for those institutions.> This is correct except the institutions are giving away the "put" by exercising... so part of the 1.61 would be the value of the 7.12 strike priced "put option"... that could easily be worth close to $1... so although I'm sure the "implied" interest rate the company paid to get the cash now was high... I doubt that it implies "panick" levels. I'll figure out the implied rate later. DAK