Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: bob zagorin who wrote (27160)	1/4/1999 10:59:00 PM
From: aknahow	Read Replies (2) \| Respond to of 32384

This type of deal sucks! I have often wondered what motivates people to make"hate" post, and I have just begun to understand why. Interest rate works out to about 29% for a year and 1/2. I will write calls when possible and if called I doubt I will go back in. Have a lot of distrust of management to overcome at this point. There are perhaps explanations as to why this makes sense but until I am convinced that management really had good reasons, I must conclude they just screwed all other shareholders.

To: bob zagorin who wrote (27160)	1/5/1999 2:36:00 AM
From: Skeeter Bug	Respond to of 32384

>>i would have exchanged my warrants for 5.50. why didn't they ask me<g> << you can exchange them for $5 5/8 on the bid tomorrow morning... to all, remember, a warrant's intrinsic value is valued at the current stock price - $7 1/8. that makes the intrinsic value of the warrants worth $1.50 ($11 1/8 - $7 1/8 = $4 ... $5.50 - $4 = $1.50). the investors traded their time value for $1.50 (using today's valuations). actually, this seems quite fair to both sides - though it kind of depends on when the deal was struck. if lgnd was $7 when the deal was made then it was a sweetheart deal for joe institution. this one is hard to analyze. however, using today's value, it seems fair...

To: bob zagorin who wrote (27160)	1/5/1999 6:26:00 AM
From: Cheryl Galt	Respond to of 32384

>> i would have exchanged my warrants for 5.50. why didn't they ask me<g> << Why would you want to do that? Didn't you just finish exchanging all your LGND for LGNDW -- so you could control twice as many shares? (Or did someone else say that?) 5 11/16 Monday's closing price for your old LGNDW + 5 08/16 the strike price ---------- 11 03/16 Your COST for your new LGND shares (not counting trading fee) By coincidence, your cost is exactly equal to Monday's closing price of LGND. Looks to me like you got an even exchange! And gave a tip to your broker. What am I missing? I thought you preferred holding warrants. Please explain. Cheryl