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: aknahow who wrote (27165)	1/4/1999 11:30:00 PM
From: Kushi Kullar	Respond to of 32384

This clearly sucks. I am not sure what Ligand is doing these days. Regards...

To: aknahow who wrote (27165)	1/5/1999 2:41:00 AM
From: Skeeter Bug	Read Replies (1) \| Respond to of 32384

george, the deal wasn't that bad. i can sell my warrants tomorrow for more than these investors received for their warrants. why did they do it? the only rational explanations are 1. they are out of money, 2. they have plans for the near future and need more dough to pull them off, 3. they are irrational. ;-) we pay management to know what they are doing. i'll reserve judgment. it is, however, kind of odd to do if they don't have a specific plan for the money.

To: aknahow who wrote (27165)	1/5/1999 9:03:00 AM
From: LLCF	Read Replies (1) \| Respond to of 32384

<Henry, you don't look better by doing something stupid. Early exercise is fine. that's up to the holder, if and when they can make a profit by doing so.> This simply doesn't make sense... no one would ever exercise early without some kind of incentive. DAK

To: aknahow who wrote (27165)	1/5/1999 11:12:00 AM
From: Henry Niman	Read Replies (1) \| Respond to of 32384

george, Finance is clearly out of my area, but I thought that the LGNDW story was fairly straightforward. LGNDW sells for more than LGND minus 7 1/8 because of the time premium. Those who exercised early, gave up that time premium, so the were given an incentive to exercise at 5 1/2 instead of 7 1/8. The 1 5/8 reduction in exercise price is very close to the time premium that investors who buy LGNDW have been paying recently. As I recall, that premium has actually been over $2 in the past.