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: Mudcat who wrote (27233)	1/6/1999 12:53:00 PM
From: aknahow	Read Replies (2) \| Respond to of 32384

You are correct, and you don't need me or anyone to confirm this. Wondered why some thought, think, selling more shares at $5.5 is not dilution. Did not bother to post, my thoughts. I am not yet convinced I fully understand all the implications of the deal with ELAN. What will it really cost LGND to develop the morphine drug? When the deal was made LGND was in the weaker position. I think it had to agree to terms that were not in its' favor to get the cash it needed. This is not something evil. One makes the best deal one can in these circumstances and puts the best light on it. My point is, only that I expect that when I do fully understand the deal I will not be that happy. The deal with the favored warrant holders for me is just a flashing red light. Just as the S.E.C. checked into ELAN's aggressive accounting practices, I would not be totally surprised to see them eventually question LGND.

To: Mudcat who wrote (27233)	1/6/1999 12:59:00 PM
From: bob zagorin	Read Replies (1) \| Respond to of 32384

mudcat, i think bob made a more than sincere effort to offer you an olive branch and move on. you continue to get personal with your comments and i say you need to learn something about manners. btw, although bob was tecnically wrong about the cash showing up on the I&E, he really is right in the larger sens as that is part of the quarterly earnings report.

To: Mudcat who wrote (27233)	1/6/1999 1:00:00 PM
From: Exacctnt	Read Replies (1) \| Respond to of 32384

Mudcat, I believe that the warrants as well as outstanding employee stock options are already included in the number of shares used in the diluted earnings per share calculation. Therefore, no extra dilution when the warrants are exercised. Regards, Bob

To: Mudcat who wrote (27233)	1/6/1999 3:00:00 PM
From: Roland Batson	Read Replies (1) \| Respond to of 32384

You asked for McCamant's original LGND projection? Well Murphy who just might sleep with McCamant, on 2/28/97 as LGND sat at 12.125, had a 97-99 Target of $100. He's got less that a year to go, unless like LGND he just keep pushing this out. Thanks for continuing to contribute balance to this thread. Back to lurk mode, Roland

To: Mudcat who wrote (27233)	1/6/1999 3:36:00 PM
From: Henry Niman	Read Replies (1) \| Respond to of 32384

<<I also have a question for others on the thread. When LGND redeemed the warrants from some investors, where did the shares of LGND common stock come from? Was the number of shares outstanding increased or did LGND set aside these shares at the time the warrants were issued. Bottom line did we see more dilution in the stock by LGND redeeming these shares?>> Finance isn't my area, but aren't we now talking Investing 101??? I think that LGND set aside the 6.5 million shares. When they issued the 3.25 million shares of ALRIZ on June 3, 1995, they told the printer that by June 3, 2000 they would probably be asking for them to print up the additional 6.5 million shares. Anyone that has done any due diligence would know that ALRIZ consisted of 1 ALRI and 2 LGNDW which meant that if the LGNDW was exercised by June 3, 2000, there would be an additional 6.5 million shares of LGND outstanding. Earnings projections that go past June 2000, take into account the extra 6.5 million shares. Is it dilution, in the sense that by then there will be more shares of LGND - yes. Is this a known and quite quantifiable entity to anyone paying attention - yes. Should this be an issue at this time - no.