These two downgrades.... by Cantor a couple weeks ago, and The Street yesterday.... seem pretty questionable to me. Looks like shares are being dredged up. I sort of view it as bullish in the long run.
I missed the cantor downgrade, and really don't give two craps what "The Street" says. Still holding all the shares and calls I bought on the dip to the $19s and plan on holding the shares through end of 2013 at least. I think 2nd half of this year will be huge for LGND with the melphalan data and several other catalysts.
Your worried about "downgrade" on "The Street"? Please.
I'd rather watch insider buying. At the end of last year, Knott did a bit of selling, but our read was this was some EOY tax loss harvesting. BVF has been adding. But what I am really watching for is Form 4 or 13F by Jason Aryeh and his JALAA equities. He made a big buy into $MYRX (partially by selling in the money puts in 2011), eventually adding and getting a board seat. But after closing R&D and a NASDAQ delist, they just pushed a massive return of capital, so our read is he just came into a fist full of cash. While his group avoids 13Fs, and so it is a challange tracking his actions, we would not be surpised to see him put some of this cash to work at $LGND. As a board member, such would compel him to file a Form 4. Of course he might just do sure again via selling a pile of in the money puts which will allow him to delay reporting such till they become shares.
With interest rates low, and the income streams rising, $LGND makes an interesting LBO target for activiest like Jason.