Sell Stock of the Month: Ligand Pharmaceuticals Incorporated (LGND)

Written by Donnie Nguyen

January 6, 2020


I often review my stock portfolio to make sure that I’m following my #1 rule: Invest in What You Know and Like on each long-term holding.

As I stop at Ligand Pharmaceuticals Incorporated (NASDAQ: LGND), I realize that I don’t really know that much about this company and its products. I’ve never used it and I don’t know anyone personally who has.

I originally picked LGND for the Stock of the Month because of its incredible sales and earnings growth. I loved the story. I saw LGND’s strategy of focusing on early-stage clinical trials as unique. I liked that they were growing their partnerships. Their main product, Captisol, appeared to be a solid moneymaker.


Soon after I added LGND, the sales and earnings went south. In its most recent 10q statement, year-over-year total revenues plummetted 73.0% and diluted net income per share went from positive to negative in the 3 months ending September 30, 2019.

As I see the stock fall further and further, I have no idea if it’s going through a temporary rough patch or if more pain and suffering will arrive in the form of more price drops.

That’s the problem with breaking my #1 rule: Invest in What You Know and Like.

Today I’m officially closing out Ligand Pharmaceuticals as a Stock of the Month with a loss.


Stats (as of 1/6/2020)

  • Pick Price: $135.84
  • Closing Price: $101.34
  • Performance: -25.40%


I/we do not own any shares of stocks discussed in this article.

Except for Wolves of Investing, I/we are not receiving any compensation from and do not have any business dealings with any companies discussed in this article.

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Donnie Nguyen

Donnie Nguyen

Donnie Nguyen is the founder and CEO of Wolves of Investing. He started investing in the stock market in the early 2000s. He follows the teachings of Peter Lynch, Warren Buffett, and other investing legends. When he's not investing or blogging, he loves spending time with his family traveling and experiencing the world.

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