September 15th, 2007, 02:52 AM
The SCO Beast Is Dead?
Well, it's finally happened.
SCO, that well known hi-tech outfit with loads of patent assets, has filed for chapter 11.
Friday trading saw the stock hit $0.37, a fall of $0.28 (43%)
Sentiment: Strong Sell (if you can find anyone mug enough to buy)
September 15th, 2007, 03:17 AM
September 15th, 2007, 03:49 AM
There's still some mileage in it I feel.
When trading started Friday morning, someone dumped 70,500 stock and the price only really fell in the afternoon.
I wonder what an SEC investigation will make of that?
Sentiment: Strong Fraud
September 15th, 2007, 11:09 AM
Could be fraud but given their present woes, I think there are more serious issues ahead of them. I've often wonder if they did full due diligence in regards to the lawsuit.
It will be interesting to see how this plays out when business is back on Monday. I wonder what the remaining shareholders will think of all this.
September 15th, 2007, 12:24 PM
Yes, there are certainly two levels here, the individual and the corporate ones.
As I see it, dumping 70,500 units would have brought in $46,000 and avoided a loss of around $20,000 at closing prices. Big money for an individual but not a corporate stockholder. That looks very much like "insider trading" by an individual to me?
As you righly mention, was there due diligence in respect of the legal cases?
Finally, how have they been accounting for all this? Trading whilst insolvent makes all the "officers" of the company jointly and severally liable with their personal assets at stake (not to mention the criminal angle). I think that SCO's assets valuations and liability provisions will undergo close scrutiny
I am glad I am not a partner in Tanner's (their current auditors). KPMG resigned in May 2005 and had commented:
As for the existing stockholders? well, SCO have been "thrashing" for some time now, so I guess a lot of them are just day trader shills and "dead cat bounce" merchants. I don't think there will be too much noise from them as they are gamblers rather than investors.
KPMG reported in a letter to the Company's Audit Committee dated May 17, 2005 that during its audit of the Company's financial statements for the fiscal year ended October 31, 2004, it noted a material weakness in internal controls related to the accounting for capital stock and stock option transactions.
I would expect the trouble to come from disgruntled ex-employees with stock?
September 16th, 2007, 01:12 AM
Ahhh SCO is finally in the toilet
It was only a matter of when, and now the stock price as plunged below $.40. I guess Darl's strategy did not work very well.
Best of luck with that one, because it will be difficult to maintain a good spin on things when the stock is traded on the pink sheets.
With its cash reserves running out, the SCO Group Inc. has filed for bankruptcy protection.
The Lindon, Utah, company made the announcement in a news release, issued Friday afternoon. "The Board of Directors of The SCO Group unanimously determined that Chapter 11 reorganization is in the best long-term interest of SCO and its subsidiaries, as well as its customers, shareholders, and employees," the statement said.
SCO expects to "maintain all normal business operations throughout the bankruptcy proceedings."
September 16th, 2007, 09:16 AM
September 16th, 2007, 11:19 AM
September 16th, 2007, 12:38 PM
OK so let's look a little closer?
Assets ............... $14,800,000
Liabilities ............ $7,500,000
Issued capital (stock) 21,782,164
With a closing price of $0.37 that would give a market capitalisation of $8,059,400. That is remarkably close to the net assets figure?
And who owns SCO?
Cede & Co. a.k.a. The Depository Trust Company???????????????
They are the clearing house for stock transactions, so that means that 14,286,457 shares are in transit between buyers and sellers. That's 66% and a controlling interest.
It will be interesting to see what shakes out of that heap?
September 16th, 2007, 02:36 PM
Lol you know at this price a member here could probably afford to buy most of their stock
Oh if I win the Lotto some day I'll just buy it outright. Then I'd fire the lawyers for being stupid enough to sign on, and then I'd fire everyone in management, then I'd take the source, upload it to an FTP and give the addy out on a mailing list.
Oh how that would piss off some people. Actually I'd upload it to kernel.ftp lol, THAT would be funny.
Now that I think about it, I'd actually just buy a domain like "Hahahahahahahahahaha.com" and upload it there for download, sell some add space (I'm pretty sure I'd get some major companies wanting some add space on a site where the source for SCO Unix was going to be for public download as everyone would go to it just to see if it was true) and make money
Last edited by gore; September 16th, 2007 at 02:39 PM.
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