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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) :eek:
ROFL!! That's hilarious!
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 :D
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.
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 :lildevil:
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.Quote:
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?;)
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.
http://www.pcworld.com/article/id,13...s/article.html
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.Quote:
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."
Hi Donkey Punch,
I have merged your thread as it duplicates the subject matter of mine.
The article you link to was published at 16.00 BST. My thread was posted at 02.52 BST.
Yes folks............. you read it first on AO! :lildevil:
:jack:
"ambulance chasing"?..................moi? ........................
Hey, forget the pink slips............ maybe my SCO and Novell 5.25" floppies and manuals have suddenly achieved "collectors value" :D
If anyone is curious about my attitude..........SCO (the original!!!) was my first introduction to Unix.
http://www.groklaw.net/article.php?s...70914152904577
Some more information. :)
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? :cool:
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.
EDIT:
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 :)
Forget it gore,
When the ships leave the drowning rat, you just know that the cruise is over.
Latest news: SCO have asked the Court to let it hire temporary beancounters as half of its Finance Department have either quit or been fired:
http://www.groklaw.net/article.php?s...70917072753835
When I was looking through the stockholders listings I noticed several with just one share........... obviously intended to be framed and hung on the wall?
:lildevil:
Looks like the share price tumbled to $.16. Not a very good sign. :D
Hmmm,
The SEC have to step in................. but I guess they have a majority of linux fanboys so they will leave it until Friday?
How to make money out of it?................ let it fester a bit then see if you can buy at about a nickel?
Get 1,000 shares at a nickel (ignore the zombie cat bounce that will produce) which will cost you $50...............
Now, you legitimately own 1,000 SCO shares that will soon be worthless? or will they?.............. hey, you own 'em, huh? ...............
Just print 1,000 certificates of 1 share each and sell them to linux fanboys to frame and stick on the wall.............. charge ten bucks a time and give your own "death certificate" along with it. That is 1000 x 10 less expenses............. you should clear 8,000 bucks?
You will need to check the local regs, but it would be OK over here :D need some "legalese" on the back of the cert. as well; but all you are doing is selling a legitimate interest in worthless stock............... actually you are selling the "death certificate"............... you will have to check "pink slip" regs as well.
Yeah! Yeah!................ I won't try to pick up the soap.......................
Get in there fast Donkey old chap, 'cause Ralph J Yarro III has already gotten 5,505,949 and has started printing..............
Couldn't have happened to a nicer scumbag IMHO :lildevil:
Ahh, bur you might forget one more way to make money from falling shares:
http://www.nasdaq.com/asp/quotes_ful...&selected=SCOX
It is also in the concerns on the 10-Q.
http://www.marketwatch.com/news/stor...4F21475CA1C%7D
Quote:
Quote:
SCO is blaming Linux for their bankruptcy. SCO Group CEO Darl McBride says competition from the open source Linux operating system was a major reason why the company was forced to file for Chapter 11 bankruptcy protection on Friday. In a court filing in support of SCO's bankruptcy petition, McBride noted that SCO's sales of Unix-based products "have been declining over the past several years."
http://www.informationweek.com/news/...leID=201806893
:drink:
Yea, it must be Linux and not the fact that they sell a product which has half the features of an OS you can download free.
Has anyone here ever set up Unixware and tested it against Linux or BSD?
There are some comparisons here:
http://aplawrence.com/Bofcusm/65.html
Totally irrelevant...........just look at the history.:DQuote:
Yea, it must be Linux and not the fact that they sell a product which has half the features of an OS you can download free.
1. Novell sold off a product that was already dying. The real damage was done by the rise of Microsoft, the Windows operating system (particularly NT) and productivity software.
2. SCO didn't really sell anything, as far as open market new business is concerned. Their business was mainly inertial sales to the large SCO Unix customer base that was established in the 1990's, and legacy systems support for this customer base. They did have a division that dealt with Unix/Windows integration for all flavours of Unix.
3. SCO have never made any real effort to develop new and replacement major products, which leads me to believe that litigation and parasitic licencing were their intended main business platform.
Their Unix product was definately a "wasting asset" and they have demonstrated no signs of doing anything significant about this.
The reason that I say Linux is irrelevant is that the decline was well underway when Linux was really only available for free. Now, most enterprises do not like freeware, and would not, at that time, have considered Linux as a viable alternative.
Sure, the commercialisation of Red Hat and SuSE have changed that scenario, but very much "after the event" IMO. All they have done is speed up an inevitable process. Microsoft and other competitors had already done most of the damage.
I am well aware that Microsoft played "rich uncle", but they couldn't do anything about the fact that their competitiveness was killing SCO anyway............ a sort of "friendly fire" scenario? :)
They are poised to be delisted from Nasdaq. They also admit they may fold altogether. They are toast.
Wow. This is beyond nasty. Guess it shows that just because you can sue anyone doesn't mean you necessarily should nor will you necessarily, no matter how much you believe you are right, get the support you believe you should have.
Yes, but it does have it's amusing side:
Source: http://www.marketwatch.com/News/Stor...yhoo&dist=yhooQuote:
SAN FRANCISCO (MarketWatch) -- Sco Group Inc. :SCOX:
said Wednesday evening it has received a notice from Nasdaq that its shares are not in compliance with the exchange's listing rules. The notice follows the open-source Linux software provider's filing last week for Chapter 11 bankruptcy protection. Sco said it plans to request a hearing before a Nasdaq panel, which will stay a Sept. 27 suspension of the shares. Sco said it cannot provide assurance that the panel will grant its request for continued listing
I blame gore and his penguins :cool::D:lildevil:
Question: is there any way for a "Joe Public", i.e. me :), to actually view their shareholder list? For now and/or for some historical date...
The bankruptcy submission papers are on Groklaw, but all I saw there was the >5% holders - Ralph Yarro and, the largest part, the US share sale broker. So someone sold >60% of the company's shares immediately preceding bankruptcy, and the name of the someone is hidden. Might this hide something interesting, I wonder?..
Hello Michael, and welcome to AO :)
I have it in PDF but it is just over 3Mb in filesize. If you have an e-mail account that will accept attachments of that size, please PM (private message) me with the address and I will send it to you.
The only list is the one that I have, that is the full list submitted under chapter11 filings.
Errrrrrr............ not necessarily. When a company slides to oblivion like SCOX and in that manner, there are a lot of "day traders", "shills" and "fake indians" who descend on the stock like a flock of vultures.Quote:
someone sold >60% of the company's shares immediately preceding bankruptcy, and the name of the someone is hidden. Might this hide something interesting, I wonder?..
Basically they are gambling, just like in poker or even the Nevada slots. This is not investment as we know it ;)
So, these "majority shareholders" probably don't hold any stock, and have no intention of ever doing so.
Apart from Ralph Yarro, I don't think that there has ever been a single individual or entity with a significant holding, and certainly not the 65% that we are talking about here.
Having said that, there are some individual transactions that might merit investigation? :cool:
I'm sure that the transactions that took place right
after the suit was filed are the ones that may ultimately
reveal some dirty dealing. Before the suit the stock was
less than a dollar. Immediately after the filing it shot up
to ten or twelve. I'm not sure where it peaked. Those who
sold stock at that peak are probably under the microscope
already
Many people have already said that the suit was just a part
of a stock manipulation scheme. This is nowhere as big a
story as Enron, but the authorities are no doubt keeping
an eye on the situation.
By the time of the Novell judgement, the stock was next
to worthless anyway. Whatever happens now is just scavengers
playing with the corpse.
:cool:
As an afterthought, It would be nice if, after the stock reached
a penny, a consortium of open source people could buy all
of the stock. Any copyrights now held by SCO could be GPL'ed.
"All your code are belong to us" Muhahahaha!
As I said at that price someone could just buy the thing outright and REALLY piss them off.
rcgreen,
It actually got as high as $20 in 2003/4 :wow:
If you bought the whole thing at $0.01 per share you would have paid $200,000 for nothing. After all, the Court has ruled that the interesting bits still belong to Novell.
Also, why put $50,000 into Yarro's pocket................. give it to me instead.......... I promise to spend it on beer :D