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SCO Execs Dumping Stock
luigi6699 writes "According to the Salt Lake Tribune, 'SCO Group executives have sold about 119,000 shares of their company since it filed a lawsuit against IBM in March...' Their CFO started the $1.2 million sell-off just after the lawsuit."
If I were a SCO shareholder and I saw the SCOX Chart, I would be dumping my stock too!
Yahoo 5 day chart: Can you spend a trend?
The SEC should really look into this. The lawsuit is totally bogus. SCO is definetely not acting in the best interests of its shareholders. SCO seems to be acting in the best interests of Microsoft. It is very curious how Microsoft and SCO reached some kind of licensing agreement in the context of this lawsuit. It is also curious how SCO claims that a single company purchased one of their bogus licenses without disclosing the name. There needs to be full disclosure about the relationship between SCO and Microsoft.
It's class action attorneys, and not the SEC, that 'regulate' this behavior. The SEC can't have the resources to regulate every company in the U.S. but class action attorneys, because of the contingency fee structure, do have the resources to sue them.
Why do you think the corporations complain so much about class action lawyers? You don't hear them whining about the SEC.
I only say this because I always hear complaints about class action attorneys (which seems strange to me on Slashdot). They perform an essential, and very valuable public service. And yes, they make good money from it -- but only when they win.
If I go and buy a share or two of SCOX from one of the many rats fleeing their sinking ship, could I claim that my Linux installs would then be non-infringing since I would be a part owner of the company which "owns" the IP my 2.4.x kernel is supposedly copied from?
Well, they don't only make good money when they win. They generally make good money when they settle, which they seem to do at least 99% of the time. Much of the time they settle for less than what it would cost the sued company to adequately defend the lawsuit. That seems like a shakedown. You don't read about it in the paper, but this happens all the time.
The other problem with class action litigators is that they keep a huge chunk of whatever damages are collected, rather than giving it to the people damaged. This makes their winnings a de facto penalty, rather than a repayment of damages. Penalties should be imposed by and paid to the government, in my opinion, not by and to individuals. If the class action attorneys can make so much money (and some of them have made a *lot* of money) from penalties, why shouldn't the SEC be allowed to enforce laws and extract penalties? In effect you've outsourced justice to a bunch of unprincipled vigilantes. Not good.
Milo
I'd take a look at the trend in this linear SCOX Chart for better information.
********* sig: If you don't like the law, get filthy stinking rich, and buy a better one.
This was an interesting post over on Yahoo (concerning the dramatic rise in SCO share price in the closing minutes of trading):
"100 share lots, and the whole last 1o minutes (half the gain on the day) were done on less than 5000 shares. Thats less than 1/250th ( 0.4% - 4/10 of a percent) of the daily volume accounting for over HALF the closing price.
If you look at the whole runup at the end, less than 1% of the volume accounted for 80% of the closing price gain.
Someone is playing real monkey business with this stock.
I wish there was full disclosure with buying and selling like there is on political donations. It would be very interesting to see who it is that keeps manipulating the closing price."
That's Illegal.
(1) When the Linux crowd proves they aren't using stolen SCO IP, the stock will fall apart, and these guys will face a shareholder's lawsuit and a serious investigation. Expect these guys to get the hell out of the country, fast.
OR:
(2) Linux actually *does* have SCO IP stuck in it, and these execs just want to bail out while the stock is high and before people realize that Linux will survive whether it has to pull some code out or not.
Actually, most of the sells were automatic. Ie, a threshold is set and when the stock gets there a certain amount get sold. Its one of the ways execs try to avoid insider trading.
"Thanks to the remote control I have the attention span of a gerbil."
The very next story in the business section of the SLTrib is also about SCO (click the blue right arrow at the bottom of the original article or click the link below):
8 3192.asp
http://www.sltrib.com/2003/Aug/08122003/business/
A solution to the problem with music today
Most of the SCO executives are still holding on to quite a bit of stock. They're going to have to pump it a few more times to get rid of it. Now the license announcement is causing slow recovery of the price but in real terms, the price has plateaued and more hammers are going to fall on them. SUSE has all but announced they're cooking up something nasty, Sony and other consumer electronics firms aren't going to want to pay for their bogus licenses. Last but not least, every kernel contributor is a bomb that could go off at any time. Some of them may even have money for ruinious countersuits of their own.
So what to do? They would have a hard time topping themselves in the outrageous statement department. I see at least four more pumping actions they can pull. They can loudly announce that they will "soon" be filing suit against large corporate users. When the price flattens out again, then they can actually file some of them. Then it's loud announcement time again. This time they'll bleat that individual users and small organizations are being sued. Then they can actually sue a few.
They're like a turd on the ground. Yeah, we'll be able to squash it but the smell will stick to our shoes for a loooong while.