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BayStar Cashes Out of SCO Stock
Kurt Wall writes "According to Yahoo! Finance, BayStar, the company that funded SCO to the tune of $50,000,000, and then later changed the terms of the deal, has requested that SCO redeem the 20,000 shares of preferred stock issued in return for the funding. The reason? BayStar states that 'SCO has allegedly breached Sections 2(b)(v), 2(b)(viii) and 3(g) of the Exchange Agreement.' Naturally, SCO thinks it has done nothing of the sort."
Talk on the boards is that the breaches are due to SCO not revealing the entire story regarding their claimed 'ownership' of UNIX SysV. Notice SCO now states that UNIX is a registered trademark of The Open Group.
In any case, looks like you live by the sword you die by the sword. It was after all Darl who stated "Contracts are what you use against parties you have relationships with". None of this using contracts to clarify just what each other's purposes are, and being a record of an agreement, they're to be used as weapons. SCO's breaches are what will come bite them on the ass, and nothing will save them with a contract that they can't hide way back in the muddying of time. $20million worth of redeemed stock is $20million SCO can't use against Linux, Customers, Ex Customers or whoever else has tried to be nice to them in the past.
It's only a few hour's drive to Lindon from here. I wonder if I should go watch the fireworks.
Shak's nude anime gallery
Before anyone gets the wrong idea, plase note, these are PREFERRED shares, not the normal one's you see quoted prices on...
These shares value is set at $1000 each... so this is quite a big chunk out of SCO's warchest...
Happy day!
Never ask a geek why, just nod your head and slowly back away. -Rob Malda
Woo, SCO's stock is down 10.56% already. What a great time for a shrewd investor to buy SCO stock at bargain prices!
I'm weeping on the inside.
I have a "Zero Policy" tolerance.
*/
Always the first to leave a sinking ship
more about me
Watch it fall in near-real time! Go go go! Ahhh... this makes my day :) At time of posting, last trade was 8.68. Also, check the trade volumes after the press release (at 1:45pm). People are paying attention.
Karma: SELECT `karma` FROM `users` WHERE `userid`=138474;
Well I've at least heard of SCO, so their statement carries more weight with me.
So what will happen? I say we're going to see a SCOX vs BayStar lawsuit. SCO likes lawsuits. They like to stall for time while talking shit to the press. It gives them time to dump stock gotten cheaply from options. We'll get more of that. Only this time, investor-types (people who matter as far as the stock is concerned) won't like it. Fucking around with your big investors? Now, that's something else compared to fucking around with a bunch of hippie nerds and IBM.
I assume the "SCO must have permission from BayStar to start lawsuits"-clause in the contract won't be a hindrance, since probably BayStar will start it :-)
If BayStar is able to get ~$20M back (20000 at $1000 plus interest and penalties), then maybe RBC want their part back... which would instantly kill SCOX dead, dead, dead.
suggested mod-limit: 3
Belief is the currency of delusion.
Phase 1. We know SCO's business plan is flawed.
Phase 2. The Stockmarket knows that SCO's business plan is flawed. The share price is jumping about because people just like to speculate in the short term.
Phase 3. And Now baystar knows SCO's business plan is flawed (and finds a technicality to get their shares back)
Phase 4. ??? [The obligatory gnome-esc gap in the logic]
Phase 5. Profit? haha.. not this time. Go Directly into Administration. Do not pass go. Do not collect 200. Darl can look forward to having tux inserted, lovingly, into his anus by his boyfriend in prison :D
Simon.
Pray I don't alter it any further.
sulli
RTFJ.
That they would be suing BayStar for the sum of $50,000,000 for their decision to cease funding their lawsuits.
Baystar is only on the hook for $20 Million. Royal Bank of Canada holds the other $30 Million.
Actually, it was the Royal Bank of Canada that changed the terms of the deal back in December 2003. But, what's a detail like that among friends?
Gosh, making accusations, and not providing any specifics! That's horrible!!!!! I'm sure SCO is outraged.
Mike
BayStar probably wants out because the incident with Microsoft "recommending" that they invest looks bad.
--Mike Boos
From SCO's Press release
"BayStar's letter did not provide specific information regarding SCO's alleged breaches of the Exchange Agreement. SCO is attempting to obtain specific information from BayStar"
SCO now stands for "Shit! Cash Out!!"
Comment removed based on user account deletion
Made my day. Have a good weekend, Darl and Chris.
"Eve of Destruction", it's not just for old hippies anymore...
"Oh my God! The quarterback is toast!"
Do we want every post to have a advertisement in the .sig? I personally think that moderators should mod down any post with SPAM at the end.
Visit my website!
absolutely titilating.
boycott slashdot February 10th - 17th check out: altSlashdot.org
So now SCO is suing its VC partners. Does it get better than this?
"It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
Seriously, when the fuck did SCO hire the Iraqi Information Minister?
Did anyone notice that the stock was tanking BEFORE the press release? I guess they put out a negative release to justify the insider-trading fall.
Isn't funny how what goes around comes around. Is it just me or is this the funniest news of he day? My conspiracy theorist mind just can't help but thinking that somehow M$ will find some way to get this lost cash back into the SCO warchest at some point in the future. I know that Linux may not be the biggest desktop threat, but I'm pretty sure that Bill Gates & Co. hate Linux like nothing else. How do you use monopolistic buyout power against a OSS? This must be the best business riddle posed to Bill yet.
Even if they were, they've been exposed and SCO is burning up rapidly and isn't likely to be able to stick it to Linux. There's little reason for anyone, including Microsoft, to keep money in SCO at this point.
May we never see th
$8.33
Your CPU is not doing anything else, at least do something.
or I'm not Anonymous Coward!
They're still talking out of both sides of their mouth though. They still claim in their press release that they are, "the Owner of the UNIX Operating System."
Funny that they are the ones announcing BayStar putting the pinch on them. Guess they want to put the "positive spin" on it, just like everything else...
Your Servant, B. Baggins
Teehee, shorted another 200 shares at $9.15 when I heard the news. To all my fellow cube-dwellers out there, remember that sometimes reading the message boards can be whole hell of a lot more profitable than whatever the fsk it is that your employer's paying you to do...
I'm not trolling, I'm trying to be insightful, or at least funny. Honest!
8D
"In a 32-bit world, you're a 2-bit user. You've got your own newsgroup, alt.total.loser." -Weird Al
SCO once again makes the list of losers in trading today! At this rate, maybe it'll be number one at something by days' end.
That screaming sound you hear is SCOX stock breaking the sound barrier as it plunges into the abyss. Thank god, it is about time.
I Am My Own Worst Enemy
wtf is Que ?
The soundtrack for the SCO saga just cross-faded to a distant drumbeat, getting...slowly...louder.
If SCO flounders, what else are we going to bitch about and plot against? Also; SCOwned!
If we don't go to court to test the legality of the GPL in the SCO case, it means it will happen later... perhaps against someone who doesn't have their head up their ass.
Going to trial against SCO is a sure thing for IBM, and therefore good for Linux. IBM and Redhat would tear SCO a new one, and the GPL would have it's day in court against the mental midgits from Provo.
If SCO goes bankrupt, this (I assume) goes in a legal round file somewhere. Then we can just wait for Microsoft to come at us directly with an army of lawyers that dwarfs IBM.
Linux users are required to celebrate with beer and an assortment of tasty food tonight. Now. Enjoy yourself tonight, and be happy. It's a good-looking new world for Tux and the rest of us out there -- things just got a lot sunnier. :-) Whee!
May we never see th
Ok, a bit conspiracy-theoryish, but many including myself have speculated that there was someone behind the scenes of the entire SCO mess pulling the strings.
Could it be that said string-puller has decided that there is too much risk that (a) SCO will not only lose its suits, but do so in a way that validates the GPL (b) IBM might break through the Canopy/Baystar corporate veil and find out who the string puller is? And therefore that person has taken some action to force SCO into bankruptcy and pull the plug on the lawsuits?
sPh
In SCO's headquarters...
Darl McBride: 'Damn!... What can we do?'
Employee: 'What if we sued them?'
Darl McBride: 'Good! GREAT! Let's sue them. But, er... what for?'
Employee: 'Hmmm...'
Darl McBride: 'Let's say, that, erm... BayStar runs FreeBSD! Let's say FreeBSD contains our IP.'
Employee: 'You have not lost your genius, Mister McBride! JOHN! Get a few lines from the BSD source code, will ya? Any lines will do.'
To help out, I've summarized sections 2(b)(v), 2(b)(viii) and 3(g) of the Exchange Agreement:
2(b)(v) : Presumption of Correctness
2(b)(viii) : Failure to Pass the "Laugh Test" Clause
3(g) : General Asshattery Clause
Not necessarly true. Remember, Microsoft wants all Unix vendors dead. Order may not be important.
"It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
...this serves these SCO fucks right once and for all. Their stock price is slowly oozing through the floor.
I do not moderate.
Maybe it was IBM instead of Microsoft behind the Baystar investment? :)
Yes, they can still litigate, but venue could change to a US District Bankruptcy Court. Things also become a bit more complicated when a company files Chapter 11 in that certain pending issues, litigation, etc, are subject to be "stayed" while the mess is ironed out.
Chapter 11 might enable SCO to drag things out a bit longer in bankruptcy, but one fact would be hard to erase - the fact that the company is bankrupt. On the other hand, Boise, Microsoft, and others, might try to pick up the pieces and continue litigation.
Whatever happens - SCO isn't going to go away as soon as some of us would like. And besides, they'll just be replaced by another Microsoft proxy or even (eventually) Microsoft itself.
BayStar's letter did not provide specific information regarding SCO's alleged breaches of the Exchange Agreement
Talk about being hoist on your own petard! Hah! Show the infringing lines of the agreement, 'kay?
This was an opportunity to test the GPL in court, but yet again, that will be delayed if SCO dies by other means. The court case must play out.
Join Tor today!
According to the Street.com article "BayStar Says SCO Breached Note":
(emphasis added) Thus, even if SCO eventually prevails over Baystar this may still sink SCO. SCO won't be able to obtain enough funding to battle IBM, et al.
Only Women Bleed (Sex, Sharia remix)
GTRacer
- alphabetically sorted for your convenience
Defending IP by destroying access to it? That makes sense, RIAA/MPAA. Go to the corner until you can play nice!
Chapter 11 means possible emerging out of bankrupcy as well as possibility for interested creditors to purchase liabilities (including rights to ongoing litigations). It is not the chapter used for winding down a business. The correct chapter should be 7. Liquidation. Game over.
Baker's Law: Misery no longer loves company. Nowadays it insists on it
http://www.sigsegv.cx/
I don't know why, but for some reason I'm reminded of what I heard once about tornadoes.
It's not the high winds that damage a house, it's that sudden change of pressure that causes the house to explode from the imbalance.
"Provided by the management for your protection."
Lackey: Sir, there is potential flaw in our plan, shall I have the shuttle made ready?
Darl: What in our moment of triumph?
-----
Ibm: Ok redhat, Youre all clear now blow this thing so we can all go home
(Scene of SCO imploding)
(Fat guys with beards in Star Wars t-shirts
dancing in the streets)
I would call my broker but my mom is upstairs on the phone right now.
Trolling is a art,
Don't miss out on the Wild Arse Guess contest each day on the SCOX stock price... It's a whole new ball game now
"Whoever would overthrow the liberty of a nation must begin by subduing the freeness of speech."--Benjamin Franklin
...It's the End of the SCO as we know it,
It's the End of the SCO as we know it,
And I feel fine!
I feel fine!
I think this is the first recorded instance of the ship leaving the sinking rats
My money is on Count Dooku. If Microsith starts building a big round space station in orbit, we are all screwed!
I Am My Own Worst Enemy
... where SCO has been ordered to:
It's a tall order. I foresee a lot of coffee drinking and nail-biting this weekend, whether or not the smoking suitcase is full of evidence.
Q: What did the comedian say to the crowd?
A: If I knew, this joke would be funny.
We are altering the deal. Pray we do not alter it any further.
"'I pass the test,' she said. 'I will diminish, and go into the West, and remain Galadriel.'"
- JRR Tolkien.
Well, Linus does look a little bit like Yoda, so all may not be lost....
somebody set up you the bomb!
:)
You are on the way to destruction. You have no chance to survive make your time.
Ancient words of mistranslated wisdom
If i had mod points, i'd make this funny
My - what a small drop. It just goes to show that many investors are what?
Assume that MSFT et al don't want SCO to suffer a clear string of court losses but would be interested in a 3rd party FUD asset that theoretically *might* rear its head again (eg. pot'l MS salesman, privately: "L is unsafe" or " I heard that more IP suits may be filed". A nice-for-MS-sales hard-to-trace fart in the open office) Inappropriate if MS owns SCO's "IP cremains", but an "independent" 3rd party might have fun while collecting payments originating from MS/Gates et al retreading Darl's persona. Sounds like time for MS' next front guys to repo SCO. Beware the borg.
Well if it is so, it will go into Chapter 7 or 11. At that point if there is any interest to understand who this party is IBM can buy the relevant assets.
Baker's Law: Misery no longer loves company. Nowadays it insists on it
http://www.sigsegv.cx/
Que all SCO thinks jokes
I think you mean 'cue'.
Vote for new mod!!! Score:-2,Imbecile
Pardon my impertinence, but that's a dangerous sig to be putting on a post like yours.
Tubal-Cain smokes the white owl.
It's warm and sunny here, so I'm going to channel some good vibes and be optimistic for a rare and brief moment.
Flash back to when the Penguin said to Darl: "If you attack me now, I will grow stronger than you could possibly imagine..."
We've learned a lot from the tactics of SCO. Perhaps most importantly, Linux has had huge visibility as a result of the lawsuit. Plus there's time to tinker or shore up defenses. Plus laws in different countries are different.
Yes. I think in movie scenes. So what if I do?
I trade online, you insensitive clod!
I claim first use of "Error No. 0B" - or "No. 0B error." It'll be the new ID 10T!
Come on we know it's coming so just have the newstory all ready to go.
."
here a fill in the blank form for it to help you along
_____ writes today SCO sued ____ for ____ and $____ in damages. SCO contends that ____ failed to _____ resulting in SCO ______. When reached for comment _________ declined to respond at this time due to pending _________ but released a press release stating "At this time _________
According to the ZD Net article BayStar seeks to retrieve investment in SCO:
(emphasis added) Makes one wonder who, if anyone, else owns preferred stock in SCO that is subject to the same or similar provisions.
Only Women Bleed (Sex, Sharia remix)
Your honor, we were too busy with our taxes to provide the information. It's all IBM's fault.
Someone, not sure of the quality of the bank, asks to cash out in a high profile way.
Soon, everyone else follows killing the bank.
Maybe this will signal the begining of the end for SCO.
I couldn't understand how their stock prices went up to start with all of the experts purporting that they never had a case.
Steve
No, he means (and you meant) "queue".
Google is your friend.
"BayStar's letter did not provide specific information regarding SCO's alleged breaches of the Exchange Agreement. SCO is attempting to obtain specific information from BayStar and is evaluating its obligations and options with respect to the redemption notice. "
ROFLMFAO!!! Anyone notice that little bit of irony?
SCaldera's been running around saying that IBM, Novell, Redhat, Linus, your grandma, and everyone else has stolen their code and used it in Linux. MILLIONS of lines, they say.
When asked for specifics (even by the court) they refuse to grant any...
This is the first blow... Even if SCO holds off the redemtion request, they now must expend money in court to fight it. RBC might follow suit (and they should, or they are pissing away their $30 million).
Either party has an excellent chance, if they are right on their claim to have the court FREEZE those assets pending hearing.
This effectively kills SCaldera.
BayStar has made the decision to do this because they have no chance of ever getting their money back otherwise. And they are doing this knowing it destroys SCO.
This whole thing is over within 6 months now.
Corporatism != Free Market
New SCO Preferred Series B stock certificates! Step right up! Get 'em while they're hot.
New certificates being printed on convenient pre-perforated rolls of high quality two ply facial tissue.
I'll see your senator, and I'll raise you two judges.
But watch out for the "dead cat bounce". If you short at the wrong time, even if you're right long-term, you can still lose your shirt...
If you were IBM, what would you do: Motion for dissmissal (sp?) or Prolong the process until SCO is completely broke, and then buy them cheap?
NB: shorting a stock consists of "selling" shares you don't own. You can then "buy" them at a lower price. The poster sold at $17 and can buy back today at roughly $9, making $8 a share.
Yes, this means that the poster effectively owns negative shares.
It's the smart thing to do with SCO stock if you think they're full of shit. But it's risky: if the lawsuit has merit (yeah, I know, it's ridiculous, but bear with me) and the shares shoot up to $40 each, the poster is out just a ton of money.
Finding God in a Dog
If SCO goes bankrupt, this (I assume) goes in a legal round file somewhere. Then we can just wait for Microsoft to come at us directly with an army of lawyers that dwarfs IBM.
IBM was accused of not keeping their hands clean with contracts and licences. They will not rest until SCO's accusations have been completely and utterly discredited, even if it means flogging a dead horse. That they "ran SCO's war chest empty" simply won't do.
It has very little to do with the SCO case at all. IBM is relying on major contractors like military, government, major businesses selecting IBM because they are rock solid and trustworthy. That the data they entrust to IBM systems will be handled exactly as specified in contracts.
That, and I suppose some people in IBM would take a certain pleasure in doing it. But hey, if you can have both business and pleasure, why not?
Kjella
Live today, because you never know what tomorrow brings
Officer: "I saw you throw it!"
Sco: "I didn't throw nothing!"
Officer: "I suppose this key is yours though right..."
Sco: "Yeah, the key is mine, but I didn't throw no damn crack pipe, do I look like a crack head to you?"
Sco: "Don't answer that..."
If carrots got you drunk, rabbits would be fucked up. - Comedian Mitch Hedberg R.I.P. 03/30/68-2/24/05
This whole process has smelled of something not quite right.
Through the whole process, SCO's claims were bordering on ridiculous. Their antics rarely ever resulted in a stronger chance of being able to win the case.. they merely generated more publicity.
It looks to me like their only goal in the whole process was to create as much FUD about Linux and Free Software as they could. To get as much media coverage as possible, creating that seed of doubt in as many IT managers minds as possible.
The grand finale is when they cannot fund the lawsuit anymore, and close up shop. With no conclusion to the case, that cloud of FUD still hangs over Linux.
Yeah.. that's quite a conspiracy theory. It's probably more likely that the SCO people are merely morons. But, whether by design or by their ineptitude, I think that the death of SCO before resolving the case would be a bad thing.
A less flippant summary:
2(b)(v) "You didn't outright lie to us about what you said about yourself in the original purchase agreement."
2(b)(viii) "You didn't omit any material fact that would make what you say about yourself misleading. You also haven't withheld from the public information you are required to disclose by law."
3(g) "You won't provide non-public information to us after the press release."
Not that I don't find yours more entertaining.
..you'll be joining me a lot sooner than later.
Religion is for people afraid of going to hell.
That was a popular theory 20 years ago; I remember during a tornado warning we'd open windows a crack before ducking into the basement.
More recent studies show that the high winds are in fact the problem, not the pressure imbalance. So no need to get your carpet wet during the next blow...
Didn't Teledesic fail?
No, he means (and you meant) "queue".
From the American Heritage Dictionary:
cue : 1. A signal, such as a word or action, used to prompt another event in a performance, such as an actor's speech or entrance, a change in lighting, or a sound effect.
That's what I meant. What did you mean?
Tubal-Cain smokes the white owl.
To be fair, there is also the lion school of legal practice...fierce, brave, tenacious. Unfortunately the rats, vultures and sharks tend to dominate.
Wow, for the first time ever in my /. posting history, it's actually relevant to add: IANAL.
This is where the serious fun begins.
"Does this protend a soon to be expected sell-off of shares to the general public by SCO itself?"
You're sure aiming high.
I'm still waiting for the first negative assessment of SCO to appear in any mainstream press. At least anywhere that would be taken seriously by business folks. Except for Slashdot, Groklaw, and the occasional story here and there, you'd think everything was just fine.
There's hardly ever so much as a passing mention of the litigation, much less anything that would resemble allegations that McBride et al are straight-up crooks who are lying, probably committing perjury, and making fools of investors and judges as they abuse the system and take assloads of cash in the process.
It's never mentioned. Never a word about IBM, Redhad, Daryl's big mouth, the tenuous nature of their claims, etc. At least the Baystar story makes it onto the news sites. Some things can't just be airbrushed out, I suppose. Taking a hell of a long time for the tables to turn. I understand that things may be obvious to you and me (we're biased, after all), and not so obvious to others. But I don't see how you could side with SCO, given even the most perfunctory glance at the facts of the matter.
Then again, there's tens of millions of voters who plan to cast ballots to re-elect Bush in November, and it escapes me how that's possible too.
-fb Everything not expressly forbidden is now mandatory.
the preceding comment is my own and in no way reflects the opinion of the Joint Chiefs of Staff
Now, now. Such language is frowned upon in Slashdot comments.
-- clvrmnky
Just because I was interested I ran a tracert on that ip, and I looks like a computer running off of a Comcast line. Can you say TOS violation? Hehe, Comcast is probably, if they haven't already shut off his line. ;)
SCO doesn't have enough money to stave off IBM's legal grinding wheel, since it can't raise more capital.
Baystar loses its corporate ass, which will make it harder for any company to use lawsuits as a business plan.
The chances of BatStar seeing a dime are, well, slim as a thin dime. SCO lives in another reality, SCO will simply deny it's in violation, and stall any lawsuits until they fold. Darl and his buds will, by that time be on whatever planet their Mormon God has given them, or getting jiggy with Jeffrey Skilling in some resort jail.
"Who are in control, they are not in control of anything - they don't even control themselves!" - Glen Beck
http://finance.yahoo.com/q/bc?s=SCOX&t=1d
Don't law firms use lawsuits as a business plan?
I might be wrong...
Thank you. The actual sections weren't readily apparent when I read the links, and I really did want to know what they were. I'm glad they are actually major issues, and not something SCO could easily get out of, like say... all press releases must be in 10 point Times Roman...
To be fair, there is also the lion school of legal practice...fierce, brave, tenacious. Unfortunately the rats, vultures and sharks tend to dominate.
Yeah, it's such a pity that the actions of 95% of lawyers make the other 5% look bad.
I'm sure your walkie-talkie's free... go ahead make the call.
And that's on high volume of trading. The slide has begun. I'm getting up a pool on when SCOX will be pulled from trading.
I don't need no estinkin'
Jeepmeister
I think he meant:
;)
queue 3a : a sequence of messages or jobs held in auxiliary storage awaiting transmission or processing
As in line up the jokes, because there will be a lot of them.
I worry that if the BOC joins in and asks for their $30M back, SCO goes bankrupt. If they go bankrupt, it's not like their lawsuits go away. Instead (IIRC, IANAL as usual) suits they filed are put on hold until after administration, while suits filed against them are voided with the option to re-file after administration. Stretching these out even more years wouldn't be a good result, I don't think. They need to be crushed in court.
Anyone who is a lawyer, or knows about corporate bankruptcy procedures, and can comment on this?
As we've come to expect, /.'s editors got the story wrong. Baystar has not cashed out. It would like to. It's trying to. But it's not going to get its money out without going to court, which could take a couple of years.
Yeah, saying what I meant.
You can see that most people who want to buy aren't buying it because of its value, but because of its potential lack of value. While it seems most people wanting to sell are trying to get out with the least amount of loss.
Yeah, that's what I meant.
Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
of burning IT companies in the morning.
Corporate Headquarters and Principal Executive Offices 404 Wyman Street, Suite 500 Waltham, MA 02451 Main: 781-464-8000
Help fight continental drift.
BayStar's letter did not provide specific information regarding SCO's alleged breaches of the Exchange Agreement.
They pulled an SCO on SCO. Bahahaha
The SCO - Baystar Exchange Agreement [PDF warning].
Only Women Bleed (Sex, Sharia remix)
Others losing in a big way today: Netflix and DoubleClick. Don't expect me to be shedding any tears today, nossir.
#define DRM chmod 000
Capital Guardian Trust Company, $22M* in SCOX stock
Royce & Associates, Inc., $27M* in SCOX stock
Krevlin Advisers, LLC, $5.1M* in SCOX stock
Legg Mason Inc., $4.9M* in SCOX stock
Oppenheimerfunds, Inc, $2.4M* in SCOX stock
(* value subject to dramatic change, fund managers subject to losing all credibility)
Meanwhile, the crooked fund managers manipulate the stock so that the Director and VP can exercise their options and unload before the stock hits rock bottom Insider Transactions.
Check your mutual funds people. Don't do business with companies that are taking your money so some VP and SCO can throw a party with a peeing ice sculpture.
but he has naked pictures of my wife too! He's a dead man!
Quidquid latine dictum sit, altum viditur
Also, don't forget the Leeches. That said, everyone says they hate lawyers, but we're always the busiest at the cocktail parties. Everyone says they love teachers, but they tend to end up in the corners. IAAL. --AC
SCOX down $1.29 to 8.37 (13.35%) today and already down more in after hours.
Classic PR move - release bad news on a Friday when everyone has gone home and the markets have time to absorb and forget about it over the weekend.
the major advances in civilization are processes which all but wreck the societies in which they occur - A.N. White
Can somebody please comment on what happens to the lawsuit if SCO runs out of cash and dies? Can IBM still get the declaratory judgement?
___
If you think big enough, you'll never have to do it.
"I look at this as bad news for SCO," said Dion Cornett, an analyst for Decatur Jones Equity Partners -
Please let me know how you get a job like this.
Here I am posting to Slashdot risking Mod Point and all when I could put my brain in Neutral and make Money.
Help fight continental drift.
I wonder how long they can procrastinate on this before Novell asks for a court order to at least put this money in escrow? This, not the BayStar move, might be what finally makes it impossible for SCOG to maintain its litigation. Please Novell, do not take such action until SCOG's attack on the GPL has been well and truly demolished.
I hadn't previously realized that one of Canada's major banks, Royal, was a SCO backer. I urge everyone in Canada who has business with Royal to cancel their cards, accounts, move their mortgages, etc., and when you do it, write a letter to RBC telling them why.
It probably won't make a difference, but you don't have to have YOUR money in SCO, which is where it is if it's in a Royal Bank account.
Re this: "The letter asserts that BayStar is entitled to the redemption of its shares under Article VII.A(vii) of the Certificate of Designation, Preferences and Rights of the Series A-1 Convertible Preferred Stock because SCO has allegedly breached Sections 2(b)(v), 2(b)(viii), 2(b)(viii) and 3(g) of the Exchange Agreement dated February 5 2004 among SCO, BayStar and Royal Bank of Canada, which also holds shares SCO's Series A-1 Convertible Preferred Stock."
IBM will seek a summary judgement, meaning they'll ask the judge to toss out the lawsuit for lack of merit. Actually, the suit may well be tossed out Monday if they can't produce any of the discovery material requested.
Here's the relevant language . . .
Upon filing of bankruptcy petition, all legal actions being taken or to be taken against debtor are halted, no new lawsuits can be commenced and ongoing proceedings of judicial or quasi-judicial nature are halted. Bankr.Code, 11 U.S.C.A. 362(a).
Hope that helps.
--AC
If you have had a consistent short position, you will have gained 50% or so on your money. If you feel confident in your position, buy to cover and take out a new short position at the current share price, if SCOX falls by 50% again you will make a 50% return on your new position, but if you leave it as is you will only see an additional 25% return above the 50% you have already made, the difference is a 125% return vs. a 75% return. Theoretically, if you you cash out and take a new short position every time SCOX drops 50%, you can earn vastly more money.
Example: $1000(SCOX@$18) original short positon in SCOX. SCOX drops 50%, you make $500 and lock that in. You take a your gains and take a $1500(SCOX@$8) short position, that drops 50% and you make $750 and cash out again. You have now made $1250 more in gains, more than doubling your original position. By doing that every time SCOX drops in half, your position grows by half, $1500(SCOX@$8) turns into $2250(SCOX@$4) into $3375(SCOX@$2) into $5062.50(SCOX@$1)into $7593.75(SCOX@$.5) and then you let it ride to zero and victory where you collect! Under your plan the most you can make is $1000, my plan will make huge cash money but unfortunately I am too chicken to do this as I am nearly broke. A way to cut your risk is to sock away some of your gains in cash to protect against a margin call if SCOX momentarily fluxuates upward. A way to magnify your gains is to find an instrument that will go up in direct proportion as SCOX falls, but you will probably need cash on hand if your short position gets called in. A lot of people shorting SCOX can completely obliterate the share price in a matter of hours under the right circumstances. Enron and Worldcom went down that way, the short sellers took over and they went down in flames. You ever wonder why rich people like hedge funds? Now you know!
The chances of either Baystar or RBC getting their money back is slim to none.
Forgot to include my citation:
This is from In Re Joe DeLisi Fruit Co., 11 B.R. 694 (Bnkrtcy. Minn. 1981).
--AC
"This is the interpretation of the matter: MENE, God has numbered the days of your kingdom and brought it to an end; TEKEL, you have been weighed in the balances and found wanting; PERES, your kingdom is divided and given to the Medes and Persians."
"Then Belshazzar commanded, and Daniel was clothed with purple, a chain of gold was put about his neck, and proclamation was made concerning him, that he should be the third ruler in the kingdom."
"That very night Belshazzar the Chaldean king was slain. And Darius the Mede received the kingdom, being about sixty-two years old." (Daniel 5:1-31 RSV)
You idiots said you had a case - give me the money back!
Three IPs for the Linux kings under the sky, Seven for IBM in their halls of stone, Nine for SGI doomed to die, One for the dark Darl on his dark throne In the land of Utah where the shadows lie. One IP to rule them all, one IP to find them, One IP to sue them all, and in the courtrooms bind them In the land of Utah where the shadows lie.
Yes, "analysts". Jebus fucking crabs. Yankee Linux findings rigged too. I'm SHOCKED! shocked I tell you.
Belief is the currency of delusion.
Wish I had mod points for you. I expect it will be before mid-day on Monday.
I suppose if enough sell orders come in over the weekend, it's possible that it will be pulled at opening on Monday. Should be interesting to see what happens.
I can guarantee you, though, if you don't already have short position, it will be nearly impossible to get one any longer.
"Outside the IT world, this contract dispute is really not that big of a deal."
I don't think the contract dispute is news either.
It's the racketeering, stock manipulation, and perjury that alarm me.
-fb Everything not expressly forbidden is now mandatory.
Fine. I'll take the two houses.
Because Boies once worked for IBM, back when the US Govt sued IBM for antitrust. In the legal industry, the fact that Boies was once a "related party" to IBM and now he's an "adverse party" since he's working against IBM, that constitutes attorney "Conflict of Interest" (COI). If Boies botches, or even just loses the case for SCO, then SCO can solidly claim "legal malpractice" against Boies, take him to the cleaners and possibly ruin his ability to ever practice law again.
Given the high profile of this case, I'm still stunned and amazed that noone has made a big deal of this yet. I used to work in the lawfirm computing biz, and was an expert in building COI databases and software search engines. Doing a COI search before taking on a new client was a fundamental requirement at all the lawfirms I worked for. No firm would dare even think of taking on a new client without a thorough COI search and even the slightest hint of a COI would be a disqualifier. Boies past employment by IBM isn't a vague COI, it's a hugely blatant COI. Something smells really, really fishy in the legal world about this whole SCO case.
-
If the Closing Sales Price of the Common Stock is less than $10.50 (as adjusted to reflect any stock dividends, distributions, combinations, reclassifications and other similar transactions effected by the Corporation in respect to its Common Stock) for at least twenty (20) consecutive trading days, the Corporation shall have the right to redeem any shares of Series A-1 Preferred Stock then outstanding at price per share of Series A-1 Preferred Stock equal to the Face Amount plus all accrued and unpaid Dividends thereon through the closing date of such redemption.
OK, has that happened? Almost, but not quite. Look at the closing price data. From 9 March 2004 to 2 April 2004, there's a string of 19 days with a closing price below $10.50. Now we see why SCO frantically tried a stock buyback program, which pushed the price above the threshold for a mere three days.But there's a clause in the Baystar agreeement that prohibits SCO from doing most share repurchases.
This is going to get very ugly. Probably on Monday. When, remember, SCO finally has to disclose to IBM and the court what the claimed "infringing code" is. That deadline is tomorrow.
The only SCO suitcases I think anyone will see are the stinky ones full of crap and the bulging ones with the brochures for Brazil ;>
If you want to profit, phase 4 should be "buy long term puts".
Other potential strategies would be to sell non-covered calls or to short-sell the stock, but those are more risky. At least with the puts your loss is limited by the amount you paid for them.
I'm holding out hope he's a troll, otherwise our educational system is even more fucked than I thought.
they are also going to loose massive amounts in stock value. a major backer pulling out of a venture always hurts stock prices.
If you mod me down, I will become more powerful than you can imagine....
So, if everyone shorts that means a huge amount of selling, bringing the price down. If enough shorting happens and the stock is low enough, it becomes a self-fufilling prophecy.
From the SCO press release: "received a letter on April 15, 2004 from BayStar Capital II, L.P."
I *knew* something good would have to happen on my birthday!
"Given the connections that Baystar has with MS/Paul Alen et al" No, no, no. People keep reciting this same bit of misreading. The original Paul Allen assertion was based on folks not reading the large type header of a graph in a pdf white paper from Baystar - "Top Ten Investors All PIPES since 1995" - not Baystar PIPEs. This had also been reported incorrectly by wired online, has never been corrected by them, and has taken on a life of its own as an urban legend.
I just had to ask.
Do you think that there might be a connection between Sun and Microsoft on this one? Look who would have gained the most from SCO 'owning' Linux. Not Microsoft, but Sun, the most beleagured UNIX provider at present. I'm having trouble drawing the obvious connection - something more subtle going on here?
prose (P) Pronunciation Key (prz)
n.
1. Ordinary speech or writing, without metrical structure.
2. Commonplace expression or quality.
This sentence is prose, as it is an ordinary sentence.
Lyrics from a song, and a poem from LotR are not prose, they are verse.
Advanced users are users too!
Are you guys all forgeting the MS + Baystar connection? The leaked memo? That shit totally fucked SCO over, MS wants out badly. There are serious legal implications for MS if a investigation shows they directly or even indirectly funded this. At least now, the company can claim plausable deniabilty.
Next time they'll be smarter though. The plan now is for SCO to back out before the GPL is held up in US court and for someone else to come in and carry the FUD torch against Linux. Its probably going to suit patent related.
SCO is a model for everything that is wrong in the legal system of the US. It is fortunate that they are here, to point out problems, which may or may not need to be fixed. Where does freedom to take people to court end and where does throwing out stupid cases begin?
A long long time ago
Darl can still remember
When Unix(tm) used to make him smile...
And he knew that in a few weeks
That he would sue those Linux(tm) geeks
And maybe prop the stock up for a while...
But IBM just wouldn't shiver
The AIX code they wouldn't deliver
Bad news on the newsrack
BayStar wants their cash back
I don't remember getting sad
When I heard how their stock crashed so bad
But I was laughing and oh so glad
The Day The SCO Group Died...
So we were singing
Bye, bye, Mr. Darl McBride...
The only reason we have the rights we have is that people just like us died to gain those rights. -- Cheerio Boy
Actually, it's in court right now - see the article from a couple days back. A judge issued an injunction based on a GPL violation.
Will Bill G and his army of monkeys melt?
I guess this is going biblical on their asses?
Me, personally, I'd rather see someone show up with some pipe-hitting niggers to go medieval on their ass, but that's just me.
(Not racial, props to Tarintino)
Truth isn't Truth - Guliani
You rule! .mp3 and post it...
Seen your handle on GL;
you should find someone with a voice to do a
Remember: Yankee doodle helped win the revolution.
Truth isn't Truth - Guliani
M$ isn't going away, after this.
We lose the Twits who were so laughable in their folly that you knew they couldnt succeed, and what do we gain?
A different attack, more reasoned, less easily brushed aside.
And these fools have kept things uncertain for a year with totally unsubstantiated BS.
The Next attack will be patant based, tieing things up even further.
This doesnt help, unless we can reveal the M$ angle, and get sanctions.
Truth isn't Truth - Guliani
shorting means that you borrow someone's stock
I don't understand. Why would someone lend their stocks ? What benefit does the lender get ?
Because this while scheme REEKS of the kind of goofy crap that group pulls. I am sorry to have to put it in those terms, but the way this thing is going, it is almost cliche' Scientology legal bogosity.
BayStar provided $20 million of the financing involved in the A series (later A-1 series) preferred stock deal, though the 20,000 shares figure is correct. Royal Bank of Canada provided the other $30 million, and apparently hasn't made a decicion on how to react yet. SCO, as usual, is trying to play the bad news down, claiming they didn't breach the agreement. In a truely odd twist of this mess, they're claiming Baystar didn't "specifically" identify the breach(es) involved. Sounds like a case of hoist on your own petard to me....
Sigh.... You guys are all missing the point. I will make some predictions. See if they don't come true.
1) SCO Agrees to buy back Baystar's shares.
2) SCO Investors launch class action lawsuite against SCO
3) SCO declares bankrupcy
4) Darl McBride nevers sells *any* stock options for SCO
5) All lawsuits are dropped against the now non-entity previously know as SCO
6) Microsoft uses the publicity to lobby the government to create laws restricting "unfair trade practices" of "free" software.
7) Six months after the fall of SCO, Darl McBride is hired by some Microsoft/Paul Allen connected corporate entity and given a large signing bonus.
Gee... Hardly even needed my tinfoil hat for that...
Oh sure, you laugh that anyone could get fooled by a 127.0.0.1 address, but way-back-when, it really happened.
One line blog. I hear that they're called Twitters now.
Man, get a life.
Jeeeez.
IANAL but write like a drunk one.
Did you write the dragon book,
and do you think Darl is a crook?
if Mr. Torvalds tells you so...
and do you believe in text consoles,
can coding save your mortal soul
and can you teach me how to write a troll?
Well I know that you're in leauge with him
cuz I saw you writing notes in vim
when I was reading the news
about which people Darl sues,
I was a lonely teenage larval hack
with a pimply face and a server rack
but proud of my DoS attack,
the day, The SCO Group, died.
I started singin...
[CHORUS]
pb Reply or e-mail; don't vaguely moderate.