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SCO Stock Continues Downward Spiral
tobiasly writes "TechNewsWorld reports that three and a half years after SCO saw its stock price increase tenfold to US$20.50 following the filing of its lawsuit against IBM, it closed Tuesday at US$2.28 per share, or two cents less than where it was before the lawsuit. This follows a sustained slide fed by poor earnings results and courthouse reversals which, according to OSDL CEO Stuart Cohen, shows that 'Linux and open source software are bigger than any one company. Linux has won in the courts and is winning in the marketplace.'"
* Opinder Bawa has one filing for having sold 15,000 shares, and another for 8,000 shares. He would appear to have sold all the shares he possesses (but he still has a lot of options).
* Robert Bench has three filings: 7000 shares, 5000 shares, and 4100 shares.
* Jeff Hunsaker sold 5000 shares at the beginning of June.
* Darl McBride sold 7000 shares just after the suit was filed.
That's millions of dollars in stock sales. Given that the stock price skyrocketed when they announced the lawsuit, and the executive stock dumping began shortly thereafter, what do you make of this situation?
Push Button, Receive Bacon
The reference price of $2.30 was in March *2003*, after the reverse split.
Time is running out for SCO. Check the scheduling order. We're past the stalling of pretrial discovery. We're past wondering if SCO has some surprise evidence. Discovery is over. Now things speed up. Expert reports are coming in now and end on September 22. On September 25, summary judgement motions start, and undoubtedly IBM will make some. Things can only get worse for SCO in the summary judgement phase, where some or all of SCO's case may be thrown out and IBM might win on some of their counterclaims. This whole thing could end in September.
If not, trial starts in February 2007.
If somebody were to purchase the company, they'd acquire its liabilities, too. Pending lawsuits with Novell, IBM, RedHat, AutoZone, as well as many more potential ones. These claims and counterclaims don't just "go away" if the company changes hands.
Liquidation is the only solution.