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.'"

Comments

so where's the SEC investigation?

[macadamia_harold]

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.

Where's the SEC investigation of the SCO executives? At this point, there's plenty of evidence that this entire IBM lawsuit was a pump-and-dump scheme. What's the deal?

Re:so where's the SEC investigation?

[Mathness]

At this point, there's plenty of evidence that this entire IBM lawsuit was a pump-and-dump scheme.
I will bite, where is that evidence then? All I see is people claiming it to be pump and dump.
Selling stock when it is sudden worth ten times as much (who wouldn't?) isn't evidence of pump and dump. Given the context it can of course be suspicious.
If you accuse without any proof, you will just be doing what SCO have done for so long.

bowl circler

[hedley]

Looks ready to auger in. Nice profit for the shorts on this one. When would you cover this one? There may be residual value at some point (office space, chairs etc). 20.5->0.25 or so would be my guess of maximal profit.

Bring it on. I think they should rename themselves Icarus Operation

H.

Net Worth

[mlarios]

At this point, how much is the company even worth?

Re:Net Worth

[Stormwatch]

So they're like that guy who's willing to spend a million to squash RIAA's blackmail scheme rather than bow and pay those scumbags a couple thousand. If more people had such cojones, the world would be a better place!

Open Source bigger than Microsoft? Or just SCO?

[jkrise]

"It 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. SCO . . . is dead."

I think the victory is bigger than just the downfall of SCO. This shows that any number of Closed Source companies, working in concert / collusion / tandem... have lost to one single man - Richard Stallman, and his GPL. It is the GPL which has tightened the noose around SCO, completely puncturing the SCO case, since they themselves were offering the 'infringing code' under the GPL. Linux and Linus Torvalds are merely incidental, given the magnitude of the victory we are seeing now... in fact, Linus was hardly involved in the case at all.

This is not just IBM vs SCO. Let's remember even IBM is not entirely behind Open Source, they have patents and interests in the Closed Source arena as well. In the ordinary world, if IBM wins vs SCO, they would control the entire Linux market, but because of the GPL, the entire Open Source community wins! In fact, this squarely places the spotlight on IBM now, specially since Lenovo is pre-loading Linux. Will IBM abandon their entire Closed Source strategy, and become the Google of the Services segment, in a truly Open Source way? Time will tell...

Companies like Microsoft, Apple, Adobe, Sun, Oracle etc. are losing. Try hard they may, but they have failed to negatively affect the marketshare and mindshare of Open Source products and the philosophy behind it. The day is not far off when Apple and MS are quoted below $1. On that day, the victory will be complete.

Re:Cohen talks bullshit

[kfg]

know that "Linux is the best OS for my computer" doesn't sound as fancy. But hey, *that* is what I need, so which user cares about marketshare ?

This isn't about marketshare. The lawsuit is about one the things that makes Linux the best OS for your computer; it is resilient to attacks trying to take it away from you. SCO's declining stock value is due to public perception that SCO bet the farm on breaking that resilience; and lost.

KFG

The last bit is bullshit

[Anonymous Coward]

Linux has won in the courts and is winning in the marketplace.

Linux has not won in the courts. IBM is doing well against SCO - but it isn't over till it's over, and the lawsuit could go on for another year, at least. Trial is currently scheduled for 2007.

Linux is not winning in the marketplace. Microsoft is winning in the marketplace, it has about 10 times as big a market share as Linux, last time I looked.

Don't misunderstand me - I'm a big Linux fan, and I'm posting this from my Debian Etch system, which is connected to the Internet thru my Debian Sarge firewall. But you don't win by deluding yourself that the enemy has lost, when in fact it is very far from losing.

Analyst's comment missing

[Laura_DilDio]

Where's the Yankee Group? Where's the fathead Laura DiDio? She's been the official SCO Fan-girl from the start. I guess monkey-boy Ballmer didn't command her to make any comments at this time.

Re:Cohen talks bullshit

[dbIII]

Linux didn't win ANYTHING.

Neither did SCO as a company - but Darl McBride and his brother who is pulling in HUGE fees on the legal team are doing very well financially out of this. SCO will be sucked dry and Darl will move on to his next victim - with the reputation of being a "hard hitter" that would have won if it wasn't for those pesky kids and their penguin. Expect to see him in the news again later on - and hopefully some jail time if people are paying more attention in a later scam.

Re:Is this overrated?

[Anonymous Coward]

It's overrated because the moderator modded it down because he disagrees, but knew he'd get slapped in meta-mod if he used one of the negative tags. The good news is that using overrated or underrated incurs a karma penalty. Posting AC to avoid being modded offtopic by some self-righteous twit.