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SCO Stock In Danger of Delisting, Again
hweimer writes "In 2005, SCO got into delisting trouble because they failed to file their annual 10-K report in a timely manner. SCO seems to be headed the same way again for a different reason: the stock price is too low to meet Nasdaq's requirements. Quoting: '[W]hat can a company do to boost its share price? Besides stopping to burn money and come up with a working business model, I mean.'"
Many companies buy back their own shares, both to boost share price and to give stockholders a return not based on dividends. I don't know if SCO has the cash to do it any more, but...
When your business model depends upon litigation, and you have no one else to sue. What do you expect to happen?
K
Do a 2:1 or 3:1 reverse split to bring the price back over the listing requirement. It would keep them in the game but would probably accelerate the collapse of the company.
There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
Urgent message to Uncle Bill and Uncle Steve, Please stop throwing chairs and throw some money for us. Yours SCO
sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
The thing companies do: Bring in a new CEO that can raise a large amount of cash to float the company. Remember, companies don't have to be profitable anymore, they just need enough investors to pay the bills.
Think of all the money in legal fees they have blown in the past decade or so. Imagine what good could have been done if they had invested that money back into their company.
In a world of acronyms, the words are the real victims.
The reason why it did not delist before is that MS still needed them. Vista is now out and MS has more patents. At this time, I doubt that MS cares. It will delist shortly.
I prefer the "u" in honour as it seems to be missing these days.
What's the problem, they got already replaced by Novell :'-(
Big deal. The way SCO is burning through money, it'll be in bankruptcy by the end of the year anyway. Earlier, if Novell gets its way and gets the Microsoft and Sun licence money put into trust.
You're an idiot.
A UNIX insider? That makes you sound worse than an idiot.
and you only have a single bucket. How do you stop the ship from sinking?
The answer? You don't. It's useless to try to stop the inevitable.
A reverse split will keep them from being delisted, and they could quietly list it in their late 10K filing, but the market almost never reacts kindly to reverse splits,just look at AT&T and Lucent, both hammered by the street after reverse splits. I speculate that if they do this, it is the final nail in the coffin for SCO a stock doesn't trade under a dollar unless there are serious financial problems, a reverse split would simply confirm that management feels that the end is near.
K
..so the business model is the lawsuit.
Didn't the law firm that's running the case basically get handed the store as their legal fee? I'm not exactly sure of the details, and I can't do much checking right now since I'm about to run out, but that was my impression.
"[W]hat can a company do to boost its share price? Besides stopping to burn money and come up with a working business model, I mean."
Well, how about a reverse stock split?
"Reverse stock split [...] a reduction in number of shares and an accompanying increase in the share price. The ratio is also reversed: 1-for-2, or 1-for-3."
Of course, the company wouldn't become worth any more money, but the share price would go up.
"Goodness me, how unlike the FBI to abuse the trust of the American public." -- The Onion
Back it up with proof, and quit hiding behind the anonymous coward.
Otherwise, you're just another SCO troll.
I'm something of a UNIX insider, and I can tell you that SCO is on to something [...]
Hold him back, he's desperate.
There is a real possibility thet SCO might get wound up. How is it likely that Darl McBride will reap these millions SCO gets wound up? It has been the same story for CEOs.
I for one happily say goodbye to our former open-source hating overlords!
Well, back to rejecting software patent applications.
[in Gest]Then who will be the sole owner of Unix and all things Unix, looks like Unix has an X in its name, used by a guy who knows what Unix is...?[/in Gest]
If something is so important that you feel the need to post it on the internet... It probably isn't that important.
Lawyers, Guns and Money
Well, I went home with the waitress
The way I always do
How was I to know
She was with the Russians, too
I was gambling in Havana
I took a little risk
Send lawyers, guns and money
Dad, get me out of this
I'm the innocent bystander
Somehow I got stuck
Between the rock and the hard place
And I'm down on my luck
And I'm down on my luck
And I'm down on my luck
Now I'm hiding in Honduras
I'm a desperate man
Send lawyers, guns and money
The shit has hit the fan
Send lawyers, guns and money...
Yeah, I can just see McBride in a prison jumpsuit saying "I'm just an innocent bystander."
How about relisting on a different stock exchange. The place to do that these days is the AIM in London. Huge incentives for investors to invest. No minimum market cap. You don't even have to keep your shareholders regularly informed.
warning: The above content may test positive for sarcasm and/or could be a failed attempt at humor and as such should be taken with a pound of salt.
Sheesh, evil *and* a jerk. -- Jade
If SCO folds can IBM sue anyone to get its legal fees back? The assets of SCO might be slim pickings but it still has a huge liability outstanding. If the judge rules dismisses the suit with prejudice (hope that is the right term, IANAL) and SCO folds, where can IBM go to get its legal costs repaid?
sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
After 30 days of trading below $1., they'll get a warning notice from NASDAQ. Then they have to trade above $1 for ten straight days out of the next 90, or get a second notice, and a second chance to get their stock above $1 for ten straight days.
What is *more* troublesome for the SCOundrels is that if they're under $1 on May 15, they're likely to be dropped from the Russell Microcap index, which would likely trigger a selloff from funds referencing it.
As much as this stock is being shorted by people waiting for the death plunge, either case may be enough to finally tip it over. And with the case obviously headed for oblivion, the likelihood of a Black Knight stepping in with bags o' money again is pretty slim.
SCOX DELENDA EST!!
Technology experts Dan Lyons and Maureen O'Gara were also on hand to bolster SCO's claims. "We've seen all the SCO materials and while its far to secret to disclose, there is no doubt in our minds that NASDAQ is actually a front for Groklaw."
If brevity is the soul of wit, then how does one explain Twitter?
SCO's share price woes are the shareholder's problem. If they're happy with the way the CEO is running the company then bully for them. If not, they can always sell and/or fire the CEO.
Deleted
What can a company do to boost its share price?
For SCO, off the top of my head I'd say fire Darl and turn over every last bit of his correspondence to the SEC. Then stop pursuing baseless lawsuits as a means of revenue. Shareholders are not interested in companies that play the lawyer lottery as a business plan. Finally, make a fucking product and sell it.
Weaselmancer
rediculous.
"According to our experts, Microsoft has stolen our code and put it into Windows. I have proof right here in my magical breifcase"
As other posters have pointed out, the best thing is a reverse stock split. Here's all SCO needs to do:
1) Deposit $5 in their corporate bank account (this is the important part). Maybe get a pool together and have everybody chip in a dime.
2) Initiate a 1-to-21,230,000 reverse stock split. That's right, let's get the company down to ONE SHARE, trading at around $20,000,000 per stub.
3) profi-- err, problem solved!
My blog
Don't write off SCO so quick - I'm something of a UNIX insider, and I can tell you that SCO is on to something with its ownership of cfront
Yeah, they've got another obsolete piece of software that nobody uses anymore. Because, you know, it's impossible to write an independent implementation of a language with merely a several hundred page ISO standard to work from.
"But someone from SCO claimed that they own C++"; is that not so? It's complete rubbish. -- Bjarne Stroustrup's FAQ
How soon till SCO stock is cheaper than toilet paper?
I'll meet you at the intersection of "Should be" and "Reality"
the SCO business model is simply the application of public relations and litigation to a large scale version of the business model employed by that crackhead cousin of yours that shows up at family functions from time to time looking for cash: getting paid to go away.
the sheer number of crackhead cousins in the united states is evidence that this is a viable business model.
sarcasm:
-noun
1. harsh or bitter derision or irony.
"I'm something of a UNIX insider, and I can tell you that SCO is on to something [...]"
... SCO is on something ..."
He's only out by two letters. It should read: "
I suggest sending out 400 million anonymous emails: SCO has announced priority production of devices based on its proprietary technology. Analysts indicate that there is "almost limitless demand for this revolutionary technology". XYZI is rated an immediate and "STRONG BUY".
Life needs more saving throws.
[W]hy did you put square braces around the W of [W]hat?
I don't see anything explicitly disallowing it, but rule 4310 says:------------------
2) Sensible answer:
OK, but what will they do next month?
It's true I tell you, feller at work's next door neighbour read it in the paper.
How about offering blow jobs for every share holder of record on a given date? Mr. McBride may be good at it for all I know.
He'd be violating the non-disclosure agreement, which says in part:
Agreement between SCO, Inc. and [redacted]:
The party of the second agrees not to disclose any of the lies he hears from the party of the first.
Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
Darl... is it you? again? You should stop drinking. Seriously.
Donde Ser Geek No Duele
Sue NASDAQ!
Most "respectable" stock exchanges have rules for a reason - to keep the riff-raff out.
Riff-raff are relegated to less-respected places like the OTC market and the Pink Sheets.
NASDAQ won't shed any tears over losing SCOX.
Remember folks, SCOX + Evil = SCOXE.
Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
Reverse split. Combine, say, 10 shares into 1. It is not too uncommon for companies suffering from low stock prices.
Groklaw has some legal eagles who can give you better answers than I can.
My guess is that unless they can "pierce the corporate veil" they'll be stuck in line with other unsecured creditors.
If they can pierce it then they can go after executives and maybe even the law firms or the individual lawyers. Even if they don't recover much, if the lawyers wind up holding the bag it will send a message to corporate land sharks everywhere: Don't participate in bogus lawsuits.
If you just want to punish the landsharks:
The judge can also sanction the lawyers directly, with the fines going to the court. Likewise, non-insider SCO shareholders who bought in before the suits were filed may have action against the lawyers for malpractice. Then there's the Utah bar association.....
Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
Reverse stock splits cost money -- expecially 1 for 3. They'll have to buy beck fractional shares.
It still only buys them a short reprieve. There's another limit they are close to hitting -- $20 million total market capitalization. A reverse split can help the price, but does nothing for Market Cap.
It's really just a matter of time. They might as well acept the delisting and not waste any prescious cash on it.
I have discovered a truly marvelous sig, unfortunately the sig limit is too small to contain i
My predictions:
Reverse split or bankruptcy within 6 months.
Reverse split or fake price-prop-up on May 14-15 to avert Russel delisting. If Russel will delist them anyways and the SCO execs know it, this may not happen.
Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
Simple. Pump out a billion of "cheap penny stocks NOW" spam mails.
This time even without the dreaded pump'n'dump.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
Im wasted....
Dear victim I am prince Uboogkio from Nigeria and my friend I need your help for my Tribal leader King Uboogkio has invested in a firm called Sco who has also been invested in by big companies like Baystar and Microsoft and a lady called Maureen. King Uboogkio personally knows a MR Darl MCBRIDE as being an amazing bisiness man. I need more money and since Sco is where 'IT' is going on Nasdaq I guarantee you dear victim 50% of all of the shares I hold personally and and the King shareholding. To help me and you be RICH BEYOND YOUR WILDEST DREAMS I need 1. a copy of your passport 2. $10000 us dollars 3. a telephone number Please email me so i tell you more My best (praise be to Jesus and Allah) Steve (prince) Uboogkio email me sco.getrichnow@uboogkio.ng Our village awaits news as we are about to sell some children to slave owners - this should inform you on how keen we are on Sco shares.OK That should do it
Original was
... what
what
submitter said
What
This requires using brackets.
Submitter could have said
but
[W]hat
is shorter.
Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
There are still enough shares outstanding in the public float for a few more reverse splits. 2:1 reverse would take price to $1.88 leaving approximately 7.8 million public shares; 3:1 reverse to $2.82 and 5.6 million pubilc shares; 4:1 reverse to $3.76 and 3.9 million shares. For the requirements listed on page 14 of listing requirements (http://www.nasdaq.com/about/nasdaq_listing_req_fe es.pdf - PDF warning) the first is only being met with stockholder's equity (which is about $8 million). The second and third (publicly-held shares and market value of said shares) are in no danger of dropping below listing requirements. SCOX shouldn't be in danger of being delisted but their only option may be a reverse split since a buyback would not only drain cash reserves but also lower shareholder equity, which must be at a minimum of $2.5 million or else the stock gets a delisting notice yet again.
Two reasons not to use SCO stock for TP:
1. Paper cuts.
2. Already full of "stuff".
SCO is being counter sued by IBM and Novell. They could try to settle, but IBM is suing for Lantham act violations (where you can go after officers of the company!) and Novell is asking for $25 mil they feel they are owed. If they smell blood they are unlikely to settle for anything less than SCO being extinguished. Sco's only hope is some sort of miracle where they win a pyrrhic victory.
The world is made by those who show up for the job.
* Wait for someone to sue someone else /. and wait for the /.'ers to follow your link
* Wait for it to go badly
* Post to your blog about them needing a new business model
* Post to
* Profit!
Maybe Señor Blogger needs a new business model too.
warning: The above content may test positive for sarcasm and/or could be a failed attempt at humor and as such should be taken with a pound of salt.
Yay, modded flamebait.
Some SCO trolls must have mod points.
This is a problem faced by many company. The solution is a reverse split. This is just a stock split in reverse.
In a stock split, your 1 share becomes maybe 10 shares. That share which was selling for $100 is now 10 shares each selling for $10 (note: I didn't say worth, when it comes to stocks price and worth are two different things).
In a reverse split, your 10 shares become 1 share. That share which was selling for $1.00 is now 1/10 of a share selling for $10.00.
BTW, given the importance of corporations and equity compensation in the tech industry, it would be worth making sure you have at least a 101 level of education in this area.
Yours,
Jordan
All this guy's blog says is that SCO *could* get delisted if they don't keep their stock price above $1. SCO hasn't received any Letter of Deficiency from NASDAQ, and once they get one, they have six months to correct it, so none of this is actually threatening to happen anytime extremely soon. All in all, a very content-free post for anyone who's followed the SCO litigation in the slightest.
Done with slashdot, done with nerds, getting a life.
I would like to see SCO bite the big one AFTER they get annihilated in the courts. I don't want anyone to be able to say that the SCO case had merit and "If only they hadn't run out of money before winning."
I also believe that just crushing SCO the corporation isn't sufficient. There are people who made buckets of money because of the litigation strategy. No one should profit by leading a company down a slimy destructive path. For the sake of stockholders everywhere I hope the people responsible are held accountable.
The race isn't always to the swift... but that's the way to bet!
People post stories to Slashdot hoping to draw readers to their site. Shocking!
Patrick Doyle
I mod down every jackass who puts his moderation policy in his sig. Oh, wait a sec....
SCO is not in the position to buy back their shares but they do have a very simple option, a reverse split. Although it isn't common and often has a negative effect on the market capitalization of a firm because it is a sign of weakness in the market it will have the needed results. It is quite simple to do, legal, and only requires the board of directors to execute. Shareholders don't even have to agree, although most would if it means the difference between being listed or going the way of an OTC stock.
You are 100% correct. They will most certainly do a reverse split. On March 14, 2002 they did a 1 for 4 reverse split. I would guess a similar 1 for 4 or even 1 for 5 split just to buy them some time. Since so many people are still convinced that this stock has some value based on its non-zero price, I doubt that a reverse split will hurt much. Those who wanted to get out have already done so and the hard core people who think SCOX might have a case will hang on until the very bitter end. A reverse split will prop up SCOX enough that they can avoid delisting and apparently limp along in their business for another couple of years perhaps.
...it did come from the "pennies" department.
The SCOundrels have three active cases that can sink them: the critical one for them to dodge right now is the Novell case, which would determine whether or not SCOX actually holds the UNIX copyrights they're trying to leverage against IBM. If they lose that, the IBM case effectively becomes moot, since they don't have the standing to bring the suit. Also the trust Novell is seeking against SCOX' current assets for unpaid SysV royalties would gut them at once.
Losing the Novell case would also make Red Hat's Lanham Act case (business interference) a slam-dunk since they would have had no standing to accuse Red Hat to start with. The collection of dubious accusations they've made since '03 is about to come around and bite them squarely in the gonads.
SCOX DELENDA EST!!
Hey everybody, PaRtY at my place!!!!!!!!!1
Oh, wait..
--- The American Way of Life is not a birthright. Hell, it's not even sustainable.
That is a question I want answered.
I would have sold it off the second they started suing their customer base.
One thing I am going to be watching is where McBride goes after SCO eats itself.
A warning to any company that hires this guy.
I won't buy your products, if a customer of mine is using your products they won't for very long.
McBride=Blacklisted from the computer industry.
If the guy gets a different job in a different industry, more power to him.
-Hack
Got Geometrodynamics? Awe, too hard to figure out? Too bad.
Well, for us us who don't really understand much of the stock market Google Finance offers a neat und simple chart system to look at the market lines. Here's one for SCO. I found the period between 29th of November 2006 and 1st of December 2006 especially interesting... can anyone say 50% value drop? Also its amazing to see how the stock started off at 94$ per share...
+++ MELON MELON MELON +++ Out of Cheese Error +++ redo from start +++
The only check that Darl's going to get is a body cavity check on his way into Federal-Pound-Me-In-The-Ass prison.
I only see two possible outcomes:
1) SCO loses their lawsuits. They then go bankrupt, and avoiding delisting now isn't going to make a whit of difference.
2) SCO wins the legal war. Although it seems unlikely, it is only this possibility that makes buying the stock make any sense at all. After winning, they should have enough money to get relisted easily, if they want to.
a,e,i,o,u and sometimes w and y (at be if of up cwm by)
Sounds like NOW is the time to BUY BUY BUY! They're going to teh moon when they pull the copyright transferrence papers outta Blepp's briefcase and shock the world!
I looked over the NASDAQ continued listing requirements (page 5), and it looks like SCOX is doomed no matter what. The very first requirement is that stockholders' equity must be above $10M. According to SCOX's latest balance sheet, the stockholders' equity was $8.082M as of October 31, 2006. There is every reason to expect that it only went downhill from there.
___
If you think big enough, you'll never have to do it.
Why should SCOX fears delisting at this stage?
If they want to stop it, they only need to buy
their own shares for $10000-$20000 once a month
since the trading volume is totally insignificant.
The shareholders still left are the original
extortionists with Ralph Yarro (34%) at the helm.
Or investors groups that were willing to support
the scheme. They are not trading, and there are
no new investors.
Delisting would do away with the embarrassing
quarterly reports.
SCO what? Their stock SCOX.
Something that most people seem to be missing is that, according to Investopedia, the 30-days-below-one-dollar rule means 30 business days and it isn't just the closing price, if the stock trades above $1 in intraday trading, that's enough to satisfy the rule.
As of market closing today, they've traded below $1 for 21 consecutive business days. That means they have almost two full weeks before they could hit that 30-day trigger. The stock has been climbing slowly the last few days and there's at least some chance the interested parties will successfully paint it over $1 before it's too late.
If April 27th arrives and they haven't made it over a dollar, though, a reverse-split is probably their only hope (barring some magical court rulings in their favor) since the stigma of receiving that warning could shake what little confidence investors have left making it all but impossible to get over a buck for the ten consecutive days required.
You can't make a full-time living harassing Linux users and persecuting companies for using Linux! It only works for about 15 years, then you have to start thinking about a viable business model.
I guess it's time for the anti-Linux persecution to switch to straight terrorism. The only problem now is getting a partnership with al Queda. Fortunately, the FUD is so thick that it won't be difficult convincing them that Linux is a bigger threat than capitalism.
When can LUGs expect the first car bomb?
...out on the market so that a group might get them at this cheap price, then have a controlling interest? If so, they could fire the board, move away from Utah and the cooties associated with it (sorry, but it is true), run new "with it" management, and maybe make a nice open source company out of it. They could start by GPLing everything that SCO owns right now (not FUD owns, really owns).
I have received numerous stock tips lately in my e-mail, and other tips, and advice on other products that I really think SCO should know about. I haven't found Darl's e-mail address in order to refer him to these tips, but I have found others...I'm sure they'll be very pleased:-)
As soon as the certificates become less expensive than toilet paper...
The race isn't always to the swift... but that's the way to bet!
I saw a talking head on NBR recommending buying SCO. Been awhile, don't remember and searches don't reveal who it was. But I would like to know so I can keep an eye out for his other recommendadtions.