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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
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
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.
Back it up with proof, and quit hiding behind the anonymous coward.
Otherwise, you're just another SCO troll.
It's true I tell you, feller at work's next door neighbour read it in the paper.
I'm something of a UNIX insider, and I can tell you that SCO is on to something [...]
Hold him back, he's desperate.
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?
"According to our experts, Microsoft has stolen our code and put it into Windows. I have proof right here in my magical breifcase"
My blog
NASDAQ also has a minimum regarding the market value of the company and that is set to $5 million which means that they can't continue doing reverse splits ad infinitum. Current market value of SCOX is just shy of $20 million.
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.
That would make their trading symbol
SCOXD
for 20 days.
I know I'd smile every time I saw it.
"Hey hey, guy, buy shares of SCO! XD"
More Twoson than Cupertino
"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.
would probably accelerate the collapse of the company.
You say that like it's a bad thing...
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
Here's what happens:
1) Novell gets Unix back.
2) Novell does deal with Microsoft.
3) Novell changes name to SCO.
4) Novell (i.e. SCO) stops SuSE.
5) Novell (SCO) sues IBM.
6) Prifit!
return 0; }
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.
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....