Nasdaq to Delist SCO Sep 27

symbolset writes "The Nasdaq Staff has decided to delist SCO at open of business on September 27, 2007 under their discretionary authority and as a result of SCO filing for Chapter 11 bankruptcy protection. SCO can get a hearing but "There can be no assurance that the panel will grant the Company's request for continued listing.""

Comments

Good time for raises, too!

[Just Some Guy]

From their Form 8-K filing:

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. On September 13, 2007, the Board of Directors (the "Board") of The SCO Group, Inc. (the "Company"), approved an increase in the base salary of Ryan E. Tibbitts. Mr. Tibbitts' base salary will be increased from $160,000 per year to $210,000 per year, effective as of September 3, 2007. In recognition of the significant contributions Mr. Tibbitts has made to the Company, the Board also approved a discretionary bonus of $50,000, net of taxes, to be paid to Mr. Tibbitts.

Why yes, yes, this seems like a splendid time to start giving out raises.

I'm pretty ignorant of finance and law, but is there any reason whatsoever for the stockholders not to sue the board into destitution at this point?

Re:Good time for raises, too!

[j. andrew rogers]

The "pay raise" is a bribe by the board for key executives to not jump ship. It is a common pattern when companies are in trouble to put golden handcuffs on key people to keep them around to see the trouble through to the end rather than leaving for better climes with fewer risks. If you think about it, it makes a certain amount of economic sense.

Snowed By SCO

[truckaxle]

From this article

http://www.forbes.com/2007/09/19/software-linux-lawsuits-tech-oped-cx_dl_0919lyons.html

Daniel Lyons has some choice quotes

"I reported what they said. Turns out I was getting played. They never produced a smoking gun."

and

"It is simply this: I got it wrong. The nerds got it right."

Not often you find a journalist reporting on their failure of foresight. Daniel gained a few points in my book.

Re:What happens?

[mr_mischief]

What happens if I maintain a short position in a stock that is delisted and declares bankruptcy? says you have pure profit, basically.

I'm guessing you know about covering dividends, one-time special payments, and the like to the long holder. Short selling is fraught with danger, but boy can't it be handy?

Re:This is really bad news for me.

[Dunbal]

Shorting is simply selling what you don't have. Stock certificates are just pieces of paper. And your broker probably has a huge inventory of stock in his portfolio. So when you "short" something you are basically telling your broker that you agree to sell a stock that you don't own. There's no problem with this, since there are rigid mechanisms in place (today) to avoid fraud.

If you sell stock you don't own you HAVE to buy it back OR make good the monetary difference at some point in the future.

So let's say you "short" 100 shares of SCO when it is at $10 a share (yeah right). Your broker deposits $1000 in your account and records your sale. He may or may not have to adjust his own share inventory at this point, but as far as you are concerned you just "made" $1000.

Now if the price goes up, say to $15 per share, it would cost you $1500 to buy those 100 shares back. If you have plenty of money in your investment account your broker will just let it slide. But if you run out of credit (ie you don't have more than $1500), your broker will oblige you to buy back the stock, since he no longer has any assurance that you will be able to pay if the stock keeps going up. This is how you get screwed with short sales.

On the other hand, if the stock goes DOWN, say to $5 a share, then you are laughing, because once you decide to "cash in" on your investment, you "buy back" the 100 shares you sold at the current price of $500 ($5 per share). That means you pay $500 out of your account. But remember that your broker has already put $1000 in your account from the short sale you made earlier. So you've earned the balance - $1000 you were given for "selling" the stock short, less $500 to "buy back" the stock and close your commitment with your broker leaves you a profit of $500.

This is a bit off-topic but I felt like writing. Hopefully you understand "short" selling now. Just remember that ALL stocks tend to RISE in value over time (unless there's something REALLY wrong with the company/sector/economy). It's not easy to make money by selling short, but when you spot a stock that is ridiculously overvalued, well, what goes up must also come down at some point. Judging when to buy and when to sell is what makes the difference between people who lose on Wall St. and people who win. And remember, if it was easy, everyone would be rich.

Re:hmm

[nmb3000]

That's an interesting tidbit- where did you find the list of the oldest domains?

Not sure about it's source, but here's one a lot of people reference: http://theforrester.wordpress.com/2007/08/13/the-100-oldest-domains-on-the-internet/. Here's the list for the click-impaired:

(Note that here SCO is listed at #88. Domains registered on the same day are presented in random order so SCO.COM may indeed be 86. Also, sorry for the stupid formatting, bloody lameness filter).

1. 15-Mar-1985 SYMBOLICS.COM
2. 24-Apr-1985 BBN.COM
3. 24-May-1985 THINK.COM
4. 11-Jul-1985 MCC.COM
5. 30-Sep-1985 DEC.COM
6. 07-Nov-1985 NORTHROP.COM
7. 09-Jan-1986 XEROX.COM
8. 17-Jan-1986 SRI.COM
9. 03-Mar-1986 HP.COM
10. 05-Mar-1986 BELLCORE.COM
11. 19-Mar-1986 IBM.COM
12. 19-Mar-1986 SUN.COM
13. 25-Mar-1986 INTEL.COM
14. 25-Mar-1986 TI.COM
15. 25-Apr-1986 ATT.COM
16. 08-May-1986 GMR.COM
17. 08-May-1986 TEK.COM
18. 10-Jul-1986 FMC.COM
19. 10-Jul-1986 UB.COM
20. 05-Aug-1986 BELL-ATL.COM
21. 05-Aug-1986 GE.COM
22. 05-Aug-1986 GREBYN.COM
23. 05-Aug-1986 ISC.COM
24. 05-Aug-1986 NSC.COM
25. 05-Aug-1986 STARGATE.COM
26. 02-Sep-1986 BOEING.COM
27. 18-Sep-1986 ITCORP.COM
28. 29-Sep-1986 SIEMENS.COM
29. 18-Oct-1986 PYRAMID.COM
30. 27-Oct-1986 ALPHACDC.COM
31. 27-Oct-1986 BDM.COM
32. 27-Oct-1986 FLUKE.COM
33. 27-Oct-1986 INMET.COM
34. 27-Oct-1986 KESMAI.COM
35. 7-Oct-1986 MENTOR.COM
36. 7-Oct-1986 NEC.COM
37. 27-Oct-1986 RAY.COM
38. 27-Oct-1986 ROSEMOUNT.COM
39. 27-Oct-1986 VORTEX.COM
40. 05-Nov-1986 ALCOA.COM
41. 05-Nov-1986 GTE.COM
42. 17-Nov-1986 ADOBE.COM
43. 17-Nov-1986 AMD.COM
44. 17-Nov-1986 DAS.COM
45. 17-Nov-1986 DATA-IO.COM
46. 17-Nov-1986 OCTOPUS.COM
47. 17-Nov-1986 PORTAL.COM
48. 17-Nov-1986 TELTONE.COM
49. 11-Dec-1986 3COM.COM
50. 11-Dec-1986 AMDAHL.COM
51. 11-Dec-1986 CCUR.COM
52. 11-Dec-1986 CI.COM
53. 11-Dec-1986 CONVERGENT.COM
54. 11-Dec-1986 DG.COM
55. 11-Dec-1986 PEREGRINE.COM
56. 11-Dec-1986 QUAD.COM
57. 11-Dec-1986 SQ.COM
58. 11-Dec-1986 TANDY.COM
59. 11-Dec-1986 TTI.COM
60. 11-Dec-1986 UNISYS.COM
61. 19-Jan-1987 CGI.COM
62. 19-Jan-1987 CTS.COM
63. 19-Jan-1987 SPDCC.COM
64. 19-Feb-1987 APPLE.COM
65. 04-Mar-1987 NMA.COM
66. 04-Mar-1987 PRIME.COM
67. 04-Apr-1987 PHILIPS.COM
68. 23-Apr-1987 DATACUBE.COM
69. 23-Apr-1987 KAI.COM