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SCO's hometown paper sees bad things coming
Aug. 02, 2006

SCO's Linux and IBM lawsuits haven't been going well, and the stock market's beginning to notice. SCO's hometown newspaper, the Salt Lake City Tribune, notes that SCO's stock has fallen from its October 2003 high of $20.50 per share to an August 1 close of $2.28.

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It's actually far, far worse than that. In May 2002, before SCO launched its lawsuit against IBM, the company had a 4-to-1 reverse stock split. In other words, every four shares of existing Caldera stock were converted into one share, Therefore, if you owned Caldera stock in April 2002, your current shares are worth an all-time low of about 57 cents a share.

No one who owned shares in the beleaguered Unix company went on record with their thoughts about the company's future business prospects.

The analysts that SLC Tribune business reporter Bob Mims spoke to, for his story, saw almost no reason to believe things will get better. The continuing decline of the Intel Unix business, former SCO software partners moving to Linux, and its lousy legal record were all cited as reasons for SCO's dismal market performance.

Ironically, one analyst that Mims spoke with, Gordon Haff of Illuminata, thinks that SCO's protracted legal battle over Linux may actually have helped Linux's market acceptance.

If the courts don't put an end to SCO, it appears that the market might do the job for them. Still, since the majority stockholder, Ralph Yarro, is also the chairman of SCO's board, SCO may still keep trying to march on so long as Yarro has the stomach for the company's continued red-ink bleeding.


-- Steven J. Vaughan-Nichols



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