SCO: Has the big slide started ?

[link|http://www.fool.com/News/mft/2004/mft04030310.htm|SCO Digs a Deeper Hole].

It's my opinion that SCO is doing everything wrong. In addition to the horrific, self-inflicted damage to its reputation, the licensing-lawsuit strategy is delivering a one-two punch to SCO's bottom line. Efforts to license Linux cost SCO $3.4 million in the first quarter. That's right, one-third of total revenue was wiped out. The payback? Twenty thousand dollars. That's not a typo. I know guys who make that much mowing lawns for a summer. Moreover, the balance sheet already currently lists $8 million in liabilities to legal firms. That number is likely to increase with the company's new lawsuit against AutoZone (NYSE: AZO).

With declining revenues, increasing losses, and an expensive and damaging litigation policy, SCO looks like one of the best short candidates I've seen in a while.

Post #144,481 by dmarker 3/4/04 4:06:15 PM Reply	SCO: Has the big slide started ? Following their stock performance over the past 12 months. [link\|http://www.quicken.com/investments/charts/?period=1YEAR&charttype=HIST&big=off&plot=LINE&othersym=&mavg=&dji=&sp500=&nasdaq=&p=SCOX\|http://www.quicken.c...0=&nasdaq=&p=SCOX] In March last year their stock was just over $1.6 6 months later in Sept after the IBM filing They hit $21. A particularly spectacular growth. Today they dropped to 11.60. And their stock perf chart shows a steady decline that can only get worse. Now if anyone is into mild gambling. Shorting SCOX has to be a 'secure' bet. Doug Marker
Post #144,487 by a6l6e6x 3/4/04 5:34:02 PM Reply	The Motley Fool on SCO. [link\|http://www.fool.com/News/mft/2004/mft04030310.htm\|SCO Digs a Deeper Hole]. It's my opinion that SCO is doing everything wrong. In addition to the horrific, self-inflicted damage to its reputation, the licensing-lawsuit strategy is delivering a one-two punch to SCO's bottom line. Efforts to license Linux cost SCO $3.4 million in the first quarter. That's right, one-third of total revenue was wiped out. The payback? Twenty thousand dollars. That's not a typo. I know guys who make that much mowing lawns for a summer. Moreover, the balance sheet already currently lists $8 million in liabilities to legal firms. That number is likely to increase with the company's new lawsuit against AutoZone (NYSE: AZO). With declining revenues, increasing losses, and an expensive and damaging litigation policy, SCO looks like one of the best short candidates I've seen in a while. Alex Necessity is the plea for every infringement of human freedom ... the argument of tyrants ... the creed of slaves. -- William Pitt, addressing the British House of Commons (1783)
Post #144,506 by admin 3/4/04 7:05:37 PM Reply	Try finding some shares to short, though. Regards, -scott anderson "Welcome to Rivendell, Mr. Anderson..."

Welcome to IWETHEY!