Post #283,293
4/28/07 1:35:45 PM
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SCO gets delisting notice
[link|http://www.groklaw.net/article.php?story=20070427185116413|Groklaw] Nasdaq, as expected, has sent SCO a letter, which it has filed in an 8K with the SEC. The important bit is this:
On April 23, 2007, The SCO Group, Inc. (the \ufffdCompany\ufffd) received a letter from The Nasdaq Stock Market (\ufffdNasdaq\ufffd) indicating that the bid price of its common stock for the last 30 consecutive business days had closed below the minimum $1.00 per share required for continued listing under Nasdaq Marketplace Rule 4310(c)(4). Pursuant to Nasdaq Marketplace Rule 4310(c)(8)(D), the Company has been provided an initial period of 180 calendar days, or until October 22, 2007, to regain compliance.
This is the second such letter, but the first one due to stock price. Here are the Nasdaq rules [PDF], which I remembered from an earlier article dating from the last time SCO got a notice, and a chart for the last five days, since the receipt of the notice, with the arrow pointing the wrong direction, it seems to these non-expert eyes. Reverse split is the obvious solution. There is enough SCO stock out there that they could do a 2-1 or a 3-1 split and still have well over the minimum amount of stock allowed. Still, that the stock has been sitting that low for that long and shows no signs of going up on it's own indicates that a clue about SCO's real chances of winning has sunk in. Jay
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Post #283,305
4/29/07 12:20:15 AM
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Reverse Stock Split == Corporate Suicide or will be consider
The stock will RACE down farther once the reverse split is complete.
They think $0.90 is low... wait until the 2 or 3 to 1 reverse splits goto $0.70 or even lower.
October seems to be a bad omen for SCOg period.
At least until Microsoft buys "ME, Inc." from them.
-- [link|mailto:greg@gregfolkert.net|greg], [link|http://www.iwethey.org/ed_curry|REMEMBER ED CURRY!] @ iwetheyFreedom is not FREE. Yeah, but 10s of Trillions of US Dollars? SELECT * FROM scog WHERE ethics > 0;
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Post #283,314
4/29/07 9:45:23 AM
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Reverse splits may not be enough.
Share price of $1 or more is only one of the requirements.
NASDAQ also requires 750,000 shares to be held by the public (i.e. other than corp. officers, directors, and major owners (>10% shares). The value of the public shares must exceed $5M. The number of shareholders holding 100 shares or more must be at least 400. There must be at least 2 market makers, i.e. firms that are willing to, at a price, sell and/or buy the stock.
[link|http://www.nasdaq.com/about/nasdaq_listing_req_fees.pdf|(PDF) NASDAQ Reference]
As a public company, SCOX is definitely circling around the drain.
Alex
When fascism comes to America, it'll be wrapped in a flag and carrying a cross. -- Sinclair Lewis
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Post #283,315
4/29/07 12:16:35 PM
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Share Number shouldn't be a problem
Share price of $1 or more is only one of the requirements.
NASDAQ also requires 750,000 shares to be held by the public (i.e. other than corp. officers, directors, and major owners (>10% shares). The value of the public shares must exceed $5M. The number of shareholders holding 100 shares or more must be at least 400. There must be at least 2 market makers, i.e. firms that are willing to, at a price, sell and/or buy the stock. Here is a summary [link|http://www.marketwatch.com/tools/quotes/financials.asp?symb=scox&sid=1453151&report=2&freq=2|balance sheet]. If I'm reading it right there are 21 million shares, so even with multiple reverse splits they won't have a problem with the number of shares. The total value is around $18 million no, so if the price collapses after the reverse split they could end up with a problem against the $5 million rule. I have no idea how their shares brake up, but that could be a concern if large chunks are held by a few (stupid) investment groups. Jay
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Post #283,334
4/29/07 7:21:58 PM
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October is when they "said" cash runs out.
So, unless M$ buys ME, Inc, they are goners on NASDAQ anyway. The 30 business day sub-$1.00 thing was the straw... YEA!
Actually, SCOX is already in a sink with clogged drain...
I am just waiting on Novell (or IBM if it gets impatient) to plunge.
-- [link|mailto:greg@gregfolkert.net|greg], [link|http://www.iwethey.org/ed_curry|REMEMBER ED CURRY!] @ iwetheyFreedom is not FREE. Yeah, but 10s of Trillions of US Dollars? SELECT * FROM scog WHERE ethics > 0;
0 rows returned.
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Post #283,761
5/3/07 12:15:24 AM
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I think some of the rats . . .
. . are getting out before the ship gets delisted, the stock's still trending down. They probably can't bring it up significantly because more rats would start to bail.
[link|http://www.aaxnet.com|AAx]
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Post #283,766
5/3/07 6:23:34 AM
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Hmmm - so then, rats think like MBAs? How prescient.
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