Posted by: Anonymous Coward
on March 04, 2005 10:48 PM
Sure. Not that what I am saying is the case with SCO, this is in general. Often numbers are based on projections and expectation. So when the numbers are done, they add up what they really did spend, payables (have to pay), received, receivables (should receive a check for soon), loans and on and on. Part of that is often lawsuits. They have to be listed for both against the company and actions from the company. All of this goes into a statement of their financial health that is filed. They are then put online at the SEC.
As an investor I would look at that statement. Are they a good investment and make me money or am I throwing money out the window? There is also an annual report. I have a file cabinet full of them for my investments. These can be very well done and could last 100 years to being poorly done on acidic paper. They have statements from the company and what they plan on doing generally. Sometimes those statements of what they plan on doing are later revised. "We will introduce the new superblaster chip this fall that will be a blockbuster!" "Superblaster microbes will cure (something bad) and will be introduced this summer!" "We purchased patent # nnnnnnnn and that will allow us to collect X million bucks!" These are like some of the things I see.
I have to guess in SCO's case but I have a feeling it has to do with the revenue that they never got from trying to extort money from Linux end users. It could also have to do with loosing long time customers. Another posibility is the fact they have lost court cases or a combination or all of these factors. It could also have to do with something else like shoddy, perhaps criminal accounting like with Enron or MCI. I hope it is criminal activity and I hope they are prosecuted for it.
My personal opinion is that they are in big trouble. Whenever a company restates one of these statements it almost guarantee's a lawsuit. I don't think I have owned any SCO stock but if I did I would expect to get mail on a class action suit against them soon. The result would be something that I can't possibly use but the lawyers get millions for. Usually I get a coupon for something nobody wants.
If you plan on continuing with accounting, I encourage you to always be honest. Those reports stay forever and if you do something wrong it can bite you years later. If you don't know, find out. Look it up or get competent help. Your boss may be wrong. As with the cases in the courts right now, they may be intentionally or even criminally wrong to help their situation. One executive right now is accused of falsifying numbers because he had at least one loan that was secured by his stock. Stock goes down, they may foreclose on him. He is arguing that he didn't know of the accounting problems and in fact he was buying more stock. I have a feeling that nobody will believe him.
For SCO, time will tell. I'll throw them an anchor if I can.
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Re:Can anybody explain this?
Posted by: Anonymous Coward on March 04, 2005 10:48 PMAs an investor I would look at that statement. Are they a good investment and make me money or am I throwing money out the window? There is also an annual report. I have a file cabinet full of them for my investments. These can be very well done and could last 100 years to being poorly done on acidic paper. They have statements from the company and what they plan on doing generally. Sometimes those statements of what they plan on doing are later revised. "We will introduce the new superblaster chip this fall that will be a blockbuster!" "Superblaster microbes will cure (something bad) and will be introduced this summer!" "We purchased patent # nnnnnnnn and that will allow us to collect X million bucks!" These are like some of the things I see.
I have to guess in SCO's case but I have a feeling it has to do with the revenue that they never got from trying to extort money from Linux end users. It could also have to do with loosing long time customers. Another posibility is the fact they have lost court cases or a combination or all of these factors. It could also have to do with something else like shoddy, perhaps criminal accounting like with Enron or MCI. I hope it is criminal activity and I hope they are prosecuted for it.
My personal opinion is that they are in big trouble. Whenever a company restates one of these statements it almost guarantee's a lawsuit. I don't think I have owned any SCO stock but if I did I would expect to get mail on a class action suit against them soon. The result would be something that I can't possibly use but the lawyers get millions for. Usually I get a coupon for something nobody wants.
If you plan on continuing with accounting, I encourage you to always be honest. Those reports stay forever and if you do something wrong it can bite you years later. If you don't know, find out. Look it up or get competent help. Your boss may be wrong. As with the cases in the courts right now, they may be intentionally or even criminally wrong to help their situation. One executive right now is accused of falsifying numbers because he had at least one loan that was secured by his stock. Stock goes down, they may foreclose on him. He is arguing that he didn't know of the accounting problems and in fact he was buying more stock. I have a feeling that nobody will believe him.
For SCO, time will tell. I'll throw them an anchor if I can.
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