February 19, 2004

The latest SEC revelation

Chuck Talk writes "A small document crossed into public view at the SEC website on February 17, 2004. It didnt receive a lot of fanfare, nor a lot of press. It was very revealing though, because it finally shows us how heavily invested the Canopy Group is within the SCO group stock.

The document reveals that the Canopy Group holds no less than a 39.1% stake in the SCO Group stock or 5,591,855 shares. That means that the Canopy group has
a significant risk in the SCO Group vs. IBM, SCO Group vs. Novell, Red Hat vs. SCO Group and IBM Vs. SCO Group litigation. Still, that is only listing the domestic litigation that they now face. There are still matters that are pending abroad. Will they brazenly rush headlong into another series of suits? Can they be so naïve?

Time will tell the story of the tape, but the significance of the aforementioned document is that we finally know a much larger piece of the ownership puzzle now. As the Canopy Group of companies now jointly hold a 39.1% stake in the SCO Group affair, they have become embroiled by the headlong charge into litigation.

I have been trying to get the math to work out on this one. I am not certain that I can make it work out as it has been stated by the document. The last count of shares I had was somewhere on the order of 16 Million in the market, yet apparently from Mr. Yarros filing, there are still around 13 Million shares (if we assume that his count amounts to only 39.1% of the shares in the market)."

Link: orangecrate.com


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