February 2, 2004

Understanding Roles and Responsibilities

Chuck Talk writes "The SCO Group case has brought about some very interesting research from the community at large. There are claims by those who support the litigation that the case is valid; and that the stock is a Strong Buy based On Fundamentals. What fundamentals they are looking at is beyond the average and sane person to grasp for the company has never had any profit historically and has indeed bled cash at an amazing burn rate. One might argue that the company is a holdover from the Internet boom trying to justify its very existence through legal pursuits.

The interesting thing is that the company itself is pursued in court and may have succeeded in initiating enough litigation to ensure that its stock, its value and everything about the company are so hopelessly entangled that it cannot be purchased. One thing is for certain, as the number of the speculators investments has exceeded the value of the company, the dilution of interests will mean that someone is going to lose their shirt somewhere along the way.

Perhaps the least understood role within this whole operation has been that of the speculative involvement of what for all intents and purposes have been the otherwise well respected financial institutions and organizations. The mere fact that they have not disclosed their roles in the proper timeframe has led to speculation that perhaps they are there to earn short-term gains only. Perhaps they were, perhaps not. It is still too early to know the exact truth of their involvement.

I would like to take a moment to postulate another plausible role of the investment bankers; research analysts and stock market makers who have plead the cause of the SCO Group in print for so long. I would speculate (I am admitting it is only speculation, but it is plausible) that it is perhaps their role to set or communicate a market price at which the SCO Group would like to sell the company."

Link: orangecrate.com


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