SCO Possibly Delisted from NASDAQ 366
canfirman writes "Reuters is reporting that SCO could be delisted from the NASDAQ because "it has not filed its annual 10-K report with the SEC". The company claims it's because "it is examining matters related to stock issued as part of its compensation plans". SCO Stock is sitting at $4.30 at opening today. It'll be interesing to see where it goes from here."
"We're sorry, that story is not available" (Score:1, Informative)
Another link.. (Score:5, Informative)
SCOX - SCOXE (Score:5, Informative)
http://ca.us.biz.yahoo.com/prnews/050217/lath062_
Re:requirements? (Score:3, Informative)
There are several non-regulated stock markets out there. http://www.otcbb.com/ [otcbb.com]Is one.
not really likely to get delisted... (Score:5, Informative)
Re:requirements? (Score:1, Informative)
they only have to do paperwork for new issues of stock such as those for employee compensation
How does one who own SCO stock supposed to sell his stock?
just like any other stock, once it goes through the investment bank as a new issue or IPO, the corporation really has no involvement with the trading of the stock in the secondary market. if it is delisted, the stock will simply have a tiny secondary market that will be difficult to find.
Can they do this w/o getting sued by their share holders?
why would shareholders sue their own business?
Re:Yeah, interesting's right... (Score:2, Informative)
Re:not really likely to get delisted... (Score:5, Informative)
Real Time Quote (Score:4, Informative)
Re:Other reasons for delisting - correction (Score:3, Informative)
Re:SELL SHORT? (Score:5, Informative)
1. Many brokers don't let you short a stock that is below $5.
2. Delisting a stock decreases liquidity which can make it very difficult to cover your short if the stock rises precipitously.
Unlike buying a stock which has a limited downside potential (the stock goes to $0 in which case you lose your entire investment), shorting a stock has a theoretically infinite downside potential. If you short a stock at $4.30 and it goes up to $1,000,000 per share, you've lost almost a million dollars for each share you shorted. Of course, that's not realistic, but the point is that shorting a stock is not to be taken lightly.
We're about to find out the dirt on Darl (Score:5, Informative)
The "10-K" is the backup data behind a company's annual report. It's the single most important disclosure of a company's financial status. The SEC allows 3 months after the close of the fiscal year for a 10-K filing. SCO's year closed at the end of October, and their 10-K was due at the end of January. Late filing of a 10-K or 10-Q (the quarterly report) is considered a major red flag for a stock. When I was following dying dot-coms [downside.com], a late 10-K or 10-Q was a strong indicator of trouble. Nobody files late because they have unexpectedly good numbers.
SCO filed an NT-12K form [sec.gov] with the SEC, asking for a 15-day extension. "The Company currently anticipates that the Form 10-K will be filed by no later than the fifteenth calendar day following the date on which the Form 10-K was due." They missed that date, too.
There has to be something really embarassing in the compensation plan. Really embarassing, if they're willing to risk delisting from the NASDAQ.
Delisting kicks a stock down to the pink sheets [pinksheets.com]. That's where the penny stocks favored by spammers and scammers live.
Re:SCOX - SCOXE (Score:5, Informative)
Re:Pitty (Score:3, Informative)
One must wonder: Who's doing the buying?!
Re:SELL SHORT? (Score:2, Informative)
(1) Selling shares that you don't have (you borrow them, and pay some kind of interest on the loan usually 25-300bp over prime or so), this opens your position.
(2) To close this position, you need to buy back the shares (to give back to the person you bought them from). If the stock is thinly traded (e.g. a delisted SCO would trade on OTC-Pink Sheets), it might be difficult to buy them back.
Re:requirements? (Score:5, Informative)
Because the company was mismanaged. Because the executives were negligent in performing their duties.
Shareholder lawsuits happen all the time. You don't follow business news, do you?
Re:If they go down. (Score:3, Informative)
Re:requirements? (Score:5, Informative)
IIRC, I don't think a copy can list on the bulletin board unless they do the necessary filings under the 1934 securities act, like the 10-K and other annual reports. Maybe I'm confusing the bulletin board with something else.
Getting a delisting notice is not good, but not the end of the world. Having that "E" on the end of your symbol until you get your paper work in will get you dropped out of a lot of mutual funds who won't hold stocks that don't conform to the market's rules. If you want to make a bet on SCOX, you can try going short if you think they won't make the reporting deadline. Peeking at the short ratio, looks like a lot of people are thinking the same.
Re:SELL SHORT? (Score:3, Informative)
Re:Gloating? (Score:5, Informative)
If you want to know what is going on with SCOXE, you need to follow Growlaw every day, and also the SCOX message board at Yahoo.
This is very worthy of a Slashdot post. These bastards have told huge lies in the media and press. Made the most outrageous claims about Open Source, the GPL (unconstitutional, communists, etc.), created a cloud of FUD about Linux intellectual property, and even a FUD cloud about open source in general. They have engaged in a stock scam to unjustly enrich themselves while doing the previously mentioned things. They have claimed to own rights that they do not own. They have accused everyone who uses Linux (that is me personally) of owing them license money. They have sued Linux users (although not over Linux use per se). They have threatened to sue any Linux user (i.e. me personally). They have produced not one shred of evidence that they own anything in Linux.
This is not gloating.
The truth needs to come to light. Anyone found to have engaged in criminal activity should be prosecuted.
Re:It this the first sign that they are folding (Score:3, Informative)
Re:Interesting (Score:4, Informative)