LWN: Comments on "Canadian bank backs away from SCO (News.com)"

Canadian bank backs away from SCO (News.com)

oconnorcjo — Mon, 10 May 2004 17:10:10 +0000

The funny thing is that thier stock price is almost at where the company was before the lawyers "came 'a knockin'". Except now they don't have a product to sell. Just think if they just focussed on a good OS distribution, SCO's stock price might be higher than this (look at RedHats recent rise) just by being one of the "good guys". At least "Darl and the gang" have shown thier true colors and thus will have a difficult time getting respectable jobs again. I also lost a lot of respect for David Boies for getting involved with SCO. It would be too optimistic to think that this case will hurt Bois like it is hurting McBride and SCO but I no longer respect him.

Canadian bank runs away from SCO

ironhacker — Mon, 10 May 2004 13:39:58 +0000

If the RBC "mystery client" had any brains, they would have shorted the stock at somewhere near $13.50. If they had NOT shorted the stock, there is no reason to let it slide from $20 all the way down to $6; the ejection handle would have been pulled at least two months ago. The loss of at least $7.50 per share has to be made up by one of the following factors:

1. Microsoft's alleged "We'll make up for any losses" program.
2. Shorting the stock (self-service version of option 1 above)
3. Microsoft's willingness to eat the loss directly (if they are the mystery client)
4. P.T. Barnum theory on the separation of fools and their money.

Canadian bank backs away from SCO (News.com)

jonth — Mon, 10 May 2004 13:17:22 +0000

Nope, you just need to turn your irony detector way up....

Canadian bank backs away from SCO (News.com)

flewellyn — Mon, 10 May 2004 02:47:51 +0000

Must be spring, the trolls are coming out to play.

Canadian bank backs away from SCO (News.com)

patriot — Sun, 09 May 2004 17:16:41 +0000

The Canadians should be charged with treason. First they refuse to help in the Iraq war and now they try to undermine our economy.

Canadian bank runs away from SCO

welinder — Sat, 08 May 2004 23:27:02 +0000

There's no reason why they couldn't have sold beforehand, for example two weeks ago or way back when the price was up near 20. They were in fact dropping hint about being thusly hedged.

Canadian bank runs away from SCO

hamjudo — Sat, 08 May 2004 04:52:59 +0000

After the conversion, RBC's mystery client will (briefly) own just under 5% of SCOX common stock. RBC couldn't convert more shares to common stock without crossing the 5% level. There is a lot less privacy for entities that own more than 5%.

If RBC's client is lucky, those shares of common stock will sell for something close to today's close of $5.99/share, in which case, they will "only" lose 55% of that part of their investment. More likely, the large sale will drive down the price of SCOX stock, and they will lose much more.

We don't know how much BayStar paid RBC for the prefered shares. People seem to assume it was a significant amount of money. There aren't many entities that would want the preferred shares at any price. BayStar probably bought the rest of RBC's SCOX preferred shares for pennies on the dollar.