Not for long < 15 million shares
Message ID: 59617
Posted By: martin_lvnv
Posted On: 2003-11-08 02:29:00
Subject: Not for long < 15 million shares
Recs: 1
You probably ought to mention that there are less than 15 million shares out right now, but by the time the PIPE converts, it will be considerably in excess of 15 million shares. Just that one deal involved printing about 3 million brand new shares. It pissed off at least one long who posted here when his ownership got diluted. And who can say if thats the last time a deal will be announced where SCO hands out a couple million shares or options, etc.
Also SCO is already authorized to issue 45 million shares without even going back to the board to ask permission (as far as I know). And it has been freely running the share printing press printing shares for employee options, shares for SUNW as part of the deal where SUNW paid for a SCO license, shares for the Vultus deal, the PIPE etc. In fact, almost everything they announce involves printing shares. I think even the lawyers got a bunch of brand new shares.
Based on their past behavior, I think you can expect the share printing press to keep running. If you are going to take the market cap and divide by some number, the number probably ought to be close to 45 Million.
Otherwise you might be pretty annoyed to find SCO management has diluted your ownership.
Some of the people that claim this is just a stock scam are probably basing their opinion on the fact that SCO keeps buying blank pieces of paper for a couple cents and printing "SCO Share" on it, giving it to an employee or other company for peanuts, who then sell them to future bagholders at the currently way too high market price.
As far as those talking "short squeeze", it just can't happen since SCO (and their employees) keep selling thousands of additional shares (which ease any squeeze and can then be shorted) on already scheduled long term share selling plans. You can't have a squeeze at the same time you keep injecting lots of extra new shares into the market.
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Posted By: martin_lvnv
Posted On: 2003-11-08 02:29:00
Subject: Not for long < 15 million shares
Recs: 1
You probably ought to mention that there are less than 15 million shares out right now, but by the time the PIPE converts, it will be considerably in excess of 15 million shares. Just that one deal involved printing about 3 million brand new shares. It pissed off at least one long who posted here when his ownership got diluted. And who can say if thats the last time a deal will be announced where SCO hands out a couple million shares or options, etc.
Also SCO is already authorized to issue 45 million shares without even going back to the board to ask permission (as far as I know). And it has been freely running the share printing press printing shares for employee options, shares for SUNW as part of the deal where SUNW paid for a SCO license, shares for the Vultus deal, the PIPE etc. In fact, almost everything they announce involves printing shares. I think even the lawyers got a bunch of brand new shares.
Based on their past behavior, I think you can expect the share printing press to keep running. If you are going to take the market cap and divide by some number, the number probably ought to be close to 45 Million.
Otherwise you might be pretty annoyed to find SCO management has diluted your ownership.
Some of the people that claim this is just a stock scam are probably basing their opinion on the fact that SCO keeps buying blank pieces of paper for a couple cents and printing "SCO Share" on it, giving it to an employee or other company for peanuts, who then sell them to future bagholders at the currently way too high market price.
As far as those talking "short squeeze", it just can't happen since SCO (and their employees) keep selling thousands of additional shares (which ease any squeeze and can then be shorted) on already scheduled long term share selling plans. You can't have a squeeze at the same time you keep injecting lots of extra new shares into the market.
------------------------------------------------------------
The text of this Yahoo Message Board post has been licensed for
copying and distribution by the Yahoo Message Board user "martin_lvnv"
under the following license:
License: CC Attribution-NonCommercial-ShareAlike v2.0
------------------------------------------------------------