How far till bankruptcy for SCOX?
Message ID: 270185
Posted By: drichards1953
Posted On: 2005-06-01 16:48:00
Subject: How far till bankruptcy for SCOX?
Recs: 13
I find the financials they just released interesting. In just six months their assets have declined roughly 35%! This is not the sign of a healthy company. As we know the assets did not decline because of something like selling a division, as they have no divisions.
How much longer can SCOX limp along? I doubt much longer. Clearly they do not have a growing customer base and the chance of them prevailing in any of the litigation they started is very, very slim. If the Courts ordered SCOX to pay for the costs related to the non-sense litigation. say DaimlerChrysler that would finish off their available cash.
I cannot imagine why any company would come "aboard" SCO Group as a new customer. They might get a few existing customers to upgrade to the planned new version of Open Server, but it does not appear to be a large number. Most IT shops are looking to switch to Linux servers, if they have not already. SCOX has become nothing more than a scam selling a product that non one wants and filing lawsuits against former partners, re-sellers, and customers. This is not an effective business model.
How much longer can they last? I doubt much more than 90 to 180 days. If one of the judges hits SCOX with court and attorney costs on some of the litigation battles they started it may well be less. If they shut everything down and become a post box company they might make it to Q3, 2006, but I would even doubt that. At the present rate of decline in their assets they have, maybe, six months or less. I do not see how the revenue stream will do anything but continue to decline.
I see bankruptcy for SCOX this fall, if not sooner, with Darl and Ralphie screaming and pointing fingers everywhere but where they should. Darl and Ralphie failed their stockholders; they are the ones that decided on a business model that was less about selling a product and more about litigation. Not a good buisness model. Stockholders should be looking hard at them and demanding truthful and valid answers.
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Posted By: drichards1953
Posted On: 2005-06-01 16:48:00
Subject: How far till bankruptcy for SCOX?
Recs: 13
I find the financials they just released interesting. In just six months their assets have declined roughly 35%! This is not the sign of a healthy company. As we know the assets did not decline because of something like selling a division, as they have no divisions.
How much longer can SCOX limp along? I doubt much longer. Clearly they do not have a growing customer base and the chance of them prevailing in any of the litigation they started is very, very slim. If the Courts ordered SCOX to pay for the costs related to the non-sense litigation. say DaimlerChrysler that would finish off their available cash.
I cannot imagine why any company would come "aboard" SCO Group as a new customer. They might get a few existing customers to upgrade to the planned new version of Open Server, but it does not appear to be a large number. Most IT shops are looking to switch to Linux servers, if they have not already. SCOX has become nothing more than a scam selling a product that non one wants and filing lawsuits against former partners, re-sellers, and customers. This is not an effective business model.
How much longer can they last? I doubt much more than 90 to 180 days. If one of the judges hits SCOX with court and attorney costs on some of the litigation battles they started it may well be less. If they shut everything down and become a post box company they might make it to Q3, 2006, but I would even doubt that. At the present rate of decline in their assets they have, maybe, six months or less. I do not see how the revenue stream will do anything but continue to decline.
I see bankruptcy for SCOX this fall, if not sooner, with Darl and Ralphie screaming and pointing fingers everywhere but where they should. Darl and Ralphie failed their stockholders; they are the ones that decided on a business model that was less about selling a product and more about litigation. Not a good buisness model. Stockholders should be looking hard at them and demanding truthful and valid answers.
------------------------------------------------------------
The text of this Yahoo Message Board post has been licensed for
copying and distribution by the Yahoo Message Board user
"drichards1953" under the following license:
License: CC Attribution-NonCommercial-ShareAlike v2.0
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