Remember the first reporter called on in the last SCO teleconference? The one who asked several questions before they made him stop? The one who kept interrupting Darl to get real answers instead of generalities? Well, take a look at what he wrote here. It will restore your faith that there are still some genuine reporters in this world. It's called "SCO not exactly the lovable little guy". It begins, "Sometimes in a David and Goliath story, you want to root for Goliath." And it gets better from there.
The Wall Street Journal, of all places, which means all those stock traders living in Never Never Land are going to read it. Here's just a taste:
SCO is claiming widespread copyright violations in Linux. So far, it has shown only one example to outsiders, and only to those who have signed a nondisclosure agreement -- such as Ian Lance Taylor, a San Francisco Linux developer.
Wait til you see how he ends his article.
Restricted by the agreement in what he can say, Taylor described the infringing code as a trivial 80 or so lines of software (out of a total of 4.6 million in all of Linux!). Despite SCO's frequent insinuations to the contrary, Linux developers take copyright quite seriously. Recently, the Web site Slashdot posted an item about another small section of Linux similar to Unix. Within weeks, the code was replaced.
SCO says it won't identify all the infringing code in Linux because Linux developers would quickly replace it. But isn't that exactly what someone alleging a legal injury should, for starters, want -- to stop being injured? Damages for past injuries can always come later.
SCO To Comment on Exec Stock Sales Thursday
Bloomberg Newsis now on the story of SCO selling about 119,000 shares of their company since March, totalling $1.2 million. Prior to March, there had been no insider sales for over a year, according to Washington Service, a company that does this kind of tracking:
"Insider sales picking up is a negative sign," said Richard Campagna, who helps manage $750 million as director of research for Cleveland-based Shaker Investments. SCO spokesman Blake Stowell declined to comment on the share sales. The company will comment on the sales when it announces fiscal third-quarter results Thursday, he said.
This is interesting. According to the article, published in the Salt Lake Tribune, of all unlikely places, IBM's Linux customers include Unilever NV, the world's largest maker of food and soap, and VeriSign, which registers Web addresses. Here's some more financial info:
At closing Monday, shares of SCO were down $1.46, or 14 percent, to $9.29, on the Nasdaq Market. IBM rose 14 cents, to $81.02, in New York Stock Exchange composite trading. Other investors are betting against SCO. The amount of short interest in the stock rose more than tenfold between May and July, according to Bloomberg data. Investors sell a stock short to profit on any decline in the price.
I don't think the story has accurate figures. I had a list of all the transactions, but I seem to have misplaced it. I'll try to reconstruct and put it up as soon as I can.
SCO, which changed its name from Caldera International in May, has had one profitable quarter since it sold shares to the public in 2000. SCO consumed $14 million in cash in the fiscal year ended in October and had about $10 million in cash at the end of April. The company has no borrowings.