[ale] SCO Execs dumping stock

[John Marasco]

Really?  These automatic sales are occuring at prices that the stock has 
just recently (within the last month) gone above and are now coming back 
down to.  As such, they are little more than short term stop loss orders 
and not some sort of long term automated investment plan on the 
executives part.  I don't know what the SL Linux users discovered beyond 
the fact that these were automatic sales but I too wonder about the SCO 
executives plan.  If they think they will win the lawsuit then why 
sell?  If they think they will win but want to cash in on the way up 
then why cash in on the way down and not on the way up?  If they think 
they will not win, then why risk an insider trading lawsuit over this?  
The structure of the sales certainly makes it look as if they think the 
stock has peaked and are cutting their losses but if the stock tanks 
because of information forthcoming about the SCO lawsuit (like the 
specifics) then I would think that would scream insider trading.  Then 
again, the shares sold are only a small percentage of the total shares 
held by these individuals so it could be nothing.  On the other hand, 
the dollar ammounts (around $1,000,000) are rather significant when you 
consider that the total pay the top 5 SCO executives made in 2002 was 
around $440,000.

Time will tell but for now who knows??

Chris Ricker wrote:

>On Wed, 13 Aug 2003, Geoffrey wrote:
>
>  
>
>>I don't know if everyone caught this one, but:
>>
>>"According to the Salt Lake Tribune, 'SCO Group executives have sold 
>>about 119,000 shares of their company since it filed a lawsuit against 
>>IBM in March...' Their CFO started the $1.2 million sell-off just after 
>>the lawsuit."
>>
>>http://www.sltrib.com/2003/Aug/08122003/business/83193.asp
>>
>>So let the indictments begin...
>>    
>>
>
>Not necessarily. Some of the other Linux users in Salt Lake have been
>investigating this a bit more, and it appears most of the sales were
>automatic, scheduled sales. The SEC pays less attention to such trades, and
>it also makes it a bit harder to prove dumping....
>
>later,
>chris
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>  
>

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