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SCO’s 10K: Now What? Caveat Emptor

“SCO has filed its 10K Annual Report for the fiscal year ended
October 31, 2007. What a year it has been. They are down to 115
employees as of that date. Probably less now. They ‘anticipate a
reduction in force as a result of Chapter 11 bankruptcy and in
order to return to profitability.’ Uh huh. Product revenue is down
27%. They expect that to continue. They can’t guarantee they’ll
make it out of Chapter 11. Those they owe money to could be left
with nothing or almost nothing. Common shareholders are in the same
boat, even if they do successfully implement a reorganization:

“A plan of reorganization may result in holders of our common
stock receiving no distribution on account of their interests and
cancellation of their common stock… Therefore, an investment in
our common stock is highly speculative…”

Complete
Story

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