[linux-elitists] [SCO] Integral Capital Management?

Ryan Waldron rew@erebor.com
Mon Sep 1 09:49:09 PDT 2003


On Mon, 1 Sep 2003, Larry M. Augustin wrote:

> They did not just feed $5M into SCO.  It appears that they have
> purchased SCO shares on the open market, just as you or I might do,

That is, if you and I were able to purchase the equivalent of the
ENTIRE average trading volume of SCO for several days.  It is, after
all, a pretty hefty chunk of stock.

> SCO doesn't see any of that money.

SCO, the corporation, does not.  But SCO's execs and other
shareholders who are dumping their shares at the now inflated prices
may see quite a bit of that money.

The simple fact is that a large institutional "buy-in" over a short
period of time, whether conspiratorial or not, can provide
*significant* price support against other sellers, and especially in a
thinly-traded small-time stock like SCOX.

So while it's true that SCO corp. doesn't get cash for the company
coffers, that just blithely ignores the potentially large personal
benefit to the Suit-n-Tie monkeys running the zoo in Orem (or Redmond
:) ).

> ICP is just betting on the SCO share price, like any other investor
> buying SCO stock.

They are probably betting on the SCO share price, but it's not
conclusively proven that they're "just" betting on it.

> The "twisted maze of companies" is a very common and comparatively simple
> structure for an investment firm.  There's absolutely nothing uncommon or
> unusual in their structure.

Agreed.

> Again, my point in all this discussion is that there's nothing
> unusual here.  This just looks like a typical institutional investor
> betting on a company's stock.

It does, except that it involves behavior and relationships between
people that we have certainly behaved in predatory and quasi-legal
manipulations before, and certainly aren't behaving rationally now
based on the technical merits of their claims.  Hence, it more than a
little interesting to look for clues as to what *else* might be
motivating these folks to act as they do.

> There's no money flowing into SCO here.  There's no conspiracy here;
> just an investment fund buying a company's stock because they think
> they can make money.

This is what you haven't proved.  I agree that there's nothing
remarkable about this sort of institutional behavior, on its face.
But, given the parties and the circumstances, I think it's a little
presumptive for you to claim broadly that "there's no conspiracy
here", as though it's impossible just because it's not necessarily
implied by the circumstances.

Look, I don't see black helicopters swirling in the air over my office
as I type this, but at the same time I think it foolish to think that
billg would ever pass up ANY opportunity to reward those who harm
Linux, even temporarily.  And with essentially unlimited cash
available to play with, it's much harder for me to be so blase about
whether or not he's doing so.  Whether it's this particular drop in
the bucket, I don't know, but I suspect you don't either.

-- 
Ryan Waldron    |||   http://www.erebor.com    |||    rew@erebor.com

"The web goes ever, ever on, down from the site where it began..."




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