[oclug] SCO says BSD is next
patsmith at pobox.com
Thu Nov 20 00:51:08 EST 2003
Dave Edwards wrote:
> The whole thing still makes me nervous, to put it mildly. However, I
> know of a more upbeat perspective:
> http://www.newsforge.com/business/03/11/19/1548242.shtml . I'm glad
> this piece mentions Groklaw as one of the winners. That woman deserves
> an award of some kind for the work she's putting in.
They also mention Baystar & RBC as losers because of their investment in
SCO. Seems to me it ain't necessarily so, at least financially.
According to the news reports, their investment is in the form of
convertible preferred shares. In my (limited) understanding, these
could be used to make a safe bet that SCO's common stock is going to go
down. One short sells the common stock, producing a bundle if the stock
does go down, and likely not losing much if anything on the preferred.
If the common stock goes up, then one converts the preferred to common,
neutralizing the loss from the short sell, and breaking even.
Of course, we might still be annoyed at their morals in providing
financial support for SCO's antics.
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