Santa Cruz Operation (SCOC) Going Up? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Santa Cruz Operation (SCOC) Going Up?

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Lou who wrote (208)	12/12/1997 11:37:00 AM
From: Tim Nettesheim	of 656

I have held scoc for some time and have formed some conclusions regarding it based on my research as well as anecdotal observations: 1. The stock seems very susceptible to market maker influence and perhaps manipulation. Price drops have consistently been followed by bad news leading me to the conclusion that some traders of this stock obtain advance info re scoc that the public does not. My assumption based on the recent drop is that one or more things are occurring: (a) tarantella is not selling well and business in general is bad such that 1st qtr earnings estimates will not be met. It could also be that further enhancements to tarantella/gemini are behind schedule; (b) from about sept '96 to jan '97 the maket makers pushed this stock hard and ran it up past 8 with the result that there are a lot of small stockholders with losses in the stock. I am sure they are taking their losses before year end and perhaps being encouraged to do so by the various boiler room outfits that trade small spreads in this stock. If you can keep your trading costs down, this stock has a consistent back and forth trading pattern that lends itself to small quick profits for short term traders. I wouldn't be suprised to see a little bounce back to 5 and 1/2 in early January that will benefit those who now buy in at 4 and 1/4; (c) of course it is always possible that scoc's products are actually doing well and that insiders know earnings will be doing better leading market makers and their cronies to encourage a tax loss sell off so they can buy in at the low and get an even better bounce in late January when 1st qtr. results are in. Overall, I am skeptical of the long term viability of staying in this stock. No matter how good their product is (most investors have no understanding of the unix v. nt war or its likely outcome), the fact is that the odds do not favor betting against the MS juggernaught. To stay with the stock I think you must believe either that the unix/java/internet computing strategy stands a chance against MS or that scoc is so well run that they will overcome the strategic challenges that go with fighting MS. I don,t believe either. For what its worth, that's my two cents on scoc's prospects.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next