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Advice on what to do with company stock

Posted on 6/28/18 at 9:22 am
Posted by 50_Tiger
Dallas TX
Member since Jan 2016
39883 posts
Posted on 6/28/18 at 9:22 am
Hello again MT Sages, I was recently awarded a significant amount of stock from my company (NOK) for my performance last FY.

1) I know a few of you believe that holding company stock is a no and should essentially liquidate it into something else.

2) I partially want to hold onto this stock because it gives 0.45 cent per share and expectations are that 5G will cause the stock to triple over the next 5-10 years.

WWMTD?
Posted by castorinho
13623 posts
Member since Nov 2010
82010 posts
Posted on 6/28/18 at 10:12 am to
You got the stocks fully vested?

It's always good to diversify, if you believe in the company you'll get rewarded by job security, salary increase, bonuses etc. So I'd take some of it out, if not all, and invest it somewhere else.
Posted by 50_Tiger
Dallas TX
Member since Jan 2016
39883 posts
Posted on 6/28/18 at 10:13 am to
quote:

You got the stocks fully vested?


Jan 1st of next year. So I have some time to come up with a solid plan.
Posted by Jag_Warrior
Virginia
Member since May 2015
4074 posts
Posted on 6/28/18 at 10:15 am to
There's no universal answer. One of the biggest factors (other than the financial health of the company) is what percentage of your portfolio or net worth does this represent?
Posted by TheIndulger
Member since Sep 2011
19238 posts
Posted on 6/28/18 at 10:54 am to
I was doing my company's discounted stock plan, maxing it out for a couple years. The company stock tanked with oil price, we had a 10 to 1 reverse split, and it looked like we were going under. Things reversed and as soon as I got a little profit, I sold it. Now things have gotten a lot better and if I kept it, it would be worth about 3.5x my investment.

I would hold onto at least some. If anything it will motivate you to do better for the company.
Posted by castorinho
13623 posts
Member since Nov 2010
82010 posts
Posted on 6/28/18 at 11:09 am to
quote:

If anything it will motivate you to do better for the company.



job security, getting a great bonus, getting another stock award next year are good enough reasons to keep him motivated
I sell the minute my stocks vest,and generally I'm optimistic about the future of the company. But I already know if it does well, then that'll be reflected in my total compensation. So I sell the stock and invest in other things. That's just how I see it.
Posted by makersmark1
earth
Member since Oct 2011
15714 posts
Posted on 6/28/18 at 11:39 am to
Buy put options to protect your downside IF the position is a significant portion of your net worth.
Posted by Rize
Spring Texas
Member since Sep 2011
15719 posts
Posted on 6/28/18 at 11:44 am to
quote:

Hello again MT Sages, I was recently awarded a significant amount of stock from my company (NOK) for my performance last FY. 1) I know a few of you believe that holding company stock is a no and should essentially liquidate it into something else. 2) I partially want to hold onto this stock because it gives 0.45 cent per share and expectations are that 5G will cause the stock to triple over the next 5-10 years. WWMTD?



I sold mine two years ago at $115 and it got to $195 a week or two ago
Posted by 50_Tiger
Dallas TX
Member since Jan 2016
39883 posts
Posted on 6/28/18 at 1:21 pm to
I sincerely appreciate all the input, just trying to do the right thing.

Without being too open, we have already started massive commercial rollouts of 5G in select markets and will go nationwide next year.

My fear is that if I see in January I might miss the rocket launch of the stock from 5G profits end to end.

Would it be a good idea to hold until Jan 2020 to see how the initial boom from 5G effects price?

BTW, this is in EURO's and not USD.
Posted by deeprig9
Unincorporated Ozora, Georgia
Member since Sep 2012
63783 posts
Posted on 6/28/18 at 2:12 pm to
quote:

BTW, this is in EURO's and not USD.


Well in that case, sell it all! Convert the Euros to USD, then buy it all back.

Posted by 50_Tiger
Dallas TX
Member since Jan 2016
39883 posts
Posted on 6/28/18 at 2:21 pm to
quote:

Well in that case, sell it all! Convert the Euros to USD, then buy it all back.



I have considered this
Posted by bovine1
Walnut Ridge,AR via Tallulah,LA
Member since Dec 2004
1273 posts
Posted on 6/28/18 at 5:52 pm to
The problem is you are very concentrated if the stock is a big part of your assets. If your company hits hard times for whatever reason you may lose your job security and have the stock tank at the same time. This scenario happened to a very good friend of mine. Upper management cut a sweetheart deal for the very top guys and did a merger and everybody else was left holding the bag. Many of them were not offered jobs in the new merged company. Yes your stock may do well and prove to be a good investment. So will hundreds of others. I'd diversify myself. My 2 cents and good luck to ya.
Posted by TexasTiger1984
Houston
Member since Sep 2009
1375 posts
Posted on 6/29/18 at 7:53 am to
quote:

I sold mine two years ago at $115 and it got to $195 a week or two ago


You must work for Pioneer? I've been kicking myself for not buying two years ago at $115!
Posted by TexasTiger1984
Houston
Member since Sep 2009
1375 posts
Posted on 6/29/18 at 7:54 am to
quote:

I sold mine two years ago at $115 and it got to $195 a week or two ago


You must work for Pioneer? I've been kicking myself for not buying two years ago at $115!

I'll delete the name if you don't want it out there...assuming i'm right
Posted by 50_Tiger
Dallas TX
Member since Jan 2016
39883 posts
Posted on 6/29/18 at 7:56 am to
quote:

The problem is you are very concentrated if the stock is a big part of your assets. If your company hits hard times for whatever reason you may lose your job security and have the stock tank at the same time. This scenario happened to a very good friend of mine. Upper management cut a sweetheart deal for the very top guys and did a merger and everybody else was left holding the bag. Many of them were not offered jobs in the new merged company. Yes your stock may do well and prove to be a good investment. So will hundreds of others. I'd diversify myself. My 2 cents and good luck to ya.


I appreciate the input.

So far I hold:

- A 401k portfolio (Mixed).
- A company paid pension plan (3% every pay period).
- A small amount of crypto.
- And a DSP through (NOK) in which they match every share I buy and dispense stock awards into.

I feel pretty good about diversity, I just remember a few threads in here about Enron and what not.

The 401k portfolio has grown significantly over the past 3 years with the company but the stock offering (5,000 shares @ 6 EUR) gives me some unexpected cash

I am levying that NOK will go up to 9 bucks by EOY 2019 and I can possibly have a significant gain. I would also liquidate that money at some point to use as a significant downpayment on a home or mortgage (if I buy before then).
Posted by Rize
Spring Texas
Member since Sep 2011
15719 posts
Posted on 6/29/18 at 8:35 am to
No. My company stock went from $32 to $195 since 2012. It’s around $185 currently.
Posted by TexasTiger1984
Houston
Member since Sep 2009
1375 posts
Posted on 6/29/18 at 8:36 am to
So whats the symbol and should i buy??
Posted by Jag_Warrior
Virginia
Member since May 2015
4074 posts
Posted on 6/29/18 at 12:08 pm to
quote:

So far I hold:

- A 401k portfolio (Mixed).
- A company paid pension plan (3% every pay period).
- A small amount of crypto.
- And a DSP through (NOK) in which they match every share I buy and dispense stock awards into.


No one is trying to figure out your net worth or anything. But again, without knowing what percentage of your portfolio this would represent, all anyone can do is offer you anecdotals based on their own experiences (good or bad).

Here's the basic rule of thumb: no single stock position should represent more than 8-10% of a well diversified equity portfolio - this company stock is NO DIFFERENT than any other single stock position in that way. So if this is equal to or less than that range, and you believe in the financial prospects of the company, I'd keep it. If it's significantly more than that, I personally would trim it back to that safe zone. If it goes up, great. But if it tanks for some reason, you won't feel like you've been kicked in the nads by a horse.

Good luck.
This post was edited on 6/29/18 at 12:09 pm
Posted by 100851
Member since Jan 2015
107 posts
Posted on 7/2/18 at 8:44 am to
Anybody see RSYS this morning. Small time 5g player BO that was announced this weekend.
Posted by LZ83
La
Member since Sep 2016
17406 posts
Posted on 7/2/18 at 9:04 am to
CAT?
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