10
- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Employee Stock Purchase Programs. Sell me on this as an investment. No lookback period.
Posted on 7/12/22 at 1:43 pm
Posted on 7/12/22 at 1:43 pm
I'm offered a chance to buy our company stock. Its close to $500 a share. You put money in the kitty over 26 paychecks. Twice a year they purchase for you at 10% discount. No lookback period.
Once the valuation gets so high, I suppose there is only diminishing returns? I can't really set aside enough money to get 4-5 shares at the current price per year (outside 401k).
Hypothetically, if the stock was low, I'd be kicking butt picking up affordable shares with upside. This thing hasn't budged and $500 a share is kind of cost prohibitive.
You got to hold for 1 year once bought. Seems like a huge gamble.
Once the valuation gets so high, I suppose there is only diminishing returns? I can't really set aside enough money to get 4-5 shares at the current price per year (outside 401k).
Hypothetically, if the stock was low, I'd be kicking butt picking up affordable shares with upside. This thing hasn't budged and $500 a share is kind of cost prohibitive.
You got to hold for 1 year once bought. Seems like a huge gamble.
Posted on 7/12/22 at 1:48 pm to DiamondDog
1) Are you asking people to sell you on an investment that we don’t know the company of?
2)The risk is marginalized by virtue of the discount. Even if it’s flat in the short term, it’s still 10% immediate return. Don’t ignore dividends either.
(3)
How the hell is upfront 10% gains on a stock that’s flat a “huge gamble?”
Do you even invest?
2)The risk is marginalized by virtue of the discount. Even if it’s flat in the short term, it’s still 10% immediate return. Don’t ignore dividends either.
(3)
quote:
You got to hold for 1 year once bought. Seems like a huge gamble.
How the hell is upfront 10% gains on a stock that’s flat a “huge gamble?”
Do you even invest?
This post was edited on 7/12/22 at 1:51 pm
Posted on 7/12/22 at 1:49 pm to DiamondDog
For me personally, 10% wouldn't be a good enough discount for a 1 year lock.
My philosophy is I keep zero exposure to the company's stock (outside of unvested ones). Eggs in one basket and what not. If we do well, I get good raises, bonuses, stock awards etc.
One thing I want to point out, since you mentioned it a couple of times, just because the price per stock is $500 does not mean that the valuation is high.
My philosophy is I keep zero exposure to the company's stock (outside of unvested ones). Eggs in one basket and what not. If we do well, I get good raises, bonuses, stock awards etc.
One thing I want to point out, since you mentioned it a couple of times, just because the price per stock is $500 does not mean that the valuation is high.
Posted on 7/12/22 at 1:49 pm to Volvagia
Privacy? Pays no dividend.
Posted on 7/12/22 at 1:51 pm to DiamondDog
I guess it all depends on how much you believe in the future of the company.
The companies I’ve worked for let you buy at a 15% discount (more complex than just that as you get the stock at the lowest price for previous year minus the 15%.
The having to hold for a year seems silly
The companies I’ve worked for let you buy at a 15% discount (more complex than just that as you get the stock at the lowest price for previous year minus the 15%.
The having to hold for a year seems silly
Posted on 7/12/22 at 1:52 pm to Volvagia
quote:
the hell is upfront 10% gains on a stock that’s flat a “huge gamble?” Do you even invest?
Not really. Kind of why I started the thread.
Posted on 7/12/22 at 1:53 pm to DiamondDog
quote:
Privacy?
I understand why you did it.
I’m just calling out the logic behind the request to “sell me” on an investment that you don’t want others to know what it is.
Coulda just started a thread asking what others thought about a company’s stock rather than personally tying yourself to the thread.
This post was edited on 7/12/22 at 1:54 pm
Posted on 7/12/22 at 2:29 pm to DiamondDog
You have to buy whole shares? Is that normal? As in, you can't just contribute $400 and buy 4/5s of a share?
As said, yes I've never been a big fan of putting eggs in one basket. If your company does poorly then the stock tanks and you could lose your job.
It really depends on how comfortable you are with the company OP.
As said, yes I've never been a big fan of putting eggs in one basket. If your company does poorly then the stock tanks and you could lose your job.
It really depends on how comfortable you are with the company OP.
Posted on 7/12/22 at 10:16 pm to DiamondDog
Sounds like the UNH plan
Posted on 7/12/22 at 10:52 pm to DiamondDog
10% discount isn’t enough for me to bite. You have all your human capital in that same firm so I would need a greater risk premium to put more eggs in that basket.
Posted on 7/13/22 at 6:19 am to DiamondDog
I am interviewing for a company right now that has a buy 2 one free EPP. This is nice considering their 401k match is terrible compared to my current company
Posted on 7/13/22 at 7:31 am to DiamondDog
ESOPS are more or less tax schemes where the owners can and usually do retain majority role of the company. Thats my opinion
Posted on 7/13/22 at 6:51 pm to DiamondDog
Someone is giving you a 10% return when market is contracting 10%.
What am I missing?
What am I missing?
Posted on 7/13/22 at 7:35 pm to DiamondDog
Keep in mind that the discount is income. Work that into your calculations.
From there, just decide if it's a good stock at that price. If it's going to tank it's a bad deal. If you think it will maintain its value, buy.
From there, just decide if it's a good stock at that price. If it's going to tank it's a bad deal. If you think it will maintain its value, buy.
Posted on 7/13/22 at 8:02 pm to lynxcat
quote:
10% discount isn’t enough for me to bite. You have all your human capital in that same firm so I would need a greater risk premium to put more eggs in that basket.
This is ridiculous. If the company is established, which I assume it is, you’d be crazy not to do it. You get an automatic 10% return off the top. I’d hope the company isn’t that close to failure. And, if you were to get laid off, you have a stock that you got at a really good discount.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News