Should I pour every cent I make into this stock?

[JakeT.]

I don't know a thing about stocks, but I do know I'm getting a $10+ stock for $8.50 since I got a sweet job at Qwest.

Is there really any large risk of the stock falling below $8.50? Should I just buy as much as I can afford?

It seems like a sweet deal, but like I said, I don't want to lose it all in the blink of an eye either and have no idea how strong the portfolio on Qwest is right now. Great company that is doing alot of great things, but not sure how that will equate into stock prices.

 

[D2bets]

I assume you will have restrictions on selling the stock. Otherwise, you could of course buy ands then turn right around and sell for a profit.

 

[JakeT.]

I assume you will have restrictions on selling the stock. Otherwise, you could of course buy ands then turn right around and sell for a profit.

I believe there is like a 1 year hold if I remember correctly. That's what's making me hesitate... the fact the stock could be $4.00 when I want to finally sell it. Still, getting $1.50 off each buy is pretty nice.

 

[whalewager]

the company i work for was at twenty some odd dollars...

it went through bankruptcy and dropped to .10

 

[8ate]

..

..It is generally considered imprudent to invest in your own workplace; might lose your job, and your grubstake..>>

kinda like: "Don't get you pvssy where you get your paycheck.."

Verstehen??

jmho

gl
:nopityA: :nono5:

 

[GreenDoberman]

Nothing about that stock appeals to me really. Not a huge upside. Maybe put a little into it if you can't get a decent discount, but certainly diversify.

 

[Illini]

..

..It is generally considered imprudent to invest in your own workplace; might lose your job, and your grubstake..>>

kinda like: "Don't get you pvssy where you get your paycheck.."

Verstehen??

jmho

gl
:nopityA: :nono5:

I disagree. Nothing wrong with investing in the company that you work for. But only if it's a good investment. Jake, you need to max out your 401K and Roth IRA, and get them in good growth mutual funds. Don't buy a single stock until you know something about stocks. Everyone who dabbles in stocks gets buried. You have to have a passion for it to succeed.

 

[HatTrick]

A few years ago I worked at a place that offered a stock plan. From what I remember the stocks were purchased in 6 month increments using funds deducted from every paycheck (there was a max % of your pay that you're allowed to contribute).

They would pick a start and end date for contributions (Oct.1st to April 1st) and the money deducted during that period would purchase the stock at a 15% discount of the lower of the prices on Oct.1st or April1st. (If the price was $10 on Oct1st and $11 on April1st you would get the stock at $8.50).

The SWEET thing is that there was no holding period. So essentially I was guaranteed a minimum 15% profit no matter what.

If you have to hold it for a year it's a different story. Anything can happen in a year. A 15% discount is a decent cushion at least. Let us know what you decide! Good luck.

 

[D2bets]

I believe there is like a 1 year hold if I remember correctly. That's what's making me hesitate... the fact the stock could be $4.00 when I want to finally sell it. Still, getting $1.50 off each buy is pretty nice.

Hmmmm....would there be anything to stop you from separately shorting the stock or doing put options? Just on the arbitrage alone it seems tough to pass on the bargain price.

 

[BASEHEAD]

Hmmmm....would there be anything to stop you from separately shorting the stock or doing put options? Just on the arbitrage alone it seems tough to pass on the bargain price.

I cant why you think it would drop like that based on previous performance.

If youre going to hold it,its a good bargain.Their balance sheet leaves alot to be desired but assets have grown consistantly and the its just coming off an alltime high.Its suffered a little correction and IMO probably keeps climbing like has been,slow and steady.At least thats what a cursory analysis tells me.

 

[JakeT.]

I was just told I have to be at the company for 6 months, then I can buy all the stock I want at a 15% discount. The manager I talked to said there is no hold time, although I can only buy a set amount per month and no more than $25,000 a year.

 

[Illini]

Hmmmm....would there be anything to stop you from separately shorting the stock or doing put options? Just on the arbitrage alone it seems tough to pass on the bargain price.

Probably too much premium involved in options, for such a small margin. Shorting the stock......that may work if you have enough capital.

 

[heart222]

Most companies offer stock at a discount. It is a fairly common practice. You should take advantage of it. LEts face it if it goes sideways you have made 15%. Dont worry about hedging it etc its just a long term investrment. The firm I work for is up 47% this year and I have been buying at a 15% discount on top. Think positive otherwise why would you work there? regards heart222

 

[sunnyblue100]

Maybe buying some leap puts to lock in your profit? Not much profit left though.

 

[sunnyblue100]

Btw, I believe there must be some restrictions about how many shares you can buy at discount price?

I don't know a thing about stocks, but I do know I'm getting a $10+ stock for $8.50 since I got a sweet job at Qwest.

Is there really any large risk of the stock falling below $8.50? Should I just buy as much as I can afford?

It seems like a sweet deal, but like I said, I don't want to lose it all in the blink of an eye either and have no idea how strong the portfolio on Qwest is right now. Great company that is doing alot of great things, but not sure how that will equate into stock prices.