Do you participate in the ESPP given our stock price is so high?

Our stock price has gone really high. We are up to $186.38 today. This is great! But, given it's so expensive, do you still participate in the ESPP.

 

Yes!!! Of course dumb ass!! You are guaranteed a 15% return minimum. No one has given those returns since Madoff's ponzi sceme. Wake the fuck up B&L idiot!!!

 

You can't buy many shares, even at a 15% discount, given the high price. You might better off working for Pfizer and participating in their ESPP because their stock price is in the $30 range and has more room to grow. Don't forget that the capital gains taxes will erode some of the profit.

 

You obviously flunked Economics you eye drop nerd! 15% is 15%..... Not to mention the stock price a year ago was $80 more than today.

Step aside and let the big boys handle this. You are obviously too stupid. Go back to delivering flowers in you territory you neophite.

 

At many companies you are automatically enrolled in the ESPP...how about here?

 

Who wants to be stuck with a stock that has lost $80 in value in a year? Some stocks cost only $40/share.

 

FYI share price doesn't dictate how expensive or inexpensive a stock is. The $30 Pfizer could in fact be more expensive than the $180 Shire stock. I would participate and hold the shares for at least more than a year but preferably at least 3-5 years.

 

Yes it's expensive so you probably want to put a high enough percentage of your salary in to gain a significant amount of shares.

Lots of events that could cause the stock to rise in the next year.

And remember, there are more expensive stocks out there-
Amazon = $670.90 today and near its all-time high! Just think if you bought just 100 shares prior to 2008 when it really took off!

Berkshire Hathaway class A shares are at $216,515. Now that is an expensive stock with a lot to lose!

 

I would contact a financial advisor and not take advice from people on this thread because they have no idea what they are talking about. The Berkshire stock is actually inexpensive, once again you can't look at the price of the share to determine how "expensive" a stock is.

 

The max purchase is like 12500 yearly. ESPP guarantees 15% profit. It's better than any savings return out there.

 

It is a missed opportunity to not participate. Capital gains is moot - hold the stock for more than a year so you don't pay short term capital gains tax. In the end Shire is still purchasing stock on your behalf at a 15% discount while also buying in at a lower price than you'd be able to our on your own.

 

I've worked here a year and have not yet participated. I think you are right and I am missing an opportunity, How much do you suggest I put in and how often do they purchase the stock?

 

You are mistaken. If less than a year you pay regular income tax at standard rates. If you hold for year and a day (Which is risky given Shire's volatility) you pay only capital gains at 15%

 

You don't seem to understand how it works, dear.

 

yeah really --- he is not taking into account that the stock could go down....way down and he could lose money.

 

Shire stock is down to 178 today.

 

What is the mistake? You and the other poster made the same conclusion; that is, if you hold the stock for longer than a year than you may likely pay less taxes (depending on your tax bracket). In addition long term capital gains is not set at 15% for everyone. It depends on your tax bracket and can range from 0% to 20%. This is much better than short term capital gains (ordinary income tax bracket) which can range from 10% to 39.6%. For most of us the short term tax rate would be 28 or 33% and long term is 15%.

You made a good point about Shire stock being volatile. In the end, most financial advisers will tell you to participate in a company offered ESPP, and they will tell you to keep the funds in the stock long term. In the end, FO and SK are looking to sell the company anyway, so that could be a nice payday to anyone who elected to hold the stock for longer than a year.

 

ESPP have always been good to take, even if you sell ASAP. Anyway, I wouldn't keep Shire stock long term because I am worried about Shire : pipeline is not producing anything, debt is massive, acquisition not possible for at least few years and Biotech speculation is over.

FO is driving the company fast with speculative promises, like synergies and unattainable goals ($20bn by 2020). He can deliver synergies in the short term by squizzing us but I wouldn't be surprised that the rumor he is working hard on selling the company is true: There is far less risk and much more money to make for him to sell rather than grow to $20bn.

 

FO was brought in here specifically to sell the company. He almost did it with AbbVie, which was a lucky break, but his luck ran out when the deal collapsed. Meanwhile, he collects 1.6B and goes on a shopping spree to keep the stock value high while also cutting expenses (see the "Dirty 30"). Either way, if you are in the rank and file, you are fucked! This is not a long term gig. Collect a check, nod at your manager, laugh at how inept Kathy and Perry are and keep looking for better job. If you've been here a while, hope for a nice severence package.