December’s ESPP looks very expensive now. Even the CFO sold a lot of stock last week. What’s your view? What happens if 10% of the company’s payroll stops buying stock?
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this is why i have it set to auto sell my espp as soon as i get it.
er meant "SELL ONLY THAT" not "SEE ONLY THAT"
you want to track what your sunk cost is. SEE ONLY THAT, IF NECESSARY, AND WHEN QUALIFIED (LONG TERM).
say you contribute 15% of your pay.
once the next quarter of espp goes "qualified" - sell exactly that dollar (NOT SHARE) "sunk cost" amount.
key is to wait until qualified as will be long term capital gain.
don't sell the rest - just your sunk cost. THAT IS NOT YOUR MONEY. RECOVER YOUR SUNK COST.
did the above for seventeen years and indeed a good chunk of change. ($650K-ish).
old-timers had a good run of less than $10 per share purchase price; your mileage may vary.
stock price went to 2 years back.. it is not always true to say "hold and wait for peak"..
Most CxO sell orders are pre-programmed in advance.
Thanks for the guidance. I just got nervous when I saw the CFO sell 70k shares at $40. Worried it might be $30 in a few months. The CFO knows more than me. A downward stock would reduce demand for ESPP (unless you sell immediately for a 15%return) and less demand from Cisco’s payroll would further the drop in the share price
Actually, that’s not how it works. It’s a rolling two year window.
You end up buying at actual date when stocks are bought on your behalf (whichever is lowest of the two December2019 or June2020), with a 15% discount of the actual price.
FFS, read up what ESPP is and how it works. There should be a general IQ test annually for employees.
I have tons of ESPP that I acquired at $12, $15, & $18 per share. I sold most of the $18/share stock back at $45. I'm still holding onto my $12 & $15 shares. I probably should have dumped them all back at $50+, but I wasn't watching the stock.
You should only sell immediately for shares that you get when Cisco peaks or is trading flat. Stuff you buy as Cisco is climbing is worth holding onto until it does peak.
Don't panic.
@aux+13MCci88 : I think I understand how it works - and I know I can make at least 15% if I sell on the day I get the shares ... but I don't always do this. I bought some shares in Dec at 40.76 which is higher than today's market price. Is the best strategy to sell immediately?
If you're asking this question, you do not understand how the ESPP works.