Should I purchase IBM stock internally at 15% discount? I don’t get stock be default but I can purchase IBM stock at 15% discount. I heard IBM is considered a stable stock for the recession. TC: 111k
IBM is busy being cringe: https://mobile.twitter.com/IBM/status/1531998442054197250
Lol
Buy but don’t hold - cash out on that discount asap
Are you allowed to sell your stock right away? I’ve never purchased stock internally before
Yes you can sell it the next day pretty much as long as you’re not in a blackout period which usually you’re not
Buy at 15 percent off and sell in next available window. If the stock is stable, you would still make that profit. What is the problem?
There’s no vesting period? I’m not sure how internal employee stock purchases work
Also wouldn’t short term capital gains tax eat up the profit?
Yeah don’t buy to hold. Just put tons of money into it and sell immediately. Worst case it’s an immediate 15% ROI.
Are you allowed to sell immediately? There’s no vest period?Not sure how internal stock purchases work
Also wouldn’t short term capital gains eat up any profit?
I bought IBM for the dividend even with out discount. Should be okay holding some… Even if sell it at vest, it’s 15% profit
Is it a good buy even after it grew 20% in the past month?
EPS peaked in 2013 ($14.94/share) and has been trending down to $6.35 in 2021. And p/e has gone from a low of 8.6x to 22x (currently) - fueled in large part due to aggressive share buy backs vs core business earnings growth. Depends on your long term outlook and time horizon but there are so many other growing businesses at scale that seem more attractive. Small amount for espp may seem totally reasonable but try to think about opportunity cost vs 0.85x cost basis.
Guaranteed -5% annual returns
If you sell immediately, 1. You need to pay short term capital gains tax 2. The espp website takes 20-25$ per transaction The profit you make - you lose it on tax and transaction fee
Also, isn’t there a limit? Like 10% of pay check ?
I guess transaction fee is same for 10 shares sell order or 100 shares sell orders So you need to wait and sell shares in bulk
ESPP is a must. Instantly get 15% on your money.
This must be ESPP I would definitely buy
Do you think IBM is a good stock to hold during recession?
I wouldn't hold IBM ever, but an ESPP for IBM is pretty much free money IMO