Webzter
Full time employment: Posting here.
- Joined
- Jun 29, 2007
- Messages
- 567
Every year I have a chance to buy ADRs (American Depository Receipts) in our parent company, Allianz SE (ticker: AZ). There's a one year blackout period before you can sell and we get it at a 25% discount (if it's trading at $24, we buy at $18)
The amount I'm eligible to purchase is under $10,000 so it's a lot of money (work with me here, I'm trying to change my mindset from 'anything under $100mm isn't a lot of money' to 'anything over $50 is a lot of money') but not an amount that would make me lose sleep if it lost value (if it lost all of its value, I'd be worried for other reasons).
It seems like a no-brainer to participate to me. I mean, a 25% discount on a stock with a P/E of 8.6 combined with what I know about our risk exposure makes it feel like I'll at least be able to cash in on that discount in a year if I don't want to hold it forever. However, our advisor always told me not to do it because "the stock hasn't been doing anything". Of course, he's not my advisor any more and this advice seems suspect.
Do it or not?
The amount I'm eligible to purchase is under $10,000 so it's a lot of money (work with me here, I'm trying to change my mindset from 'anything under $100mm isn't a lot of money' to 'anything over $50 is a lot of money') but not an amount that would make me lose sleep if it lost value (if it lost all of its value, I'd be worried for other reasons).
It seems like a no-brainer to participate to me. I mean, a 25% discount on a stock with a P/E of 8.6 combined with what I know about our risk exposure makes it feel like I'll at least be able to cash in on that discount in a year if I don't want to hold it forever. However, our advisor always told me not to do it because "the stock hasn't been doing anything". Of course, he's not my advisor any more and this advice seems suspect.
Do it or not?