The company i work for has decided this week to divest our part of the company from their conglomerate (sp) or businesses that they own... I have stock in the company now and i know that the company will be resold but what should i do while they look for other sellers...hold on to this stock and hopefully a bid will come from a bigger company in our industry to increase the amount of stock value, which doesnt seem like that will happen since we are the #2 company in our industry, or should i turn the stock back in cash and invest it in another way?
all responses are helpful in one way or another... this actually has me on edge... i dont want to lose the money at all...
this actually has me on edgeDon't be, there are pills for that.
Backs to your, eh, question. Can you clarify for us what's going on?
-Is the stock you own publicly traded? -You do mean the stock of the parent company don't you?
Often, when a company divest itself of a unprofitable business, the stock usually goes up.
polaris
Senior Member
posted: Nov. 10, 2006 @ 7:36a
Assuming that you work for a publicly traded company, this is probably not a big deal.
A few years ago Proctor & Gamble sold the Jif peanut butter brand to Smuckers. The impact on me was that I received one additional share of Smuckers stock.
The only question you need to be asking yourself is whether the stock will still be a good investment for you after it divests itself of the company you work for. I can tell you that it probably is a better investment for you just because it won't be the same company you work for, so you employment and investment fates aren't so closely linked. Without knowing specifics, I'm guessing this divestiture is probably a relatively small part of the 'conglomerate' overall so it's impact on the company is minimal, and assuming it's a good investment now, it will probably still be a good investment after the divestuture and a better investment for you personally since it won't then be the same company you work for.
I'm a little confused by your reference to the company being "re-sold" and "looking for other sellers" - are you saying they're going to try and flip it (sell the asset to one co., who in turn spins a portion of the acquired assets off into another sale), or do you mean that they're looking for buyers?
Assuming you hold stock in the parent, and it's a public company, this is probably a good thing for the reasons others have pointed out.
Probably no need to be so wound up over it, however from the tone of your post, a little diversification of your portfolio might be a good idea - never want to put too many eggs in a single basket.
brokestudent
Broke Member
posted: Nov. 10, 2006 @ 11:39a
Hmmm...I am wondering if you and my DH work for the same company...er, worked, he turned in his notice this week if that tells you anything about all the crap that is hitting the fan at the corporate level. Do you work in the healthcare industry?
kenandcoly
New Member
posted: Nov. 12, 2006 @ 5:38a
lostdude said: this actually has me on edgeDon't be, there are pills for that.
Backs to your, eh, question. Can you clarify for us what's going on?
-Is the stock you own publicly traded? -You do mean the stock of the parent company don't you?
Often, when a company divest itself of a unprofitable business, the stock usually goes up.
The stock is pubilcly traded but i had to go through my company to access the stock options i dont have an investment firm like td or etrade to go through..
the parent company isnt going anywhere just our part of the company will be divested. so other than that ive found out that our branch will only be open for another year than poof its gone...im fine with that i can find a job in the meantime. but another questin is will i be able to hold the stock that i have with the company or will they try to buy me and the other employees out?
kenandcoly
New Member
posted: Nov. 12, 2006 @ 5:43a
lrothkcsa said: I'm a little confused by your reference to the company being "re-sold" and "looking for other sellers" - are you saying they're going to try and flip it (sell the asset to one co., who in turn spins a portion of the acquired assets off into another sale), or do you mean that they're looking for buyers?
Assuming you hold stock in the parent, and it's a public company, this is probably a good thing for the reasons others have pointed out.
Probably no need to be so wound up over it, however from the tone of your post, a little diversification of your portfolio might be a good idea - never want to put too many eggs in a single basket.
they are looking for other buyers i should have explained myself better about that. this is the first stock that i own right now... i was going to use this stock to help me open an account with td waterhouse in another year or so (cashing out through my company and open an account) but i think ill hold out from the responses that im getting and just concentrate on getting ready to move on in 6 months or so...
kenandcoly
New Member
posted: Nov. 12, 2006 @ 5:44a
brokestudent said: Hmmm...I am wondering if you and my DH work for the same company...er, worked, he turned in his notice this week if that tells you anything about all the crap that is hitting the fan at the corporate level. Do you work in the healthcare industry?
im in the food distribution industry. very popular company in europe and in the mid atlantic and central states.
There are various reasons why companies like their employees to hold stock in their company. Those reasons are not going away due to the spinoff.
Your stocks' value will either go up or go down as a result of the spinoff and possible resale. But longterm, it will undergo other changes in value due to company performance.
As beckles suggests, this spinoff's effect on your stock is a temporary thing, and you're in it for the long haul.
Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.
Members of our community may attach files to a post in accordance with the User Agreement. FatWallet is not responsible for the content, accuracy, completeness or validity of any information contained in any attached file. Files have *not* been scanned for viruses. Be especially wary of Excel files which may contain malicious content.
