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Talking stocks, trading, and investing in general - Page 708

post #10606 of 11197
Quote:
Originally Posted by idfnl View Post

Disagree with what? I don't understand.
Your suggestion that he buy a used Pinto?
post #10607 of 11197
Quote:
Originally Posted by lawyerdad View Post

Your suggestion that he buy a used Pinto?

Well, as an investment prices have bottomed out. Pacers are getting record numbers.
post #10608 of 11197
Quote:
Originally Posted by lawyerdad View Post


Your suggestion that he buy a used Pinto?

Oh no I loved that part :).

 

I meant about not benefitting the employee or the company on a non zero sum basis.

 

Having a vested interest in the future of the company can change employees behavior. 

post #10609 of 11197
Quote:
Originally Posted by MSchapiro View Post


I meant about not benefitting the employee or the company on a non zero sum basis.

Having a vested interest in the future of the company can change employees behavior. 

Not so much in our modern layoff culture. What always changed my behavior as an employee was stability and knowing it would be tough to match my salary somewhere else.

I do agree it changes your behavior to some extent, and I do see efficacy in a scenario where stock or other form of alignment is something to achieve, but definitely not as a part of my core salary. I'd need to be at fair market value in cash and if there are sweeteners, then great.
post #10610 of 11197
N = myself is always the best way to form opinions on these topics.
post #10611 of 11197
My buddy told me his friend got a HR job for a well know non-ipo social media company and they offered her 250,000 in stock options on top of her high salary. That doesn't sound right
post #10612 of 11197
Quote:
Originally Posted by djblisk View Post

My buddy told me his friend got a HR job for a well know non-ipo social media company and they offered her 250,000 in stock options on top of her high salary. That doesn't sound right

Maybe the option is to buy the stock at market rate.
post #10613 of 11197
Quote:
Originally Posted by taxgenius View Post

Maybe the option is to buy the stock at market rate.

Or could be some sort of estimated value of a delayed award that doesn't vest until some years in the future?

Years ago I used to do a lot of work for Silicon Valley based company. The compensation structure followed the SV paradigm people have discussed here to almost a parodic extent. Employees were all hanging around until the stock hit X, at which point they'd be able to cash out all of their options and make $XXXXXX and quit.

I eventually stopped paying attention (after I stopped doing work for them, fortunately) so I don't know if the stock ever hit X, but I know that if it did it was years later than many of those folks were hoping/expecting. Unless options are immediately exercisable, I'm not sure how they could put a firm value on them.
post #10614 of 11197
Switching gears here, my wild speculation for what we'll see in the next year or two with my rose-tinted glasses:

- Hilary gets elected as president
- Market rallies into the year (not going to guess a %) due to reduced uncertainty
- Fed raises rates in December and market takes it in stride
- Stocks continue to rally moderately in the 1H of 2017
- We begin to see concrete rumblings of a tax repatriation holiday OR fiscal stimulus for infrastructure OR both
- Stocks rally well into 2017
post #10615 of 11197
Quote:
Originally Posted by lawyerdad View Post

Or could be some sort of estimated value of a delayed award that doesn't vest until some years in the future?

Years ago I used to do a lot of work for Silicon Valley based company. The compensation structure followed the SV paradigm people have discussed here to almost a parodic extent. Employees were all hanging around until the stock hit X, at which point they'd be able to cash out all of their options and make $XXXXXX and quit.

I eventually stopped paying attention (after I stopped doing work for them, fortunately) so I don't know if the stock ever hit X, but I know that if it did it was years later than many of those folks were hoping/expecting. Unless options are immediately exercisable, I'm not sure how they could put a firm value on them.

Why the what-seems-to-be-arbitrary-to-me $X share price? Was it some clause in their contract that precluded employees from selling before that price? Sounds like the company was already public.
post #10616 of 11197
Quote:
Originally Posted by GreenFrog View Post

Why the what-seems-to-be-arbitrary-to-me $X share price? Was it some clause in their contract that precluded employees from selling before that price? Sounds like the company was already public.

Yes, already public. I suppose there could have been some sort of contractual restriction as well, but I think it was just private, semi-arbitrary target.
My post probably wasn't clear. I wasn't saying a single "X" was the number for all of them. I just meant that a lot of the folks I dealt with there had their own, personal "X" number where they'd feel like they'd reached their target and were ready to bail.
post #10617 of 11197
Quote:
Originally Posted by lawyerdad View Post

Yes, already public. I suppose there could have been some sort of contractual restriction as well, but I think it was just private, semi-arbitrary target.
My post probably wasn't clear. I wasn't saying a single "X" was the number for all of them. I just meant that a lot of the folks I dealt with there had their own, personal "X" number where they'd feel like they'd reached their target and were ready to bail.

I was typing that same thing. Everyone has a whisper number to bail on.

They probably had a wait period, I think most often it's 6 months, but that's usually for pre-ipo buyers. For employees it can be different. I believe it was 6 months at facebook.
post #10618 of 11197

I've heard a lot of people with whisper numbers but no one has ever acted on it.  Like was discussed on previous pages, you get locked into that stock based comp and keep going.  I just feel like you want to cash out and diversify as I always think about those Enron people who lost everything keeping their retirements in company stock.

post #10619 of 11197
Quote:
Originally Posted by GreenFrog View Post

Switching gears here, my wild speculation for what we'll see in the next year or two with my rose-tinted glasses:

- Hilary gets elected as president
- Market rallies into the year (not going to guess a %) due to reduced uncertainty
- Fed raises rates in December and market takes it in stride
- Stocks continue to rally moderately in the 1H of 2017
- We begin to see concrete rumblings of a tax repatriation holiday OR fiscal stimulus for infrastructure OR both
- Stocks rally well into 2017


When, not if, Hills gets elected biotech will plummet. Unless the market already has that priced in, which could be, as it seems that sector got hammered in the last year.
post #10620 of 11197
Quote:
Originally Posted by Piobaire View Post

When, not if, Hills gets elected biotech will plummet. Unless the market already has that priced in, which could be, as it seems that sector got hammered in the last year.

Yeah, biotech seems like a risky play with Hilary in the fold.. but I'm not quite sure to what extent the market has that priced in. XBI is decently up today, for instance. I'm also not sure how much she would actually try to push against biotech companies.

Part of me thinks it was just convenient for her to mention biotech given the price gouging scandals that were big at the time. Maybe the dust will settle over the next several months and she will conveniently forget about the target she put on their backs.

Politics.
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