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huge bargain:
3 buys of 6.5 million shares alone worth £13 million after hours.
21-Aug-19 16:53:00 161.602 1,722,592 Buy* 161.42 161.52 3m O
21-Aug-19 16:44:29 162.041 825,000 Buy* 161.42 161.52 1m O
21-Aug-19 16:35:08 161.76 5,525,521 Buy* 161.74 161.76 9m UT
GLA
My pleasure.
The UK market seems devoid of liquidity .... shorts are holding firm and people are taking their cash out of the UK ....
.... just as well Brexit was not about the economy .....
And this malaise is Brexit.
Thank you.
I will have one last go. Its about long term investment at a discounted price at the start of each scheme, with a tax incentive at the end,and if the share value is considered to be to low at maturity, then have the cash back and wait for a day like today and bye back in. Option price for 2010 was 5 year £1.04 when it matured the price was around £5 so at £250 a month £15k spent giving 14855 shares then valued at around £70k at todays value they are worth £25k so still £10k up on what was paid in and div for the last4 years say around £7500 so put in 15k still have 25k plus another 7.5k = 32.5k still over twice what was paid in.
Or better still 2009 5 year at 61p thats 22131 ( you could only do £225 a month) shares today worth £37600 still up £24k add them together £62k plus div say around £16k . So for 6 years investment you could have today £78k in your pocket, plus any cash you decided to have back if you felt the maturity value was to low some years...
Thank you.
I am still not very clear as the price of 80p was only for a relative short period.
If an employee continuously invested in this way over a period of 10 - 15 years I would imagine their average price would be be above £3 even if you included discounts.
Enlightenment. As I stated some employees use this as an add on to there pension, therefor a long duration not a quick buck. Yes 5 years ago around £4, but 2009 80p 2002 £2. remember this is a year on year facility if you plan it right, say the max you can put in each month is £300 (typical amount) spread that over several starting years so you end up with one maturing every year. That way the fluctuation in the price over time has little impact, the longer you do it the better. The price is taken from a given date for each scheme then discounted by 10% 3 year 20% 5 year so if the price is £1 then your option price at the end is, 3 year 90p, 5 year 80p . If on maturity the price was say 50p then you can have the shares at the option price or your money back, you used to get a small amount of interest on the money if you did that, not sure if you do now. Then in the mean time you have a dividend each year on the shares that are no longer in the scheme but in your name, to do with as you wish.
Is the light on now ?
NDN of okay. That makes sense thanks.
NDN,
Please enlighten me 5 years ago the shares were over £4 and 3 years ago they were nearly£5. How big was the discount. I somehow doubt that it was not 65%.
NDN,
I can not understand the logic as the price is now significantly lower then it was 3 or 5 years ago.
Yes you are correct Aus, poorly worded by me, there is no income tax to pay at the end is what I meant to imply, as the tax saving. i.e. the difference between the purchase price, as set 3 or 5 years previously including a discount, and the share price value when purchased. That is where the tax saving is at the end.
Our share scheme was tax free at Exxon Mobil up to £1500.You buy 1 and get 2 free, to be kept for 3 years.
NDN I’m not sure a share plan like that before tax is legal. I think government allows £1500 tax free investment but that I think would be fixed to 5 years..
For many employees the price drop is not a problem. Assuming they are using a share scheme then they get them at a discounted price set eigther 3 or 5 years earler, the Money is taken from there salary befor tax. At the end of the scheme they eigther have the shares or the cash plus a bit added on as intrest. Many who are not in the, now closed, finally salary pension, keep the shares year on year to use in retirement as an added bonus. So say 3 years of a dropping share is compensated for by a say previous 3 years of the price rising, so the longer they hold in general the better of they become, Romberg they are purchasing at a discount every time. Then add in dividends, which some reinvest others take the cash. The vast majority of staff who do this end up much better off than some may think... Discounted price, dividend, share price changes evened out over tine, and pay less tax on there wages as the money is before tax. For those who can afford it, how can this not be a winner by the time they retire.
Faultsman,
Win Win, if that works for you carry on. For me its been a lose lose. Particularly as we all know the dividend is going to be cut I invested at 203 and at 180.3. Those employees who ditched probably did the right thing. I have not been able to console myself with the increased dividend yield. If those guys invested in shares like Diageo, Astra Zeneca, Britvic or Unilever, I believe they should be celebrating where despite the dividend being increased the yield is much lower due to its capital gain.
Im a long term investor, and I hate to say it but I have enjoyed the low price as I have reinvested substantially and see it as a win win, plenty of years left to recover, I wonder how many employees have ditched their shares from the employee scheme as the price is probably substantially lower than the price they can get them for after the term ends. The kitchen sinking and rebuilding of the company is going ahead full steam, once stream lined and de clutered the only way to win back the customer base they once had would be to slaughter the price or give people something they cant refuse, time will tell, but the futures catching up fast and should be hear soon!, you cant deliver good news while the cull is still going on.
Good day for BT. I know the ftse is up but BT in top 20 risers.
Been a lot of down days of late so enjoy the moment and who knows, perhaps better days to come.