DESPP change

Discussion in 'UPS Discussions' started by over9five, Apr 27, 2009.

  1. over9five

    over9five Senior Member Staff Member


    The DESPP discount has been reduced from 10% to 5%.

    Also the price is now based on the stock price on the last day of the quarter (instead of the lowest of first day or last day).

  2. drewed

    drewed Shankman

    This was announced back during peak to take effect after the 1st quarters earnings were announced
  3. rod

    rod retired and happy

    Not that it makes any difference to me but what the heck is a DESPP?
  4. Feederdrivermack

    Feederdrivermack New Member

    discount employee stock purchase plan- this news was posted a while back. I understand the 10-5% decrease, but the average sale price was a good thing in the past.
  5. over9five

    over9five Senior Member Staff Member

    Yes, it said that in the letter I got today. How'd I miss that news???

    You mean how we got it at the lower of the first day and last day of the quarter. NOW, they get to keep all this money they collect each pay period, and collect interest on it (which they've always done), except now it no longer matters what the low price was.
    Not even close to the great deal it used to be.
  6. drewed

    drewed Shankman

  7. Feederdrivermack

    Feederdrivermack New Member

  8. browniehound

    browniehound Well-Known Member

    Ouch, is right Over. You asked for comments so here is mine.

    As most of us just experienced, stocks are a very risky investment. It becomes an even greater risk when you depend on the company you're investing in for a paycheck also.

    It becomes even more risky when you put many dollars in one company. There are many of us contributing 10% of our pay to the 401K and $50$100 after tax to the stock.

    Too much money allocated to UPS stock in my opinion. Even at a 10% discount its too much. Now that they lowered it to 5% and changed the price, forget about it.

    I wouldn't touch this with monopoly money. Think about it. The stock hasn't done well since the IPO. With Fed-Ex crawling up our back, I think the best days are behind UPS as far as stock price?
  9. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    While I tend to agree with your assessment of buying UPS stock I'm not sure the best days are behind us.
    I don't remember any real good days in the last 8 years ... it hasn't done anything.

    As the economy improves, UPS stock will probably go up. Could be looking at a 40% increase over the next three years.
    I think UPS is basically a utility type stock and once the economy flattens out then it will creep along with a P/E of 14% or so and a yield of 2 - 2.5%.

    But why take the risk ... buy an index stock fund and get the same return with less risk.
  10. brownmonster

    brownmonster Man of Great Wisdom

    Best part of buying UPS stock other than pre-IPO is that you won't have to worry about capital gains when you sell it.
  11. tieguy

    tieguy Banned

    we may all wish we had bought some with the 5 percent discount when it was in the low 40's.

    I agree with the point about diversifying your investments. I also think ups is still a good investment choice. There is still a tremendous amount of growth available with the international market and the logistics market in general.
  12. 29th Christmas

    29th Christmas New Member

    Anyone else out there put a virtual stop to any NEW investing like I have lately?

    I did buy the new model mattress from Serta though---model 401k :happy-very:

    Cash is King! And the wife and I are workin' on paying the truck and house off early.
  13. brownmonster

    brownmonster Man of Great Wisdom

    I don't stop investing when the market is down. I prefer to buy low. When it doubles are you gonna jump back in? I'm trying to keep faith in the long term.
  14. satellitedriver

    satellitedriver Moderator Staff Member

    I buy UPS stock weekly, through DESPP,even with the new changes.
    Never have I made it a core investment in my portfolio.
    It is more a piggy bank stock for me.
    When I retire, I fully intend to sell and just piss off that money on some extravagance.
    Maybe, that extravagance will be spent on food and shelter in my elder years.
  15. brownmonster

    brownmonster Man of Great Wisdom

    I have no doubt my UPS stock will be :censored2: away on my children.
  16. tieguy

    tieguy Banned

    Do monsters have children?:happy-very:
  17. wily_old_vet

    wily_old_vet New Member

    Sure the stock market has sucked in the past year but for those who got out of the market the first couple of months this year the market is up over 20% the past 6-7 weeks. Now you can buy back what you sold at a much higher price.
  18. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    LOL ... know that feeling!
  19. Ms.PacMan

    Ms.PacMan Well-Known Member

    The low for UPS on 3/9 was $38.30 and it has gained nearly 34% since then! It has come down a bit since we missed Q1 earnings - time will tell if the stock retraces to the March lows but I doubt it.

    Heck no! I've been buying stocks like crazy the last month. I only wish I had been more aggressive but hindsight is 20/20.

    Getting ready for the Spring Break cruise I noticed that Royal Caribbean had gone down to $5 a share and for me, the race was on to get in. It has felt like the bull race in Pamploma (pun intended).

    I am up 31% - for now but even if we hit the same lows again later this year I still got in at a low and will wait it out.

    Sadly, that's how recessions end, with capitulation. Retail investors then get left in the dust when institutional investors swoop in and buy, buy, buy at rock bottom prices.

    Even if a person has to suck up buying something back for 20% more - it's better than waiting until 80% more - no?

    So whose buying stocks like me and what are you buying?
  20. mathematics

    mathematics New Member

    I'm curently buying INFN, MKL, UNH, COST, IPGP. I'm Also taking $250 per month (being I am pain once per month as a supervisor) for DESPP. I also take advantage of the self managed account within the 401(k) and have been buying the above mentioned stocks in my 401(k).

    As far as playing around, I'm having some options fun with CCJ, INTC, and GTI writing various puts and calls.

    I still live at home, so I'm making the most out of my money saving and investing.