Originally Posted by
newarkblows
its not a contract but an agreement that can be broken. and stock repurchase plans are generally bad deals.
Generally bad deals? Are you joking? Where on earth did you hear that? Generally speaking stock purchase plans are fantastic ideas for the the employees.
They take the average price not the lowest for the previous quarter and give you your discount off that.
Says who? Are you speaking from what XJT does? My sister and borther-in-law are both white collar at IBM and they purchase at a percentage below the lowest price over that time period. Unless things have changed, or I was told incorrectly, at SKYW I was told just like I stated above. Able to purchase at 15% below the lowest price for that 6months with up to 15% of your paycheck.
Why would you want to 1)invest in an airline and 2)invest in your own airline?
1. Because it's an instant 15% you can sell off once the time has expired or hold if the value has increased. 2. Not all airlines are doomed.
If your company goes belly up you are out of a job and out $$$ from a poor investment. It is not smart to put money where your paycheck comes from.
No company goes belly up overnight. Not LEH, WM, and not XJT. Each company is different and in XJTs case I would not have exercised the option. Take a look at a graph to figure out why. If I worked at SKYW I would. If I worked at Wal-Mart, Bank of America, Apple, IBM, RAH, etc. I would. When times are tight that's the best time to enter the game. As Buffett said, "Go where the agony is".