ShareSave - Buying DSGi Shares - Yes Or No?

baileywin

Preface - I'm 17 (nearly 18 - 1 month to go) and working for DSGi. I plan on going to Uni in September, but have some cash saved away. Not sure how long I will keep my current job.

I have been told that ShareSave will come back in soon - which (from reading previous years blurb) seems to be that I pay £x from my salary each month into a pot, which is given around 4% interest by Halifax. After 3 (or 4) years, I have 3 options - take the cash, take the shares at their CURRENT market value with a 20% discount or a mixture of both.

I have faith in DSGi, but even if the company collapses theres no real risk to me as I can always have the cash in cash - it seems like a good idea (to me at least), although the only problem is I'm concerned about a (for me, at least) relatively long term investment when money will be tight for me...

Current share price for DSGi is £0.235 per share - which means in 3 years time I will be able to buy them at £0.188 per share if I choose.

I expect DSGi's shares to recover (although I feel gutted for those who bought into the scheme 2 years ago at £1.12 per share...), but even if they don't then it's of no real consequence.

I work part time (at the moment) and take home roughly £270pm + overtime / bonuses. As such, the amount I could actually give is small - maybe £20 or £30 per month.

Would it be a good idea, and is there anything I need to be aware of? If DSGi go under, do I lose my money?

opinions4u

baileywin wrote: »

Preface - I'm 17 (nearly 18 - 1 month to go) and working for DSGi. I plan on going to Uni in September, but have some cash saved away. Not sure how long I will keep my current job.

If you leave DSGi then you can close the Sharesave account and walk off with your money.

I have been told that ShareSave will come back in soon - which (from reading previous years blurb) seems to be that I pay £x from my salary each month into a pot, which is given around 4% interest by Halifax. After 3 (or 4) years, I have 3 options - take the cash, take the shares at their CURRENT market value with a 20% discount or a mixture of both.

Sounds about right (I think the 4% interest is a bit lower now and it's usually 3,5 or 7 year options). Given your uncertainty about employment I'd go for 3 years.

I have faith in DSGi, but even if the company collapses theres no real risk to me as I can always have the cash in cash

Correct. Your cash is in the Halifax, not the shares.

it seems like a good idea (to me at least), although the only problem is I'm concerned about a (for me, at least) relatively long term investment when money will be tight for me...

You need to balance that carefully. That said, would Mum or Dad be able to chip in if times got really tough? Talk to them!

Don't forget you can also miss up to 6 monthly payments, as long as you can make them up at the end.

Current share price for DSGi is £0.235 per share - which means in 3 years time I will be able to buy them at £0.188 per share if I choose.

And if the shareprice is lower than £0.188 then take the cash. Heads you win, tails you break even.

I work part time (at the moment) and take home roughly £270pm + overtime / bonuses. As such, the amount I could actually give is small - maybe £20 or £30 per month.

Again, would Mum or Dad consider backing it up to the maximum (£250pm?) and then use the proceeds to pay for the final year of your university course?

Would it be a good idea

Yes.

and is there anything I need to be aware of?

You've more or less covered it.

If DSGi go under, do I lose my money?

No. It' Halifax (or rather Lloyds Banking Group) who hold your money. If you did buy the shares at the end of the 3 years then they became worthless then you'd lose money. Most take the shares, sell them quick and stick the proceeds in a nice savings account!

Thrugelmir

baileywin wrote: »

Preface - I'm 17 (nearly 18 - 1 month to go) and working for DSGi. I plan on going to Uni in September, but have some cash saved away. Not sure how long I will keep my current job.

I have been told that ShareSave will come back in soon - which (from reading previous years blurb) seems to be that I pay £x from my salary each month into a pot, which is given around 4% interest by Halifax. After 3 (or 4) years, I have 3 options - take the cash, take the shares at their CURRENT market value with a 20% discount or a mixture of both.

I have faith in DSGi, but even if the company collapses theres no real risk to me as I can always have the cash in cash - it seems like a good idea (to me at least), although the only problem is I'm concerned about a (for me, at least) relatively long term investment when money will be tight for me...

Current share price for DSGi is £0.235 per share - which means in 3 years time I will be able to buy them at £0.188 per share if I choose.

I expect DSGi's shares to recover (although I feel gutted for those who bought into the scheme 2 years ago at £1.12 per share...), but even if they don't then it's of no real consequence.

I work part time (at the moment) and take home roughly £270pm + overtime / bonuses. As such, the amount I could actually give is small - maybe £20 or £30 per month.

Would it be a good idea, and is there anything I need to be aware of? If DSGi go under, do I lose my money?

Simply put. Most employee share schemes are worth the punt. As you can't lose your money.

Only pay in what you can afford to without thought.

currently_poor_peter

Hi
I work for DSGi as well and I am in the current share scheme. It is unlikely that when it comes to an end the shares will still be worth buying but my money is safe and I cant loose. I will probably start a new scheme when it launches later this year as its a ggod way of saving as its taken at source so you dont miss it.

Incidently its my belief, judging by the way the company is being run and the lack of stock in stores that the firm will not survive much longer:eek:

sabretoothtigger

Some of the markups are massive, covers alot of mistakes I suppose though the sector must be in decline surely

sharesave generally seems to be a good idea afaik

baileywin

currently_poor_peter wrote: »

Hi
I work for DSGi as well and I am in the current share scheme. It is unlikely that when it comes to an end the shares will still be worth buying but my money is safe and I cant loose. I will probably start a new scheme when it launches later this year as its a ggod way of saving as its taken at source so you dont miss it.

Incidently its my belief, judging by the way the company is being run and the lack of stock in stores that the firm will not survive much longer:eek:

I'd disagree - I can see the business continuing (even if Fives is beyond awful) because if the worst comes to the worst they could sell the bottom 50% of stores and be making a lot more money.

Either way theres no real risk to me.

I did my account today (well, yesterday...) and have setup it to pay in £15pm. All I can afford, which i'll admit is beyond pitiful...

EDIT - How are DSGi making £ out of this? It seems unlike them to do something which only benefits their employees - while they must get commission from getting money into a savings account for up to 3 years, this can't outweigh the risk they have of offering potentially a huge discount on shares? Or is just one massive bet on the companies share value falling?

alared

Well I wouldn`t rely on DGSi shares going anywhere because it seems to me everything they sell can be bought cheaper elsewhere.
A bit like Woolworths!

As regards to the sharesave scheme if at the time of maturity,the share price is lower than the option, you don`t buy them.
I can remember a few months ago when HBOS hit the rocks,some guy who had worked there for donkey`s years and had loads of sharesaves he`d changed into shares totalling £100k.
When HBOS buckled,he lost almost everything he`d spent years saving for.

http://www.scotsman.com/latestnews/HBOS-workers-lose-millions-in.4935021.jp

sabretoothtigger

Well they can sell them straight away afaik and if you keep them then you join the speculators or investors like everyone else but most should sell immediately

Issuing cheap shares doesnt cost dgsi, it costs the current shareholders afaik

They arent a budget chain, some of their markups would make a drug dealer jealous. I guess that makes them vunerable but its upto them to provide a brand of something unique.

Technology is not a bad sector, they can constantly advertise sales thanks to moores law since their absolute costs are constantly falling its no lie.

I'd rate them over many other types of retail but their main threat is other retailers like supermarkets treading on their toes and of course online but that is a separate demographic still and will be for many years to come imo



Is 15 pcm fixed or can you increase that if you have enough left over one month, its better then nothing. If you were saving up for something big this is where you should put it imo since the bonus at the end could be massive, like doubling your money maybe

safc118

to be fair its the best thing that you can do at the moment

18p a share they are just under double at the mo

DSGI shares are extreamley undervalued at the moment and 12 of 16 different brokers have reccomended them as a STRONG BUY (according to barclays BARX trading account)

The company is selling off its excess luggage (small high street shops that have ran out of the leasehold) and they are investing in their best performing stores (like junction 9 the currys and pc world store in one)

in terms of the products that they are selling their main business is TV's with 3'D tv due out soon and OLED tv there is so much technology out there and when new tech is released the margins are high

Only problem that DSGI may face is the introduction of BESTBUY however this is in early stages at the mo as they have plans for 4 stores for deffo at the moment. However the management we have in at the moment is the best ever! look at peak sales DSGI was up L4L and kesa (comet) was down DSGI bucked the market trent:money: