Sharesave and redundancy

talby

Hi everyone

Please forgive my ignorance but I'm stuck to know what to do. I was made redundant from my company at the end of August. Prior to that I had been saving into the company sharesave scheme since July 2014, when the option price was £4.03 (20% below the market price at the time). The shares are now worth £3.35. I've been told I can exercise the share option anytime within 6 months from being made redundant, and in fact make up to 6 further monthly contributions of £250 per month. I expect the share price will continue to struggle over this period (it's a Big Petrol company). I'm very tempted to take the money saved so far and run (it's not much, only £3250) but the general advice seems to be to continue to make contributions. Am I making a bad mistake by just cutting out now ?

Thanks in advance for any help anyone can give ...

Talby

jamesd

While it's unlikely that the shares will recover enough to exceed the option price your best option if you can afford it is to continue buying until the time limit is reached. The money is protected by the Sharesave rules and if it does happen that they go up enough you'll make a profit.

talby

Many thanks for the reply - as you say it's protected so I'll probably carry on for 6 months, more in hope than expectation - I suppose it will stop me blowing even more of my redundancy money for now !

Regards
Talby