Asda share saver scheme

Pikeman1

Hi the wife is in Asda share saver scheme. Shares in Walmart. Because Walmart has changed ownership the scheme is coming to an end and she must decide what to do. 
Exercise sharesave options now and keep walmart shares
Exercise your share shave options now and subsequently sell walmart shares.
Cancel and withdraw now. Exit the shares save scheme do not exercise my options. Return the savings I have made to date. 
She really would just like to cash them in. The last option would probably be best would she lose out on any gains the share have made. Tia 

Marcon

Pikeman1 said:

Hi the wife is in Asda share saver scheme. Shares in Walmart. Because Walmart has changed ownership the scheme is coming to an end and she must decide what to do. 
Exercise sharesave options now and keep walmart shares
Exercise your share shave options now and subsequently sell walmart shares.
Cancel and withdraw now. Exit the shares save scheme do not exercise my options. Return the savings I have made to date. 
She really would just like to cash them in. The last option would probably be best would she lose out on any gains the share have made. Tia 

She'll only get back her own savings from the sound of it, so yes, she would lose out on the opportunity to cash in on any gains.

maxsteam

Just a small correction. Asda used to be part of the Walmart group and now the business is part of another group. Ownership of Asda has changed. Ownership of Walmart has not changed.

The price of Walmart shares is currently around US$136 (the price may be slightly different when markets resume next week). I expect that you have the option to purchase them at a discount to this. If you can buy at a discount, you should do so. It's likely that you will not need funds to buy the shares if you are going to sell them immediately after exercising the option.

If you have the option to buy the shares at less than the current market price you should definitely not ask for the savings to be withdrawn as it sounds like you would lose out on the gain in the value of the investment.

Sun-Is-Fun

Why don't you use that money you put into the share scheme and start a personal pension (SIPP) instead if you haven't got one? Every £80 you put in gets you an additional £20 free from the goverment making it £100. You can pay up to your yearly earnings to earn the tax relief.

Vortigern

Option 1 to exercise the option and hold the shares is not a good idea. If you had the cash, would you be buying Walmart shares? Probably not, and neither would I. You would be at risk of the share price falling.

Option 3 to cancel the share save and get your money back wouldn't be my choice as you'd give up any gain already made.

Which leaves option 2 to exercise the option and immediately sell.  Subtract your option price from the current share price and multiply by the number of shares you could buy.  That's the gain you'd lose with the other two options. Look carefully at the details you've been sent. There may be an easy option to sell those shares just by ticking a box. Otherwise you need to ask how to sell Walmart shares.

Carrot007

Vortigern said:

Option 1 to exercise the option and hold the shares is not a good idea. If you had the cash, would you be buying Walmart shares? Probably not, and neither would I. You would be at risk of the share price falling.

Option 3 to cancel the share save and get your money back wouldn't be my choice as you'd give up any gain already made.

Which leaves option 2 to exercise the option and immediately sell.  Subtract your option price from the current share price and multiply by the number of shares you could buy.  That's the gain you'd lose with the other two options. Look carefully at the details you've been sent. There may be an easy option to sell those shares just by ticking a box. Otherwise you need to ask how to sell Walmart shares.

OH did option 2. And predictibly given the mass sales at the earliest oppertunity the shares droppped $10!. OP really go with option 2 (there are no option prices lower than current price), you should end up with a better deal now given most people are either leaving or sticking to the end date, meaning no stock dumping issues.

Pikeman1

Many thanks for the replies  think option 2 is the way to go. Only got till august to decide then its option 3 only. Once again thanks for taking the time to reply.

maxsteam

Sun-Is-Fun said:

Why don't you use that money you put into the share scheme and start a personal pension (SIPP) instead 

Because the value of the options is likely to be more than the money that was put into the share scheme. 

Pikeman1

I do have a sipp plus various stocks and share isas with hl and vanguard. Opening a sipp for my wife is an option but so he only works part time so what she can put in will be limited.