My company EDS have just allow employee in Malaysia to join their stock option program to buy the stock at a 15% discount rate. But my worry is the latest analyst report is not so good for the stock. we can put up to 10 percent of our monthly salary into this program, is it a good idea to buy? need you guys opinion on this

http://investing.businessweek.com/research....asp?symbol=EDS

I think its good to join stock option if you think the price range gonna fluctuate around that range.
Though recent analyst report that the present is not that good, do you think that your company's business could get better for the next few quarters? Or the business doesn't have a direction that may affect the price in the near future. As you work in the company you may know more things that's happening than outsiders. Good to enjoy the 15% if price is stabil.

the company have gone through tough time since 2003, but these two year it is getting better and profit have grow, it is going well until July the stock suddenly drop and never recover.

It is listed in NYSE, right?

You need to look at what price it is being offered, as if the stock option program price is higher or on par with the market price, it is not worth it. One might as well buy directly from the market whenever they wish.
Only buy when the stock option is significant cheaper than market price.

The idea of stock option is to let employee making money through holding the shares. If market price is lower than the stock option price, I find no reason to exercise or subscribe it.

Just my taught, you should know better your company than we do. So judge your own. But remember you need to look at broader picture on the mother company front. Even the business in Malaysia is good does means the parent company overall is good. So need to look at the whole picture and company prospect. Generally, share price will follow its fundamental and profitability level accordingly especially for a matured market like NYSE.

Not meant to recommend or suggest anything.

This post has been edited by cherroy: Jan 2 2008, 03:12 PM

The price is 15% discount of market price, and we need to hold a year before selling. Just found that the 15% different will be taxed . Also need to take into account the movement of USD .

What I meant although the stock option is 15% discount of the market price, but when they will take the market price as reference, USD28 (few months ago) ? USD 20 (currently). There should be a price for that, a simple statement of 15% discount of the market price is not giving any clue or clear picture, should find out about it.

Stock option has a price of it, generally company will give 10-15% discount of the market price for employee stock option which the market price is taken as 5-10 days average of market closing price (I don't know how many days or how US counterpart do, at least in Malaysia it is done in this way) of a specific period.