Hey guys,

I was introduced to the Motorola Stock Purchase Programme for Moto employees in Penang. It seems that we get to buy the shares at a 15% discount of normal price.

But my question is this: Stocks are sold in USD and we are paid in RM; what happens to the forex charges to change our money into USD to purchase the stock and when we sell it in USD we have to convert back to ringgit?

We have to pay the conversion rate twice?

Thanks.

Basically, your contribution to the programme will be converted in USD equivalent at the rate specified by the fund house.

Then, the fund house will buy MOT at the discounted price and it'll be turned to equivalent acquired shares.

If you sell it later, your transaction will be still in USD. Upon matching your selling price, the money will be placed in your trust account until you cash out.

Once you cash out, they'll send you a cheque or wire transfer (depends on your preferred method) in USD.

Your local bank will impose financial charges (if applicable) to convert the amount in USD into RM.

So do I have to pay for the spread (changing from RM to USD-buy sell difference)?

Edit: Thanks. I forgot to thank you in my haste.

This post has been edited by kaiserwulf: Dec 16 2008, 09:59 PM

I believe the forex rate provided by the fund house should have factored in that.

since can get discount, why so care about exchange rate?

i believed ur HR shd have explaining the mechanism of the stock purchase program.

Thats because my friend at Moto was mentioning the plan to me; chatting about company benefits. I asked him about charges for the exchange rate and he was unsure.

@vin_ann: I do not understand the intent behind your post. If you are an employee of Moto or ex-Moto, then please feel free to share.

i bought before ... not from motorola but other MNC ...

as usual, the charge is the brokerage fees and other misc fees ... and when they TT to your local account, the local bank will impose some minor fees as well ...

Bare in mind only employee of the company is eligible for the stock Purchase Programme or ESOS (locally called).

15% discount of normal price <---- what is the normal price? which is the most important that your friend has to find out. Everyday share price is changing. Some may use a particular average price for the period to determine the price then only discount 10 or 15%, which by now might be more expensive than buying from market as share price generally had plunged quite significant for these few months time.

I believe the normal price for "15% discount of normal price" might be referring to the price when they buy for you.

The monthly contribution forex rate should be using the rate when the conversion is done from MYR to USD; meaning every month has different rate especially MYR-USD fluctuates violently.

I might be wrong; don't flame me.

Yes you have to take into account both buy and sell price. they'll accumulate all your money and convert it at the end of the period and there's another conversion + commision + tt charge when you sell it.

A lot of people got hit as well recently as the share price dropped 50% within 3 days after releasing the stocks. A lot of motorolans lost money even with the 15% discount.

This post has been edited by Drian: Dec 17 2008, 02:04 PM

actually is monthly deduction of base salary which is from 1-10%, and they will accumulate up to 6 months, then at 6th month, the last day, let said 31/10, they will sum all the 6 months money, let said RM3k, and convert to USD, the rate is follow that day, and then will determine how many units you entitle.

the market price also is the price at the closing time of 31/10 ... let said 40, then 15% discount, means they buy for you at 34 ...

This post has been edited by clsiluf: Dec 17 2008, 02:57 PM

there should be a feature where if the stock price drops below 15% you don't have to buy it. In that case, you don't even pay once for any exchange.

hello!
I am an ex-motorolan.

What mentioned by mtsen is not MOT Share.

Motshare: You are buying a portion of the share (pooled by all employee). But the process is, HR help u to save up ur money for a dedicated time frame of 6 months and HR only going to purchase the MOTshare after 6 months. They will choose the price on either the 1st day or the last day of the time frame, whichever price is lower. This is tricky because at that time, we all tot they will buy the lowest price throughout 6 months.

Anyway, I'm happy because I actually gained profits from buying & sharing Motorola Share. However those that bought it at my time frame (last year) and didn't manage to sell it, they are bearing losses now. At the time when i bought share, it is USD17+ after discount and i manage to sold it at USD19.20. However, there are a few buddies of mine planning to kept their share when they leave the company. It is only worth USD4.41 now.

This post has been edited by ohserena: Dec 18 2008, 04:06 PM

Motorola stock purchase plan are the same as Agilent and Intel. You buy the stock at 15% discount. A lot of people participate in it and do a quick sale. So, you will earn 15% immediately. But don't forget about the comms, forex and also tax.

Personally, I don't think it's a worth even with a quick sale.

Why not worth ? So far many people do this and still making money.

i think it's a good buy NOW coz analysts' target is 5.50

see if mot penang is getting more orders vs. alot of china's factory closing end of this yr coz of US' trouble

abt quicksale.. i tot the plan require u to hold for a few mth b4 u can sale?