I am interested in whether people are thinking of joining up.
My thoughts are that the company doesn’t feel very stable, the morale is low and I’m not really sure if growing the company is the real long term plan of our leadership. I still believe that we will be broken up and sold off.
So, I was wondering if I’m an outlier here and if others are feeling more optimistic about Solventum’s future.
I am not participating simply because they hold all contributions for half a year before we get the stock, that sounds just like an interest-free loan to the company. I do expect the stock to rise a bit though due to the buyback recently announced.
It's more likely the rollout of this program signals a market top.
No
@ay Thanks for that walkthrough, as this works much differently. I didn't track that we accumulate a holding pool of funds like that. But otherwise we are on the same page. I'd guess 15% discount sold immediately nets maybe 8-10% (lose a third to short term gains taxes)?
@ac The program is different than 3M's. In 3M we purchased every month and had to hold for at least a year before selling. For Solventum, money comes out of our paycheck every month Jan->June but it goes into a holding account and then all of that money is used to buy stock in July at a 15% discount. As soon as the order goes through you can sell, there's no holding period (likely something like 3 days). Assuming on average the stock stays flat for those 3 days you'd get a 15% return. Yes you'd pay short term capital gains taxes on the 15% discount assuming the stock price didn't move in those days. If it lost money you'd pay less, if it gained you'd pay more.
So using a real life example let's say you contribute $500 a month from Jan to June and SOLV stock price is $100 a share in July 1 when it's used to purchase. You get to buy at a 15% discount so you'd get it at $85 a share so you'll have 35.3 shares. You're allowed to sell 3 days later. and the price dropped to $95 a share for a total of $3353.50.
If the price dropped to $95 a share you would earn and pay taxes on the $353.50
If the price stayed exactly at $100 a share you would earn and pay taxes on $530
You get to do this twice a year so it could end up being a free 1.5% raise.
@aa I thought for the 3M GESPP you had to hold for a year. Looks like you can sell Solventum stock immediately. What about short vs. long term tax impacts?
I expect you still pay tax on the gains including the discount if you sell before 2yrs? What do you think the after tax profit % to be when selling immediately?
I'm going to join but just to sell the stock a few days after the purchase for a 15% gain.
8 billion in revenue. 5 billion in debt even after Filtration was sold off. No dividend. And a cranky octogenarian on a Florida yacht running the company via a spreadsheet while texting orders to his 40 million dollar sock puppet. What could possibly go wrong?
Pass on the stock plan. What's left to eat after the pieces are sold off won't even satisfy Bryan's latest crony hire.