AVGO $830*0.252=$209.16
VMW =$142.5
($142.5+$209.16)/2=$175.83
6 replies (most recent on top)
All good points: also, the experts predict an upcoming market reset where most stocks will decline from their recent highs. So those holding on to stock may actually be ones 'leaving money on the table', by not selling now while the window of opportunity is open.
"Hopefully your RSU’s were long term for capital gains tax."
Yes, of course, most were long-term. For my tax situation, recently quit VMW, it was beneficial. Better to take cash now and invest in Tax Free muni assets. So, do your homework before you decide.
“I sold all my available RSUs this morning at $162+ when the market opened.”
Hmm that may have been a bit premature and you left money on the table. Hopefully your RSU’s were long term for capital gains tax. If not you’ll be burned by taxes. My understanding is VMW stock is valued around $180ish. Given we have a 50/50 split I still think you would be better off getting the $142.5 for 50% and hanging on to the AVGO stock for 12 months and hope it goes up even more in a years time and pay lower taxes on the proceeds.
Makes sense. The market could downgrade AVGO post transaction, due to the $Billions of assumed debt to close the deal. However, the stock may recover after all the upcoming layoffs reduce to cash burn rate, and eventually improve profitability over time.
I sold all my available RSUs this morning at $162+ when the market opened.
My situation: much better ROI than converting VMW to fractions of AVGO stock offered.
:-(