I still have several hundreds shares in the company that I currently work for. These are the remnants of all the partially vested stock awards I received throughout the years. The vesting periods were all cut short due to various layoffs I suffered. Yet the remaining amount of shares are still substantial.
EA’s stock has been doing incredibly well since mid-October of 2014. As some of you might remember, as stock began to rise, some of my shares became valuable again. I sold all my ESPP shares that were essentially worthless at the point where I was able to break even. As I reveled in the joy of getting my money back, even Steven, the stock continued to climb. It’s now at around $64 a share, coming close to the historical high of $68, where it was sometime in 2005.
My strategy with these shares was to hold onto them until the day I really needed the money. Since I’ve never needed to liquidate that much of my assets, the shares remained in my portfolio. Current events, however, are making me re-think my strategy, even without a real need for this cash. First, the stock price, like I mentioned previously, is trending higher and higher. It’s been like this for a few quarters now. Wall Street is really liking what EA’s financials look like. If this continues and there is no apparent reason why it wouldn’t, it’s possible that the stock price could eclipse the all-time high of $68.
The second compelling reason to sell now or very soon, is the value of the US dollar compared to the Canadian one. Currently, 1 US dollar is worth 1.25 Canadian dollar, which makes it favourable to have US dollars if you’re doing anything in Canada. These shares will be sold in American dollars and the proceeds will be awarded to me in American dollars as well. Stock price notwithstanding, I automatically get a 25% bonus for selling now compared to the beginning of 2013, when it was last at par. Imagine that, an investment increasing in value by 25% in two years! That’s pretty good right?
So, that’s why I’m thinking about selling very soon. The stock price could slip again or the Canadian dollar could go back up. If I didn’t sell, I could be in for some regret.
On the other hand, these things are unpredictable. What if the stock price continues to rise? Or the Canadian dollar continues to slide? What if both of these happens? My shares could be worth even more a few months from now.
These shares have never been this valuable. Do I let it ride or cash out now while things are good? Someone tell me what to do??!?!!