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Author: Meyer4 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308882  
Subject: Debt -vs- Investment Date: 3/30/2000 11:31 AM
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Situation:
I am out of debt, at least I will be in a few months.
I have a chance to purchase stock with the company I work for. The company is set up to eather be bought or go IPO within the year. The company has stated this before a year ago. This time it looks more promising.
A lot of work is going into getting the paper on line but the product is still young and not proven.
$7,000 buys me 5,000 shares. I would have to borrow more than half the money to do this.
Question:
should I go in debt to take a chance on an IPO. A buy out is forcasted at $40 a share and an IPO at $20.

Please advise soon
Meyer4
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Author: SailDi Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 30764 of 308882
Subject: Re: Debt -vs- Investment Date: 3/30/2000 12:11 PM
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<<I would have to borrow more than half the money to do this. Question: should I go in debt to take a chance on an IPO. A buy out is forcasted at $40 a share and an IPO at $20.>>

Meyer4,

I understand the desire for a quick buck... BUT... The stock market is never a "sure thing." My recommendation is buy what you can with the money you have. Do you have to buy 5,000 shares? What is wrong with only 2,000 shares if that is what you can afford? If you buy the stock with borrowed money and it takes a dive... what do you do then? You are nearly out of debt. (I congratulate you for that!!) Keep it that way!


Just my $0.02

Diana

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Author: Meyer4 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 30775 of 308882
Subject: Re: Debt -vs- Investment Date: 3/30/2000 12:40 PM
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Thank You Daina!
The owner wants to deal in 5,000 share blocks. That will not change.
Your 2 cents of advise will return me and others many times.
I am leaning away from the venture but will wait for more responses. Talk about being uncommitted.
Meyer4
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<<I would have to borrow more than half the money to do this. Question: should I go in debt to take
a chance on an IPO. A buy out is forcasted at $40 a share and an IPO at $20.>>

Meyer4,

I understand the desire for a quick buck... BUT... The stock market is never a "sure thing." My
recommendation is buy what you can with the money you have. Do you have to buy 5,000 shares?
What is wrong with only 2,000 shares if that is what you can afford? If you buy the stock with
borrowed money and it takes a dive... what do you do then? You are nearly out of debt. (I
congratulate you for that!!) Keep it that way!


Just my $0.02

Diana

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Author: TMF2Aruba Big funky green star, 20000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 30805 of 308882
Subject: Re: Debt -vs- Investment Date: 3/30/2000 4:49 PM
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Situation:
I am out of debt, at least I will be in a few months.
I have a chance to purchase stock with the company I work for. The company is set up to eather be bought or go IPO within the year. The company has stated this before a year ago. This time it looks more promising.
A lot of work is going into getting the paper on line but the product is still young and not proven.
$7,000 buys me 5,000 shares. I would have to borrow more than half the money to do this.
Question:
should I go in debt to take a chance on an IPO. A buy out is forcasted at $40 a share and an IPO at $20.

Please advise soon
Meyer4


Hi Meyer!

No one can give you this kind of advice, and no one should. This is a decision that only you can make. From the information that you've given, it's impossible to really know whether this is an investment or a gamble.

What I'd suggest is that you sit down and think about what your real beliefs are in this company. You're an "insider" in that you work there and should have more insight than anyone outsider. Consider if you really are confident in the future prospects of the company, and of the resulting outcomes you're expecting. Decide on what would happen in various scenarios--what if the investment didn't work out as you expected. Could you afford to repay the loan? Would it cause you hardship?

Go with your knowledge, gut and instinct on this one, and good luck! : )

Tony
...but I still am...

Off2Aruba

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