Need advice about selling stock

[tomkat]

I need some advice. I hold 100 shares of stock in EDS. I've had this stock for a while. Lately, the stock price has been hovering around the $23 range. Back in the day the stock used to average between $35 and $58 per share (the highest being $72/share in 2001), but in the last few years EDS has been battling problems that made its stock plummet to as low as $9/share. Seems like now it's trying to rebound, but I don't know if it'll ever get as high as it was. Last I checked, all of my shares were worth close to $3000. Should I:

A. Hold on to the stock a while longer;

B. Sell the stock and put the money into an IRA;

C. Sell the stock and put it in one of my savings accounts (one account has 3.5% rate, the other account has 4% rate);

D. Sell the stock and pay off my credit card (the balance is currently $2400 at 0% interest until Feb 2006. I'm currently paying $50/month on the balance, so by Feb it should be down to $2250).

Your input is greatly appreciated!

[JBinKC]

Question to ask you what do you think the future earnings growth rate at EDS will be? If the answer is zero or negative or if you have no clue then you have the answer what you should do with the stock. Owning stock requires lots of homework to make money. If you are not willing to do it there is no reason for you to own individual stocks.

Assuming you sold EDS I would keep the revolving the money in 28 day treasury bills until the zero percent deadline expires then I would pay off your debt in full. You will have enough money to keep $2000 tresury bills revolving and you can do it online at treasurydirect.com. Hope this helps.

[weiwentg]

there are a number of free sources on the net you can check info on stocks. here's MSN Money's stock rater: http://moneycentral.msn.com/investor...asp?Symbol=EDS

I have no experience with how well the stock rater does in the long run, though. Morningstar has a subscription service, and they do cover EDS. Morningstar tends to think in the long haul for buying stocks. I can't give specifics, but they assign EDS a poor stewardship grade (excessive exec compensation for one). they think EDS has made a decent turnaround, but would only buy at a discount to their calculated fair value. Morningstar gives you a free two-week trial: www.morningstar.com. don't treat this as advice to buy or sell, treat this as advice on where to do your research.

[PRICEPLUS]

Unfortunately the time to sell was when it started dropping through the floor. Hindsight is always 20/20 though. "I" would sell and pay off the credit card debt. That is just "my opinion" and you should do what is best for you.

Do you see this stock doubling or tripling over the next year? In the end you should do what you think is right!

[tomkat]

Originally Posted by tomkat

I need some advice. I hold 100 shares of stock in EDS. I've had this stock for a while. Lately, the stock price has been hovering around the $23 range. Back in the day the stock used to average between $35 and $58 per share (the highest being $72/share in 2001), but in the last few years EDS has been battling problems that made its stock plummet to as low as $9/share. Seems like now it's trying to rebound, but I don't know if it'll ever get as high as it was. Last I checked, all of my shares were worth close to $3000. Should I:

A. Hold on to the stock a while longer;

B. Sell the stock and put the money into an IRA;

C. Sell the stock and put it in one of my savings accounts (one account has 3.5% rate, the other account has 4% rate);

D. Sell the stock and pay off my credit card (the balance is currently $2400 at 0% interest until Feb 2006. I'm currently paying $50/month on the balance, so by Feb it should be down to $2250).

Your input is greatly appreciated!

Thanks to those who've responded thus far!

I forgot to mention that I do have the money already to pay off the credit card, I'm just letting it accrue interest in my savings account until February. I'm not dependent on the potential sale of the stock to pay off the credit card, that money would just be extra money. Don't know if this info is an essential factor in determining your advice, but I'd thought I'd mention it.

[BAGAGT1]

At what price did you buy the stock at (average)? Right now, EDS is trending high above it's 200 day moving average, so it is in an uptrend.

[jmjj215]

It's funny because for an analysis class I had last semester I chose EDS as my company to evaluate. My final project recommendation was to hold Take that for what it's worth of course, we all know that "holding" a stock is another way for an analyst to say, "I'm not sure..."