I recently started to work for a small-cap, bordering on large cap (depending on your definition). It has significant market share and has done fairly well throughout the last year, though it has still had to do some restructuring. Outlook is promising, but not spectacular.
They offer 50% employee matching on stock, and I took the lump sum option, with the intention of pulling out my portion of the money immediately after the initial deposit for investment purposes elsewhere. The idea is that it basically gives me free stock in the company.
Since the stock was purchased two months ago @ $7.02, the price dropped and has hovered between 6.7 and 6.9. In the few months prior to my purchase (of course) the price fluctuated between $7 and $8.5. As I said, the company outlook is promising, so I don't expect a significant/permanent drop, but of course I could be surprised
My dilemma is: should I wait just a bit longer to see if it rises to (or above) 7.02, or should I should just take my lumps and sell immediately? Former is obviously the risky option, and I'd hate to lose out if the stock jumped up after my sale. On the other hand, maybe this is just "loss aversion" behaviour rather than rational thinking.
(Note: I will not have any capital gains this year to offset the loss as my investments are all in RSPs. Though I believe that I can use the loss in future years?)