Post a New Topic
Original post made
on Jul 11, 2012
Change financial advisors & tell us who gave you the bum advice so the rest of us can avoid that source.
This article is laughably lacking in the details a reader or taxpayer would want:
"but by the time selling restrictions were lifted, the stock had plunged in value, Councilman Ted Driscoll told the Almanac." what and when were the selling restrictions and when did the value plunge? 4 years is a long time since receipt.
"The town didn't need the cash and was advised to hold the stock" advised by whom?
Any one who has taken the most basic investing class knows the concept of a diversified portfolio, commonly known as "don't put all your eggs in one basket". They basically became gamblers in the market at that point. What could they possibly stand to gain from that approach? Who is responsible for oversight? Did the Town buy any Facebook stock?
Also re: naming rights, if the donor gave $2.3M of stock in exchange for naming rights, then they deserve naming rights. It isn't their fault that the Town gambled away the value subsequent to transfer (unless the value had plunged prior to the first opportunity to sell).
Wow, very disappointing when our community can benefit. First the PV school finances compromised and now the town finances compromised. Lets pull together to ensure this won't happen again! Lets get 3 opinions from financial planners in the future.
The responsibility of the Town is to SELL the stock immediately upon receipt. Forget anyone's opinion on the matter, that is called speculation which has no place in this matter. You accept someone's generous donation and then watch it evaporate because you THOUGHT the stock would go higher??? Unforgivable.
Duh !! Embarrassed, yeah.
GREEDY is a more appropriate title for the town.
Unfortunately this article does a poor job of answering a few basic and relevant questions, like: what was the first date that the stock could have been sold? And did the selling restrictions prohibit the town from purchasing put option protection?
the donor gifted the stock in good faith - naming rights shouldn't be denied because of poor management of the money
"Common sense" is absolutely correct. You would think that Portola Valley's elite, with their proximity to the private equity firms on Sand Hill Road would know that.
When a private portfolio company of a venture firm goes public, they almost always distribute the stock to their limited partners immediately and value the asset at that price. The reason is that they (as PRIVATE equity managers) are no more qualified to manage a PUBLIC company stock than you are (much less, a city like Portola Valley). The newly public company stock may go up or down - and that gain or loss is attributed AFTER the distribution.
The person or entity that "donated" this stock to the city probably won big time because they likely received the fully appreciated value as a tax deduction. Portola Valley, on the other hand, gambled and lost.
Don't miss out on the discussion!
Sign up to be notified of new comments on this topic.
Post a comment
Posting an item on Town Square is simple and requires no registration. Just complete this form and hit "submit" and your topic will appear online.
Please be respectful and truthful in your postings so Town Square will continue to be a thoughtful gathering place for sharing community information
We prefer that you use your real name, but you may use any "member" name you wish.
Select your neighborhood or school community: * Not sure?
- Atherton: Lindenwood
- Atherton: Lloyden Park
- Atherton: other
- Atherton: West Atherton
- Atherton: West of Alameda
- Menlo Park: Allied Arts/Stanford Park
- Menlo Park: Belle Haven
- Menlo Park: Central Menlo Park
- Menlo Park: Downtown
- Menlo Park: Fair Oaks
- Menlo Park: Felton Gables
- Menlo Park: Linfield Oaks
- Menlo Park: Menlo Oaks
- Menlo Park: other
- Menlo Park: Park Forest
- Menlo Park: Sharon Heights
- Menlo Park: South of Seminary/Vintage Oaks
- Menlo Park: Stanford Hills
- Menlo Park: Stanford Weekend Acres
- Menlo Park: Suburban Park/Lorelei Manor/Flood Park Triangle
- Menlo Park: The Willows
- Menlo Park: University Heights
- Portola Valley: Brookside Park
- Portola Valley: Central Portola Valley
- Portola Valley: Ladera
- Portola Valley: Los Trancos Woods/Vista Verde
- Portola Valley: other
- Portola Valley: Portola Valley Ranch
- Portola Valley: Westridge
- Portola Valley: Woodside Highlands
- Woodside: Emerald Hills
- Woodside: Family Farm/Hidden Valley
- Woodside: Kings Mountain/Skyline
- Woodside: Mountain Home Road
- Woodside: other
- Woodside: Skywood/Skylonda
- Woodside: Woodside Glens
- Woodside: Woodside Heights
- Woodside: Woodside Hills
- Belle Haven Elementary
- Corte Madera School
- Encinal School
- Hillview Middle School
- James Flood Magnet School
- La Entrada School
- Las Lomitas School
- Laurel School
- Menlo-Atherton High School
- Oak Knoll School
- Ormondale School
- Willow Oaks Elementary
- Woodside High School
- Woodside School
- another community
Verification code: *
Enter the verification code exactly as shown, using capital and lowercase letters, in the multi-colored box.
Teavana Palo Alto closes
By Elena Kadvany | 4 comments | 2,001 views
USA - United Stuffed of America
By Laura Stec | 2 comments | 1,751 views
Sometimes the Rules Go Out the Window
By Cheryl Bac | 5 comments | 1,391 views
Home & Real Estate
Shop Menlo Park
Send News Tips
Circulation & Delivery
Palo Alto Online
Mountain View Voice
© 2015 The Almanac
All rights reserved.