Looks like I'll sell my one share of TMUS

drnewcomb2

    I thought Stock Up was pretty cool when it was announced but now I'm getting e-mails saying if I don't do something my one share will be transferred to a new online company that will charge me a monthly service fee. I think I could transfer the one share to my investment broker but that's a lot of work for just one share. I'll probably just have Loyal3 sell it and pay taxes on the short-term gain. Too bad, I liked having that one share but then the other shoe dropped.

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      • Same here.  I'm not paying $5 a month or $15 a year.

         

        Link to the new terms and costs:

        https://www.loyal3.com/notice/tmus.pdf?_hsenc=p2ANqtz-903j4hFK2Y7MhBEO_10D7vrWqK0m64rVj02RowBHX3ndn3AGYkqWOr4QO27gYW8_Ki…

        • dragon1562

          definitely a pain in the neck

          • I can't help but to wonder if this was by design to get customers with idle shares to sell and get those shares into the hands of serious traders to boost the numbers a bit and spur more trading activity.

             

            Afterall. Non traders are more apt to sit on a stock and let it rise or most might even have forgotten about their handful of shares until they received the email notice.

             

            Add to to that the yearly fee is almost the amount that the stock increased since receiving it. So that would be a loss in itself back to original worth.  Or after a year of monthly fees you'd be down to nothing almost.

             

            Thats just my theory.

              • artart

                Re: Looks like I'll sell my one share of TMUS

                snn_555 wrote:

                 

                I can't help but to wonder if this was by design to get customers with idle shares to sell and get those shares into the hands of serious traders to boost the numbers a bit and spur more trading activity.

                 

                Afterall. Non traders are more apt to sit on a stock and let it rise or most might even have forgotten about their handful of shares until they received the email notice.

                 

                Add to to that the yearly fee is almost the amount that the stock increased since receiving it. So that would be a loss in itself back to original worth. Or after a year of monthly fees you'd be down to nothing almost.

                 

                Thats just my theory.

                Hi snn_555

                Without a doubt, charging "maintainence fees"

                to be able to hold a small amount of T-Mo stock is counter productive to the whole point of having customers own stock in the company.

                 

                Usually a person who holds stock in a company

                will endeavor to promote that company to his friends, acquaintances, and casual contacts. I thought that it was a brilliant idea on T-Mo's part to provide customers with single shares of stock. The cost of maintaining those shares should be born by T-Mobile as part of its overall marketing strategy. Charging customers fees to maintain their one or two shares of T-Mo is like charging a customer a fee in order to say to his friends, "I like T-Mobile so much that I own stock in the company".

                 

                Charging fees to own token or symbolic shares of T-Mobile stock,

                is counter productive to T-Mobile's overall growth strategy. Fact is T-Mo should have a stock option plan for customers, based on a customer's annual spending and length of service. Now that would be a worthwhile promotion that would tie customers to T-Mobile for life.

                 

                Someone at T-Mobile had a "brilliant idea" about how to make more money.

                "Lets charge fees" to continue to own "free shares" of T-Mo stock

                 

                The whole purpose of owning stock is to make money.

                If the value of a stock is going  to go down or the cost of owning the stock is going up, it is time to sell. As customers and former shareholders, we can then say, "I used to own T-Mobile stock, but it was no longer profitable."

                 

                Art

                • drnewcomb2

                  Re: Looks like I'll sell my one share of TMUS

                  A good idea with very poor execution. I can't imagine any reason why T-Mobile would give me a share of stock then turn around and essentially force me to sell it or be nickeled and dimed to death by service fees. How could this possibly be to their benefit? I was forced to either have Loyal3 sell the stock or transfer it to my investment broker where if I eventually sold it, I'd face their fee for the trade. In the end taking the short-term gain and paying the income tax was the lesser of two evils.