Re: [CANSLIM] Arthur Andersen... more OT.

From: "Bill Triffet" <btriffet@earthlink.net>
Subject: Re: [CANSLIM] Arthur Andersen... more OT.
Date: Sun, 20 Jan 2002 15:24:29 -0800

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- ----- Original Message -----
From: "Robert Gammon" <rgammon51@yahoo.com>
To: <canslim@lists.xmission.com>
Sent: Sunday, January 20, 2002 6:05 AM
Subject: Re: [CANSLIM] Arthur Andersen

> I don't expect to see an outright prohibition of stock ownership in
401(k)s.  One
> possible compromise that I envision is a new requirement for 401(k) plan
> administrators.  Under this proposal, the 401(k) plan administrators would
be
> required to send periodic notices to employees whose stock holdings
amounted to more
> than XX% of the employee's 401(k) plan value.  ??Periodic?? == quarterly,
monthly,
> weekly, daily, frequency COULD be made dependent on the percentage that
the company
> stock represented of account value.  A list of employees whose holdings
are above the
> magic percentage number should be given to CEO/CFO.

One point many folks miss is stock ownership is a requirement in many
companys where there is a  company paid matching amount.

For instance, I worked for a privately held medical company a few years back
that matched up to 4% of your salary to the 401(k) plan. It was a plan with
many investment options. They were then bought out by St Jude Medical.
Starting that year, they only contributed to the plan in the form of St Jude
stock. You also were required to buy St Jude stock with as least 50% of your
personal contribution in order to get the match!

I then went to a Textron company. Same deal. I had to assign a minimum 50%
of my personal contribution in order to receive a matching amount - that was
only offered as Textron stock. ( this was at a time that TXT was headed down
fast).

In both cases. one could not transfer any funds out of the company stock
into say money markets or mutual funds while an employee. This is the REAL
problem with company stock ownership.

- -Bill Triffet

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