Talk to some employees in Eldo who said they have been told that they will no longer be allowed to buy company stock in their 401Ks. Something about it being a poor investment strategy to own company stock. Doesn't say much for confidence in the stock when you don't want your employees to invest a portion of their 401K in it.
If you look at the 11-K The amount of stock owned is always less than 10 % of total funds invested. It would help the stock price if the employee bought up 20 million dollars of stock.
Here is the breakdown of company stock owned to total dollars
2010 stock 2.2 million, total 313.9 million 2009 stock 8.7 million, total 307.9 million 2008 stock 5.5 million, total 283.4 million 2007 stock 22.7 million, total 440.9 million 2006 stock 34.9 million, total 462.8 million
chachas_mom, it actually makes sense from a fiduciary point of view. It is likely that one or more company officers are trustees of the 401k plan. 401k plans buying company stock is a poor investment strategy as it goes against diversification. This does not constitute a recommendation, as you suggest, but more likely is someone covering their own butt from a legal perspective. Employees, of course, are free to buy all the CHMT stock they want in other retirement accounts or personal investment accounts. Company sponsored 401k plans, however, are a different animal for legal and regulatory purposes.
Do any employees in Eldo have anything to say about the business?