I agree. There is not any way diluting current shareholders can be construed as a positive. If they are so confident that the shares are worth more than the current market price they should be paying employees a cash match. They are in effect giving away the company to the employees (including themselves) at the expense of shareholders.
I think if they were concerned about the stock price they would not be giving away shares through the 401k plan. I am sure many of those shares hit the market quickly as it would be unwise for any employee to have half their retirement invested in one company. Lots of ideas have been suggested on CC's over the past couple years so far they have not done any of them....I think it is safe to assume they are not concerned about the stock price.
what about all the shares just issued with the 401k plan? Despite the settlement money and the additional working capital from the financing they continue to dilute shareholders. This has been brought up on so many calls and they do nothing.