ASA Delta Stock Purchase Suspended!

[Freebrd]

JPMorgan suspends investment in Delta stock through ASA 401(k) Plan

In a letter to ASA Investment Savings Plan participants to be mailed this week, JPMorgan announced that, at the direction of the Atlantic Southeast Airlines, Inc. Investment Committee, it would no longer allow Plan participants to invest in Delta stock through the ASA Investment Savings Plan as of Sept. 11, 2004. This means that Plan participants may not allocate any future 401(k) contributions to the Delta Stock Fund.

If you have designated future investment contributions to go into the Delta Stock Fund, they will instead be invested in the American Century Stable Asset Fund until you log on to www.retireonline.com or call 800-345-2345 to make a new designation about how new contributions should be invested. Also, assets already invested in the Delta Stock Fund will remain in that fund until reallocated by the team member. At this time, all other components of ASA's Investment Savings Plan continue in effect and unchanged.

This period, during which you will be unable to make new investments in Delta Stock, is called a "blackout period." Customarily, we would provide you with thirty (30) days notice prior to a blackout period. However, in light of various public disclosures regarding Delta's financial security, we find it more prudent from a fiduciary standpoint to take immediate action and suspend new contributions into the Delta Stock Fund effective September 11, 2004.

During the blackout period, your Delta Stock Fund account will continue to accrue investment gains and/or losses. Whether or not you are planning retirement in the near future, we encourage you to carefully consider how this blackout period may affect your retirement planning, as well as your overall financial plan. Remember, you are free to make a new designation about how new contributions should be invested and you also are free to transfer funds from your Delta Stock account to any other investments in the Savings Plan.

We currently do not know when it will be appropriate to end the blackout period due to the volatility of Delta's financial situation. We will continue to monitor Delta's financial situation and the appropriateness of making new contributions in the Delta Stock Fund. When we determine that investment in Delta Stock is appropriate, we will advise you as soon as possible as to the date the blackout period will be discontinued.

 

[sweptback]

You'd have to be stupid to put your retirement in Delta stock anyway. Nothing against the company or the people, but any airline is a terrible long-term investment.

This almost sounds like they're expecting DL to go into Ch. 11...

 

[letthebigdogeat]

Agreed! However, for them to have done so without our consultation somewhat irritates me. It is our decision if, when, with whom and how much we want to invest with the current options that have been placed upon us. On the other hand as stated in the previous post, for them to have done that, they most definitely must have known some insider info; or maybe not? Is it the obvious, for our protection, just simply speculation or insider info? Things that make you go hmmmmm!

 

[Propsync]

Yeah, no suprise there. Really, why would you want it in the first place? And that's no slam to Delta at all, they've done well until late. Midwest did the same thing when they came close to chp. 11. It was the same deal- little notice.

IMHO, if you gave me the choice of airline stock or putting it all on black, I would almost think black is the better bet. Although I must warn you, I'm not the best financial planner.

 

[Vortilon]

This has happened already to Delta employees. Part of our company match is in a Delta stock fund (like it or not). The managers of that stock fund have an obligation to protect your investment. This is true of the managers of any mutual fund and if it were in jeopardy they are authorized to freeze transfers on your behalf.