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>The original poster in this thread quotes a RTN
>employee as saying that RTN management is encouraging
>all employees to invest in RTN as their 401k
>investment. I cannot believe any employer would
>blatantly encourage that action. Did everyone forget
>diversification?

Actually, I believe what happened is that Raytheon announced that the matching funds put in by the company would be initially put into the RTN stock fund. Employees are still free to put their own 401K contributions where they choose plus may transfer the matching funds out of RTN stock once that money is vested (i.e. once that money belongs to the employee rather than the employer).

>In my opinion, only a fool (small f) will over-invest
>in his employer for his 401k.

I agree completely. Even though I no longer work for Raytheon, I am relying on them for pension payments at retirement so I usually have my 401K at around 5% RTN stock. I did bump it to around 10% when the price went under $20 and I freely admit that's a bit risky for me.

>I am aware of two employees who retired from RTN in
>very recent past. Only minimal amounts were invested
>in RTN, solely in an effort to diversify. And in the
>case of both, their RTN holdings were moved to other
>investments ON THE FIRST DAY of their retirement.

This makes no sense to me. I regularly distributed my money between various Fidelity funds as an employee and so did everyone I knew. Waiting until after you retire to balance your portfolio seems foolish, I agree.

>Over thirty years ago, I was personally advised by a
>RTN recruiter to never accept employment with RTN.

I question how much you should trust the opinion of an individual with such an obvious disconnect between his own beliefs and what he chooses to do for a living.

>I have known many, many employees of RTN over the last
>30 to 35 years, and have never had one tell me that
>RTN was an especially benevolent employer.

Can't argue with that. I worked at four different Massachusetts plants for a total of 15 years over a 20 year span and the take I got from people was that Raytheon was a decent place to work but, certainly, not especially benevolent. Digital Equipment Corporation up the street was unbelievably benevolent. That is, of course, until they lost their business.

>Just my own opinions, based on observation and
>experience. It may not be worth what a share of RTN is
>worth today.

I appreciate everyone that takes the time to explain how they feel and why. That, plus the occasional news snippet I may have missed is why I bother to read these boards. Lord knows, I have no use for the cheerleaders (pro or con) and the psychic price predictors.

>Others should make their own informed decisions as to
>the timeliness of RTN as an investment.

Even though Raytheon is a reasonably diversified company, I believe that military spending is critical to their operation. I am not just talking about the obvious increased revenue. The whole company just seems to run smoother and more efficiently when they have a good amount of military work in the pipeline.

The cynic in me says that this is because, when times are good, the big boys are off doing what they do best...smoozing with the folks in Washington to keep the gravy train rolling. When goverment spending goes down, upper management turns it's attention back to day-to-day issues that are better attended by the line managers in place. Upper management feels pressured to start making changes ('got to do something') and almost any change is for the worse since things had been running fairly well the way they were.

Anyways, military spending is a cyclical thing and we have been on the downside for quite a while so I'm pretty optimistic that things will be improving for RTN. I can't speak to the timeliness of this - depends an awful lot on the world situation and who gets elected next.
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