Ann: CSR Limited Announcement of buy-back - Appendix 3C, page-11

Well said Pear - i previously gave a half dozen list of companies where the buy back resulted in share price going south, not north.....

having less shares on issue still doesnt drive share price growth, as things that influence profit (to pay divis) is quite complex and ever changing.

sly, u mentioned the buyback is the reason for the uptick in price - I will put my house on the fact that it didnt even move the dial by 1c! As stated before, it MUTED our share price rise!!! the reason we are at $3.30 is simple - viridian turnaround, improved aluminium (which every1 was doubting 65% ROE) and prospect of HIGHER DIVIS (future earnings!!). We simply had an earnings UPGRADE that lifted our price!!
Our interim divi rose to 11.5c (which is what we normally pay at year end) and THESE factors alone pushed us higher as all models were rebalanced to the upside.

I would assign a ZERO factor for probable shares on issue rebalance AS NO FUNDIE CURRENTLY WOULD CARE (FOR NOW - UNTIL IT HAPPENS - IF IT ALL HAPPENS, 3 YEARS WHERE ANYTHING FROM A PROFITABILITY POINT OF VIEW CAN CHANGE)

GIVE ME MY DIVIS ANYDAY!!

HAPPY TO HEAR YOUR COUNTER ARGUEMENT, but nothing can convince me a share buy back does anything but MUTE share price growth, and DOES NOTHING to lure the REAL mkt makers to invest.

Only divis and strong ones (through good earnings) drive growth.

BHP wanted a progressive divi, just cant afford it anymore - they wanted it, because they KNOW IT OBVIOUSLY DRIVES SHARE PERF which is how they are incentivised!...if they could, theyd be $100 right now if it happened. POINT is, our mngt blew this chance!!! like i trust them to play fair with my money for another 3 years - theyll milk our excess with pay increases and director splashes - not interested! WE pay them to make us MONEY!! not squander it.

Simple, chart macquarie bank (used to work there), core principal of profitability at all cost (part of their corporate motto) we used to leverage on everything to extract $$$$$ to pay progressive divis on everything from tolls, airports, u name it. Was there when stock was at $12...look @ it now....and look at their EFFORTS to perpetually RAISE THEIR DIVIS!!!

find me a top 200 asx divi paying stock under $3.50 stock returning 20c a year (5.7% UNFRANKED) - dime a dozen!

Now find in the same pool a stock under $3.50 that pays 50c or more per year.....hmmmm NONE!! exactly. If the market even smelled the possibility of 50c++ a year, we would be holidaying in bora bora now...
my opinion only-DYOR