Lev20 - would like to believe that they will follow through on the buy-back, but at the moment their actions speak very loudly that they are not really trying.
As you have pointed out numerous times, they no longer have a debt issue, the business is performing solidly and they are generating strong cash, so the notion that you hang back on the buyback to save maybe $500k of additional (tax deductible) interest cost in the half year does not make sense.
I am wondering if this has now just become a strategic plaything for Seven Group (SVW). Potentially the real strategy here is to pay down the debt to almost nothing, keep the share price deliberately low (noting the, yet again, underwhelming market response to this announcement) and then have Seven Group swoop in and buy out the remaining shareholders for cents in the $ so SVW can consolidate and utilise the cashflows to further other corporate ambitions.
SWM Price at posting:
44.3¢ Sentiment: Hold Disclosure: Held
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