re: Ann: Appendix 3E - Daily Share Buy-back N... I don't agree...

re: Ann: Appendix 3E - Daily Share Buy-back N... I don't agree with a special dividend. And I don't think it will happen.

First thing is that JC and the management want the share price over $1 end of 2011 so that they can cash their bonus options. The fewer shares on issue, the higher the share price ought to be, all things being equal.

Secondly, once you give cash away to holders it is gone out the door. Using the cash to reduce the shares on issue means the value is stored in the share existing share structure as each share becomes more valuable.

Thirdly, plain maths, management are today generating buying back 20% below cash value. Cash dividend will give you 100% of the cash value. Buying back the shares 20% or so below cash backing delivers holders 120%. This of course assumes the shares return to cash backing or above in future, which if you are a holder, you most likely support the view.

Anyway you can see there should be a number of advantages to the buy-back for long term holders.

---DYOR----