The board favours buybacks for one simple reason. The performance rights they receive are not eligible to receive dividends. Their conversion to ordinary shares is based on a few factors. They include increased margin, revenue, cost cutting and share price appreciation. From this we can see that the buyback benefits them more than it does us. It is still difficult to make a case against them! There is little we can do if this bothers us other than put forward a change of the constitution to require shareholder voting in favour of BB or dividend. I will note that voting already took place and was approved by shareholders. I suppose we bear equal responsibility by voting this thing into being.
If you do not like buybacks, do not vote for them or do not buy into a company that recently had a large buyback approved. Simple fix!
WHC Price at posting:
$7.31 Sentiment: Buy Disclosure: Held
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