Ann: CSR Limited Announcement of buy-back - Appendix 3C, page-7

couldnt agree more pear, I thought thats exactly what i had been saying.....

if its still not clear, IM IN HERE BIG (>100K) because i believe there is significant value in CSR (ie undervalued for you sly..), only to have mngt squander the opportunity presented.

share buy back is capped at a price over $3.45, so this may have the inadvertent effect of capping our upside! stupid, stupid decision! hate buy backs - do absolutely NOTHING to the share price!!!

my argument, and ill state it once again for the masses, is that
1. share buy backs do NOTHING to increase the share price - happy for anyone to prove otherwise through empirical evidence (other than in pure finance theory - never works in practice)
2. divis drive capital growth and ALSO LINE INVESTOR POCKETS WITH HARD CASH (rather $$$ to the above MUTE BUTTON BUY BACK)
3. Cap growth will be achieved better through a progressive divi policy which CSR could have provided us!

we will get a rise in divis under both scenarios, mngt already stated so, I expect a 15-18c final divi based on the 35% increase in the mid-year divi (next divi due in three months, so 35% increase to 11.5c = 15.5c expected as a minimum).
But this final divi could easily have been (16c+14c special) = 30c++ had they not squandered OUR money on this useless buy back!

imagine our share price IF A 30c DIVI WAS ANNOUNCED? and ongoing for 2 years? thats ~60c a year (almost 20% return)......share price would be north of $5?

instead, this ULTRA dumb decision has in fact CAPPED us and made us range bound b/w $3.30 - $3.45.

seriously, how is this a positive? we get less $$$$ in our pockets and our share appreciation is muted?

I AM VERY HAPPY WITH CSR'S PERFORMANCE, JUST NOT HAPPY WITH THE CONSEQUENCES TO MY BANK BALANCE THROUGH LESS DIVIS THAN EXPECTED, AND CAPPED SHARE PRICE INCREASE DUE TO THIS DUMB DECISION.

DYOR - my opinion only.