P87, good questions. Here are few reasons, I think: 1. DNA sees...

P87, good questions. Here are few reasons, I think:

1. DNA sees its own shares as cheaper value than any short-term acquisition, and no acquisition is in sight (for a few months). DNA alluded to this (i.e. some acquisitions have been discussed, but they are waiting until better priced). This explanation has been used for other buybacks (e.g. TIX in April 2014). Remember, too, that DNA doesn't need to spend all the buyback money and it can stop the buyback at any time when a good acquisition comes along. So remaining buyback funds can be quickly channeled into an acquisition.

2. DNA has solidly positive cash flow (quite clearly stated in its announcements/reports), so it has "extra" cash for a buyback. Better use of capital than letting it sit in aback account. Also, too early in DNA's development to start doing dividends, so a buyback is an effective alternative form of shareholder-friendly capital management. Even if DNA contemplated dividends (which it shouldn't for a while), with no franking (overseas business), a share buyback is apparently a better strategy.

3. It's a credibility thing. DNA's sp dropped far below the recent cap raise price. Even though instos are supposedly rational future-focused calculators, they may be reluctant to participate in future DNA cap raises if the sp doesn't recover quickly from the previous cap raising.

4. The MD and others have a major stake in DNA. Even though they have a long term view, they likely feel better if DNA's sp reflects its value and potential.