In my opinion share buyback is method used by company under two...

In my opinion share buyback is method used by company under two circumstances:-

1. company has significant outstanding shares like 700m or 1b plus and they want to reduce it to take out excess liquidity of stocks in the market preventing day trader from playing with stock.

2. company had excess cash after paying dividends and debt so they use that remaining additional cash to reduce outstanding shares which will help increase dividend per share next year... and create value...and this is only good if you have excess shares outstanding not for something like 39m.

now, CD1 only has 39m shares outstanding before they declared 40c divided and still price of share didn't go up as not many owners want to sell it unless they get ridiculous price of $1.8.

manager should know that if 40c is not lifting price then buyback would not make any difference... instead they should have invested that fund to another business buying opportunity or kept as next dividend.

CD1 is private equity fund and hence they carry extra risk then normal business.

another error by management was to declare buy back with dividend which means smart invester will take dividend instead selling as they know company is going to buy back after dividend which will prevent price going down after ex-divi date.

also 40c was special divi included from one off sell revenue so there is no guarantee they will give same moving forward.

based on combination of above reasons, just in my opinion it wasn't wise decision for company to buy back when they only had 39m outstanding shares