Buybacks are popular for companies who are coignsant of shareprice and intend to grow exponentially with more bolt on acqusitions as they may intend to raise multiple times in future.
Icandy (ICI) under animoca brands tutelage is a prime example of a growth company that fills in liquidity gaps with buybacks if the price becomes ridiculously low vs a raise. A buyback program would mean Dropsuite makes an instant profit. Buying shares at 18c from a 21c raise is an instant 20% return on equity injection on our balance sheet. I've never suggested Dropsuite should operate a $20m buyback program, I'd agree that's ludicrous.
But a $1m buyback program at 18c would give investors more comfort it won't go lower and it would likely hover higher than the price floor and provide liquidity on days where an investor needs an exit for personal reasons and decides to wipe out two lines. A pricefloor is a huge sentiment indicator.
This serves Dropsuite long term (beyond the short term equity value) as a future acqusition could include script at a higher price whilst keeping all investors confident that management are managing all stakeholders to their fullest rather than just raising 20% whenever they feel like it for a 'possible' acqusition. To date that cash has underperformed inflation.
So, I disagree that a buyback has no benefits to Dropsuite.
In any case, I doubt management will do one anyway!
Dse is a outstanding conservative asx tech company that continues to grow at a steady rate with a high margin. I'd like to see them take more risks now that they are cashflow positive to become a behemoth otherwise we will be sitting here a few years before this hits 50c+ (ex -acqusition) If they can just simply maintain their rate of growth for a few years I have no doubt it'll be a dividend paying company if management never takes any risks and it'll be worth many multiples more from investors that are seeking a periodic income (mainly super vehicles).
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