I think you'll find you are broadly incorrect. I'll write my bit...

I think you'll find you are broadly incorrect. I'll write my bit and leave it at that. Won't be getting into weirdness on this issue.

If you spend $1.22 on buying back a share. Yes, you "lose" the $1.22 from cash BUT you decrease the shares on issue by 1. The current market value being $1.22 means its a zero sum gain. Not counting transaction charges.

The value comes from the view that KCN shares are actually worth more than $1.22 and thus whoever holds a share at $1.22 after a share has been bought back is ultimately winning.

The argument that 1 share worth $1.23 traded at the end of the day to move a share price from $1.22 to $1.23 changes the market cap by $2.57m dollars is a strictly correct but a little bit "stupid" because if you want to exit with say 1 million shares at $1.23 you can not. Also we are after a multi year buy back and do not care if the share price is $1.22 or $1.23 - we are looking at $4 or $5 and this is done by years of good management and buying back all the shares we can.