I started accumulating SWK at about 36 cents approximately four...

I started accumulating SWK at about 36 cents approximately four months ago. The price has been slowly drifting southward ever since. I attended their AGM in Perth last month. They appear to be a well-run business with a focus on the next three to four years. I will keep buying at this price an average my overall buy price down.

I have read with interest some of the comments posted of late in regards to the buyback. While I am also a bit miffed as to the slowdown in the buyback, experience tells me another game plan is at play.

Let me tell you a true story. Approximately three and a half years ago I bought into FSA Group Limited (FSA) at approximately 31 cents. The company was making profits but no dividends were being paid. Within weeks the price had dropped down to 25 cents. I didn’t buy anymore at that time. Why throw good money after bad.

A few months after my initial FSA purchase, a one cent dividend was announced followed by a buyback announcement. The company then aggressively purchased back its shares on market for approximately 12 months and then fazed their buyback out.

Then FSA started to lift its dividend payout. It went from 1 cent to 2.2 cents to 5 cents last financial year and is likely to pay out 6 cents fully franked this financial year. As a consequence, the shareprice is over $1.20 as I write.

While I would love to see SWK continue aggressively with their buyback, I am more than comfortable if the strategy has changed to increasing their dividend payout. In a low interest rate environment, investors will always chase a return. All the records are available online so DYOR. In the long run, your patience will be rewarded.