Tuesday, 21 June 2011

CSC share Buy Back Program: A waste of money?

CSC share buyback program - value for money??

CSC's 10K report disclosed that under its buyback program CSC bought 1,353,000 shares for a total cost of $65million in Q4 FY11. The average price was $48.01 per share

At today's price of around $38.50, all those shares could have been bought for $52million. So CSC has wasted so far about $13million of its shareholders' money.

As a CSC shareholder, I would have preferred to see these $13million invested in ensuring the company had a Finance organization which was fit for purpose. There could have been an excellent return on investment already by having avoided $91million of accounting irregularities in Nordic.

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