With strong recent earnings, DCBO finds itself with too much cash ($170M) so is deciding to buyback $100M in shares. Certainly a month ago would have been better for the company, but insiders do not know how investors will react to events. The stock has had a good run, Management must certainly be confident on the future outlook. The buyback is for about 6% of the shares outstanding, so any shares tendered will be bought at a pro rata allocation. We would consider it a good move by the company, and will enhance per-share earnings leverage if things go well at the company. DCBO also announced a CEO transition. The new CEO has 10 years of experience at the company and we are comfortable with the plan. The former CEO will still be at the company.
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