Do you have any comments or advice here.
With strong recent earnings, DCBO finds itself with too much cash ($170M) so it is deciding to buyback $100M in shares. Certainly, a month ago would have been better timing for the company, but insiders do not know how investors will react to events. It has had a good run, management must be confident in the future outlook of the company. The buyback represents about 6% of 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.