I think you can look at both as two sides oof a coin. The...

I think you can look at both as two sides oof a coin. The buyback expends cash, but reduces the equity issued so in the future we're all sharing in the same pot, albeit with a larger distribution per share essentially.

The DRP however, lets us reinvest our dividends to increase our equity holding "provided" there are others who dont' take up the DRP, otherwise technically our proportion of shares would go up equally all things alike. Therefore, the main purpose for the company as I see it would be to conserve cash, since obviously they don't have to pay it out via dividends, just issue more equity. Take it like raising equity essentially.

I can see where you're coming from that they contra each other out.... i guess i look at it as some are going to take dividends and run, others like me would reinvest them. Combine that with buying back equity, it's a two pronged approach for me to a) increase my proportionate share of the profit honey pot, and b) for the company to also improve my share of the profit honey pot by helping to buy back and cancel shares.

In this current environment I'm happy to support whichever method leaves suitable cash to not only operate, but pursue future projects that we need to keep the development pipeline going - "at a profit" I might add. From memory finbar is running suitable debt to equity on projects given the land component is 'provided' by the land owners, and they are just paying for construction costs. Provided the current slowdown doesn't cripple them, they are doing ok with their cash position. But in uncertain times like this, I am happy for them to conserve cash via keeping the DRP open, and (provided there areno better opportunities to employ the cash currently) continue th ebuy back.

just my two cents. be good to get another project update soon to see the % of each project, presales, settled sales etc. I don't think it would look too pretty for many projects .... butt he real testing grounds of what we don't know already will be to see how much south perth continues to perform (or not).