Video: better to buy-back shares than to Pay dividends
Dividends are like getting married. You are locked in for a long time. Shareholders get #$%$ if later on dividends are cut.
Share buy-backs are more like an occasional hook-up. It is enjoyable, but you can control the event schedule.
Nobody much cares if little CRY pays a small dividend or not.
The way I understand it, treasury shares can later be bought and later sold back into the marketplace without any tax consequences. So what should happen is that when management (who should presumably know more about their company than anyone else, let's hope so any) sees that the share price is low, they should direct free cash flow toward treasury stock purchases. Someday even CRY stock may run up for some reason. Also, hopefully we won't have to wait another 16 years for this to happen. Then the shares could be sold back into the marketplace greatly improving the liquidity situation. To me this looks like an example of SA running in several directions (PerClot, Vascular Technologies, HeRO Graft, ValveXchange, new dividend policy, etc) all the time not knowing where the company is starting from or where it is the company is going. At 73, and having been this ineffective for 16 years, it sure seems like this CEO has a serious ego problem that is fundamentally affecting the stock price valuation in a seriously negative fashion.
Google "trimtabs" and watch the current blog video by Charles Biederman. Biederman runs a closed end fund symbol TTFS. He basically invests only in companies buying back their shares. IMO SA should have talked to Biederman before instituting the dividend policy.
The above is strictly my own opinion. You are responsible for making your own due diligence.