3 Companies That Have Bought Back Their Own Shares

3Warren Buffett advocates that companies should buy back of their own shares if the conditions are right.

In his 1984 Letter to Shareholders, he opined that, “When companies with outstanding businesses and comfortable financial positions find their shares selling far below intrinsic value in the marketplace, no alternative action can benefit shareholders as surely as repurchases.”

Warren Buffett’s partner, Charlie Munger, likens companies which buy back huge amounts of their own shares as “cannibals”.

Let’s take a look at three companies that have repurchased their own shares in the past week.

Ho Bee Investment Limited (SGX: H13)

Ho Bee is a real estate development and investment company with a portfolio covering high quality residential, commercial and high-tech industrial projects. Its projects include Turquoise at Sentosa Cove, The Metropolis at North Buona Vista Drive and Parliament View at the coveted Westminster area in London, offering magnificent views of the Big Ben and Houses of Parliament.

On 10 and 11 of October, Ho Bee bought back a total of 1.7m shares ranging from $1.985 to $2 per share. Ho Bee is currently trading at a price-to-book (PB) ratio of 0.74 and it shares yield 2.6%. It closed at $1.995 on Friday.

Oversea-Chinese Banking Corporation Limited (SGX: O39)

OCBC needs no introduction. The stalwart of the Straits Times Index (SGX: ^STI) is the longest established Singapore bank and is the second-largest banking group in Singapore by total assets.

Between 7 and 10 October, OCBC repurchased 170,000 shares ranging $10.19 to $10.24 per share. The company is currently trading at a PB ratio of 1.52 and sports a dividend yield of 3.2%. Shares of OCBC closed at $10.22 on Friday.

Soup Restaurant Group Limited (SGX: 5KI)

Soup Restaurant operates a chain of restaurant outlets under the eponymous name of “Soup Restaurant” in Singapore. According to the company’s website, most of their dishes originated from family recipes and are distinctive and traditional. They have outlets in various shopping malls such as Nex, Vivocity and Paragon.

On 9 and 10 October, the company bought back a total of 295,000 shares at between $0.20 and $0.215 per share. The company is currently trading at around 15 times historic earnings and its dividend yield is 3.2%. Soup Restaurant’s closed at $0.22 on Friday.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.