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3 Companies That Have Bought Back Their Own Shares

Warren Buffett is one man who advocates companies buying 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.

Capitaland Limited (SGX: C31)

As one of Asia’s largest real estate companies, Capitaland’s assets are ubiquitous in our sunny island. The company has interests in shopping centres that include Junction 8, Plaza Singapura, and Bugis Junction.

On 6th, 9th and 11th of December, Capitaland repurchased 5,554,000 shares ranging from $2.96 to $3.02 a share. It spent a total of approximately $16.6 million. The company is currently trading at a PB ratio of 0.79 and sports a dividend yield of 2.4%. Shares of Capitaland last traded at $2.96 on Friday.

Ho Bee Land Limited (SGX: H13)

Ho Bee is a real estate development and investment company with a portfolio covering 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.

Every day last week, Ho Bee had been buying back its own shares. It bought back a total of 1,334,000 shares ranging from $2.03 to $2.04 per share, spending a total amount of around $2.7 million. Ho Bee is currently trading at a price-to-book (PB) ratio of 0.75 and is yielding 2.54%. It closed at $2.03 on Friday.

Singapore Press Holdings (SGX: T39) or SPH

SPH is Southeast Asia’s leading media organization and is the publisher of the widely read local newspaper – The Straits Times. On an average day, 76% of people more than 15 years old or 3.05 million individuals, peruse one of SPH’s news publications.

On the 9th and 11th of December, the company bought back a total of one million shares at a range of $3.98 to $4.02 apiece. It spent a total of $4.0 million in the repurchasing exercise. The company is currently trading at a price-to-earnings ratio of 14.8 and its dividend yield is at 3.8%. The media organisation’s shares last changed hands at $4.00 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.