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Singapore’s Big Winner This Week: Biosensors International Group Ltd

A firm involved in the medical industry, Biosensors International Group Ltd (SGX: B20), put on 7.1% so far, finishing Thursday at S$0.53. With the Straits Times Index (SGX: ^STI) going in the opposite direction, Biosensors is indeed a big winner in the Singapore market this week.

Monday to Wednesday this week saw the stent maker buying back its shares aggressively. Collectively, it bought back around S$1.1 million worth of its equity. The price the shares were bought back ranges from S$0.4901 to S$0.4998 apiece.

In fact, thus far for 2014, the company had bought back around S$8 million worth of its shares. The market capitalisation of the firm now stands at S$885.1 million.

The wizard of Omaha, 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 said, “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”.

However, Biosensors did not really see an outstanding half-year results (six months ended 30 September 2014) that Buffett would have liked. Total revenue decreased 2% to US$155 million while net profit slumped 37% to US$15 million. On its balance sheet, it had a total borrowing of US$305 million.

The medical outfit is currently going at 21 times its historical earnings.

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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.