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3 Companies That Have Bought Back Their Own Shares This Week

Warren Buffett is someone who strongly encourages companies to buy back their shares if the conditions are right. In his 1984 Letter to Shareholders, he opined, “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.”

On that note, let’s take a look at three companies picked at random that have repurchased their shares during the week.

1. Duty Free International Ltd  (SGX: 5SO)

According to its website, Duty Free International is the “largest local duty-free retailing group in Malaysia, with strategic presence at all leading entry and exit points in Peninsular Malaysia”.

On 31 July, 1 August, 2 August and 3 August 2017, the company bought back 2.5 million shares at a price ranging from S$0.305 to S$0.31717. The total cost came up to around S$775,000.

Shares of the firm are going at S$0.295 currently. They are currently trading at a price-to-earnings (PE) ratio of around 17 and have a dividend yield of close to 8%.

2. SIA Engineering Company Ltd (SGX: S59)

Part of the Straits Times Index (SGX: ^STI), SIA Engineering provides base and line maintenance of aircraft, among others. It is largely owned by our flag carrier, Singapore Airlines Ltd. (SGX: C6L).

On 2 August, SIA Engineering repurchased 27,500 shares ranging from S$3.56 to S$3.58 per share, translating to a total cost of approximately S$98,000.

SIA Engineering’s shares are going at S$3.59 apiece. The company is currently trading at a PE ratio of 24 and sports a dividend yield of 3.6%.

3. Oversea-Chinese Banking Corporation Limited (SGX: O39)

OCBC needs no introduction. The bank is the longest established local bank and is the second largest financial services group in Southeast Asia by assets.

On 3 August, OCBC repurchased 160,000 shares at $11.27 per share. The total cost was S$1.81 million.

Shares of OCBC are going at $11.27 now. The company is trading at a price-to-book ratio of 1.29 and has a dividend yield of 3.2%.

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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.