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. Singapore Post Limited (SGX: S08)

Postal and logistics services provider, Singapore Post, is no stranger to Singaporeans. With a history stretching back 150 years, it currently operates three business segments – Postal, Logistics and eCommerce.

On 7 and 10 August 2017, the company bought back a total of 400,000 shares at a price range of between S$1.26 and S$1.305 per share. The total cost came up to approximately S$517,000.

Singapore Post’s shares closed at S$1.27 on Friday. This translates to a price-to-earnings (PE) ratio of 200 and a dividend yield of 2%.

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

Oversea-Chinese Banking Corporation, or OCBC for short, is the longest established local bank and is the second largest financial services group in Southeast Asia by assets.

On 7, 8, 10 and 11 August, OCBC repurchased 800,000 shares at a price range of between S$11.13 and S$11.31 apiece. The total cost was close to S$9 million.

Shares of OCBC closed at $11.20 on Friday, giving a price-to-book ratio of 1.3 and a dividend yield of 3.2%.

3. Sarine Technologies Ltd (SGX: U77)

Sarine Technologies Ltd is a manufacturer of precision technology products for the processing and trade of diamonds and gemstones.

On 10 August, the company repurchased 50,000 shares ranging from S$1.45 to S$1.46 per share, translating to a total cost of around S$73,000.

Shares of Sarine Technologies Ltd ended the week at S$1.44 apiece. This gives a PE ratio of 23 and a dividend yield of 4.4%.

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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.