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 clawed back their shares from the market during the week.
1. Bonvests Holdings Ltd (SGX: B28)
Bonvests owns and manages various prime commercial and hotel properties. Some of the properties here include Liat Towers and Sheraton Towers Singapore Hotel. It also has a 78.9% stake in Colex Holdings Limited (SGX: 567), a waste management and contract cleaning company.
On 14, 15 and 17 August 2017, the company bought back a total of 141,000 shares at a price of S$1.30 per share. The total cost came up to approximately S$184,900.
Bonvests’ shares closed at S$1.30 on Friday. This translates to a price-to-book ratio of 0.59 and a dividend yield of 1.2%.
2. Spackman Entertainment Group Ltd (SGX: 40E)
The firm is one of Korea’s leading theatrical film production groups which produces theatrical films. Having gone public in July 2014, it was the first Korean entertainment company to be listed in Singapore.
On 14, 15 and 17 August, Spackman repurchased 1,099,000 shares at a price range of between S$0.102 and S$0.105 apiece. The total cost was S$114,300.
Shares of the company closed at S$0.103 on Friday, giving a price-to-sales ratio of around 2.
3. Best World International Limited (SGX: CGN)
According to its website, Best World “specialises in the development, manufacture and distribution of premium skincare, personal care, nutritional and wellness products, to customers through its direct selling network in 12 markets”.
On 15, 16 and 17 August, the firm repurchased 141,000 shares ranging from S$1.175 to S$1.37 per share, translating to a total cost of around S$188,000.
Shares of Best World International ended the week at S$1.195 apiece. This gives a trailing price-to-earnings ratio of around 15 and a dividend yield of 2.5%.
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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.