3 Companies That Have Bought Back Their Shares This Week

Warren Buffett is a huge advocate of companies buying back their shares. He believes that share buybacks can reveal a thing or two about the company’s management.

He once said, “What you’d like to do as an investor is hook them up to a machine and run a polygraph to see whether it’s true. Short of a polygraph the best sign of a shareholder-oriented management — assuming its stock is undervalued — is repurchases. A polygraph proxy, that’s what it is.”

On that note, let’s check out three businesses 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. The firm is our country’s only postal service provider. Started over 150 years ago, it has since expanded to 19 markets worldwide.

On 21 August 2017, the company bought back a total of 300,000 shares at a price range of between S$1.24 and S$1.245 per share. The total cost came up to approximately S$373,200.

Singapore Post’s shares closed at S$1.25 on Friday. This translates to a price-to-earnings (PE) ratio of around 200 and a dividend yield of close to 2%.

2. IPS Securex Holdings Ltd (SGX: 42N)

Established in 1991, IPS Securex is one of Singapore’s leading providers of security products and integrated security solutions to commercial entities and government bodies.

On 21 and 23 August, the firm bought back 439,900 shares at a price range of S$0.079 to S$0.081. The total cost came up to around S$35,700.

Shares of the firm ended Friday at S$0.083. They are currently trading at a price-to-sales ratio of around 3.5.

3. Bumitama Agri Ltd (SGX: P8Z)

Bumitama Agri, as the name might suggest, is a producer of palm oil and palm kernel in Indonesia.

On every trading day of the week, the company bought back its shares. It repurchased a total of 1,500,000 shares at a price range of between S$0.6994 and S$0.7334, spending around S$1,077,400.

Shares of the commodity firm closed at S$0.735 on Friday. The company is trading at a PE ratio of 12 and has a dividend yield of around 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.