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3 Companies That Have Bought Back Their Shares This Week

Warren Buffett is a huge advocate of businesses 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 companies picked at random that have repurchased their shares during the week.

1. BBR Holdings (S) Ltd (SGX: KJ5)

According to its website, BBR Holdings is “one of Singapore’s leading construction and specialised engineering groups with more than 20 years of industry experience. It currently comprises four core business segments spanning across General Construction, Specialised Engineering, Property Development and Green Technology”

On 28, 29 and 30 August 2017, the company bought back a total of 140,000 shares at a price range of between S$0.225 and S$0.235 per share. The total cost came up to approximately S$32,300.

BBR’s shares closed at S$0.235 on Thursday. This translates to a trailing price-to-earnings (PE) ratio of around 8 and a dividend yield of 1.7%.

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 29 August, Spackman repurchased 200,000 shares at a price of S$0.12 apiece. The total cost was around S$24,000.

Shares of the company ended Thursday at S$0.121, giving a trailing PE ratio of close to 6.

3. Tiong Seng Holdings Limited (SGX: BFI)

Tiong Seng, with a history going back to 1959, is a construction and civil engineering company based in Singapore. Its past construction projects include Parkroyal @ Upper Pickering Street, NTUC Fairprice Warehouse & Office and Mediacorp at Mediapolis @ One North.

On 29, 30 and 31 August 2017, the company bought back a total of 232,000 shares at a price range of between S$0.29 and S$0.30 per share. It spent around S$69,100.

Tiong Seng Holdings’ shares closed at S$0.295 on Thursday. The firm is going at six times its trailing earnings and has a dividend yield of 2.7%.

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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 does not own shares in any companies mentioned.