3 Companies That Have Bought Back Their 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. 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 4, 5 and 6 September 2017, OCBC repurchased 600,000 shares at a price range of between S$10.97 and S$11.03 apiece. The total cost was close to S$6.6 million.

Shares of OCBC closed at $10.88 on Friday, giving a price-to-book ratio of 1.2 and a dividend yield of 3.3%.

2. SIA Engineering Company Ltd (SGX: S59)

SIA Engineering provides base and line maintenance of aircraft, among others. It is also around 78% owned by our flag carrier, Singapore Airlines Ltd. (SGX: C6L).

On 5, 6 and 7 September, SIA Engineering repurchased 114,000 shares ranging from S$3.40 to S$3.45 per share, translating to a total cost of around S$391,000.

Shares of SIA Engineering ended Friday at S$3.41. The company is trading at a price-to-earnings (PE) ratio of 22 and sports a dividend yield of 3.8%.

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 7 September, the company repurchased 40,000 shares ranging from S$1.295 to S$1.30 per share, translating to a total cost of around S$52,000.

Shares of Sarine Technologies Ltd ended the week at S$1.32 apiece. This gives a PE ratio of 21 and a dividend yield of 4.8%.

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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.