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Company Share Buybacks for the 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 thus far this week.

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 11 and 12 September 2017, OCBC repurchased 400,000 shares at a price range of between S$10.92 and S$10.99 apiece. The total cost was around S$4.5 million.

Shares of OCBC is going at S$10.90 now, giving a price-to-book ratio of 1.25 and a dividend yield of 3.3%.

Global Testing Corp Ltd (SGX: AYN)

Global Testing Corp is involved in the semiconductor industry, and it provides testing services such as wafer sorting and final testing for mixed-signal and logic integrated circuits.

On 12 September, the company repurchased 10,000 shares at a price of S$1.10 apiece. The total cost was about S$11,000.

Shares of the company are now priced at S$1.10, giving a trailing PE ratio of close to 11 and a dividend yield of 18%.

Tiong Seng Holdings Limited (SGX: BFI)

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

On 12 and 13 September, the company bought back a total of 298,100 shares at a price range of between S$0.315 and S$0.32 per share. It spent around S$96,000.

Tiong Seng Holdings’ shares are trading at S$0.315 now. The firm is going at seven times its trailing earnings and has 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 does not own shares in any companies mentioned.