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 mentioned:
“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 so far this week.
1. Yanlord Land Group Limited (SGX: Z25)
Yanlord Land is a real estate developer based in China that focuses on developing high-end residential, commercial and integrated properties in the country.
On 16 and 19 October 2017, the firm repurchased a total of 678,600 shares at a price range of between S$1.82 and S$1.88 apiece. The total cost was around S$1.26 million.
Shares of the property developer are going at $1.85 currently, giving a price-to-book ratio of 0.85 and a dividend yield of 2.4%.
2. Singapore Post Limited (SGX: S08)
Postal and logistics services provider, Singapore Post, is no stranger to Singaporeans. With a history stretching back 150 years, it currently operates three business segments – Postal, Logistics and eCommerce.
On 17 October, the firm repurchased 150,000 shares at a price of S$1.30 per share. It spent S$195,250 for the share buyback.
At the time of writing, the shares are selling at S$1.29 and are yielding around 2%.
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 17 and 19 October, the company repurchased 149,200 shares ranging from S$0.935 to S$0.945 per share, translating to a total cost of around S$141,000.
Shares of Sarine Technologies Ltd are selling at S$0.93 now. This translates a trailing price-to-earnings ratio of 16 and a dividend yield of around 6%.
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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