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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. Sembcorp Marine Ltd (SGX: S51)

Sembcorp Marine is one of the largest oil rig builders in the world. The firm also has capabilities in performing repairs and upgrades of vessels, marine and offshore structures, among others.

On 6 and 8 November 2017, Sembcorp Marine bought back a total of 300,000 shares at a price range of between S$1.9614 and S$1.9696 per share. The total cost came up to slightly below S$590,500.

The firm’s shares ended Friday at S$1.97. This translates to a trailing price-to-earnings (PE) ratio of around 50 and a dividend yield of 1%.

2. HC Surgical Specialists Ltd (SGX: 1B1)

HC Surgical is a medical services group mainly engaged in the provision of endoscopic procedures and general surgery services in Singapore.

On 7 and 8 November, the firm bought back a total of 259,900 shares at S$0.695 apiece. It amounted to around $181,100.

Shares of HC Surgical closed at S$0.705 on Friday. This gives PE ratio of around 80 and a dividend yield of 3.5%.

3. Japan Foods Holding Ltd (SGX: 5OI)

The firm is a Japanese restaurant chain owner which operates brands such as Ajisen Ramen, Menya Musashi and Kazokoutei.

On 9 November 2017, Japan Foods bought back 29,300 shares at S$0.42 per share, costing some S$12,400.

The firm closed at S$0.42 on Thursday, with no shares traded on Friday. It had a PE ratio of 17 and a dividend yield of 4.9%.

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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.