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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 so far 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 13 and 14 November 2017, OCBC repurchased 400,000 shares at a price range of between S$11.70 and S$11.74 apiece. The total cost was around S$4.7 million.

Shares of OCBC closed at S$11.55 yesterday, giving a price-to-book ratio of 1.3 and a dividend yield of 3.1%.

2. Silverlake Axis Ltd (SGX: 5CP)

Silverlake Axis is a software solutions provider servicing mainly the financial services sector.

On 13, 14 and 15 November, the firm repurchased 11,000,000 shares at a price of between S$0.5843 and S$0.599 apiece. The total cost came to around S$6.6 million.

Shares of the company ended Wednesday at S$0.60, translating to a trailing price-to-earnings (PE) ratio of close to 7 and a dividend yield of 3%.

3. Sembcorp Marine Ltd (SGX: S51)

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

On 14 and 15 November 2017, Sembcorp Marine bought back a total of 200,000 shares at a price range of between S$1.8578 and S$1.91 per share. The total cost came up to slightly higher than S$370,000.

Sembcorp Marine’s shares ended Wednesday at S$1.82. This gives a trailing PE ratio of around 46 and a dividend yield of 1%.

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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.