These 3 Companies 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 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 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 20, 21 and 22 November 2017, OCBC repurchased 600,000 shares at a price range of between S$11.67 and S$12.04 apiece. The total cost was around S$7.1 million.

Shares of OCBC closed at S$11.97 on Thursday, giving a price-to-book ratio of 1.4 and a dividend yield of 3%.

2. Sembcorp Marine Ltd (SGX: S51)

Established in 1963, Sembcorp Marine is now a global offshore and marine group.

On 20, 21 and 23 November, Sembcorp Marine bought back a total of 220,000 shares at a price range of between S$1.80 and S$1.83 per share. The total cost came up to around S$399,500.

Sembcorp Marine’s shares ended Thursday at S$1.83. This gives a trailing PE ratio of around 47 and a dividend yield of 1%.

3. Starburst Holdings Ltd (SGX: 40D)

Starburst Holdings specialises in the design and engineering of firearms-training facilities, among others, for military and security agencies, and civil authorities.

On 20, 21 and 23 November, the firm bought back a total of 347,000 shares ranging from S$0.40 to S$0.41 per share, amounting to a total cost of about S$141,400.

On Thursday, Starburst’s shares closed at S$0.415, translating to a dividend yield of 0.6%.

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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 does not own shares in any companies mentioned.