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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 so far during the week.

1. Singapore Post Limited (SGX: S08)

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 18 December 2017, the company clawed back from the market 300,000 shares at a price of S$1.23 per share. It spent around S$369,000 for the share buyback.

At the time of writing, Singpost’s shares are trading at S$1.23. This gives a price-to-earnings (P/E) ratio of 264 and a dividend yield of 1.6%.

2. Oversea-Chinese Banking Corp 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 18, 19, 20 and 21 December, OCBC repurchased 800,000 shares at a price range of between S$12.26 and S$12.34 apiece. The total cost was around S$9.9 million.

OCBC’s shares are going at S$12.37 now, giving a price-to-book ratio of 1.4 and a dividend yield of 2.9%.

3. Silverlake Axis Ltd (SGX: 5CP)

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

On 21 December, the firm bought back four million shares at S$0.58 apiece. It spent around S$2.3 million for the share repurchase.

Silverlake is now selling at S$0.58 per share. This translates to a P/E ratio of 6.5 and a dividend yield of 3.5%.

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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.