MENU

3 Companies That Have Bought Back Their Shares This Week

Warren Buffett is someone who strongly encourages companies to buy back their shares if the conditions are right. In his 1984 Letter to Shareholders, he opined:

“When companies with outstanding businesses and comfortable financial positions find their shares selling far below intrinsic value in the marketplace, no alternative action can benefit shareholders as surely as repurchases.”

Let’s take a look at three companies picked at random that have repurchased their shares thus 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 operates three business segments – Postal, Logistics and eCommerce – currently.

On 8 and 11 January 2018, the company clawed back from the market 600,000 shares at a price range of between S$1.24 and S$1.25 per share. It spent around S$748,000 in total for the share buyback.

The firm’s shares closed at S$1.24 on Thursday. This translates to a trailing price-to-earnings (P/E) ratio of close to 267 and a yield of 1.6%.

2. 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 8, 9, 10 and 11 January, OCBC repurchased 800,000 shares at a price range of between S$12.89 and S$12.97 apiece. The total cost was around S$10.4 million.

Shares of OCBC ended Thursday at S$12.90, giving a price-to-book ratio of 1.4 and a dividend yield of 2.8%.

3. Silverlake Axis Ltd (SGX: 5CP)

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

On 11 January, the firm bought back 3,019,400 million shares at S$0.5732 apiece. It spent around S$1.7 million for the share repurchase.

Silverlake’s shares closed at S$0.575 on Thursday. This translates to a P/E ratio of 6.5 and a dividend yield of 3.5%.

There are 28 surprising and important things we think every Singaporean investor should know--and we've laid them all out in The Motley Fool Singapore's new e-book. Packed with information and insights, we believe this book will help you be a better, smarter investor. You can download the full e-book FREE of charge--simply click here now to claim your copy.

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.