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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 opined:

“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 thus far during the week, as of market open today.

CapitaLand Limited (SGX: C31)

CapitaLand is one of Asia’s largest real estate firms with a global portfolio of assets such as integrated developments, shopping malls, and offices.

On 19, 20, 21 and 22 March 2018, the property outfit bought back a total of 4,705,500 shares at a price range of between S$3.66 and S$3.68 per share. The total cost came up to around S$17.3 million.

CapitaLand’s shares closed at S$3.64 on Thursday. This translates to a price-to-book (PB) ratio of 0.8 and a dividend yield of 3.3%.

Tiong Seng Holdings Limited (SGX: BFI)

Tiong Seng, with a history going back to 1959, is a construction and civil engineering company based in Singapore. Its past construction projects include Parkroyal @ Upper Pickering Street, NTUC Fairprice Warehouse & Office and Mediacorp at Mediapolis @ One North.

On 19, 20, 21 and 22 March, the company bought back a total of 502,900 shares at a price range of between S$0.39 and S$0.395 per share. It spent slightly less than S$197,900 in all.

Tiong Seng Holdings’ shares closed at S$0.39 on Thursday. The firm is going at six times its trailing earnings and has a dividend yield of 3.8%.

SIA Engineering Company Ltd (SGX: S59)

SIA Engineering is a provider of base and line maintenance of aircraft, fleet management, and repair, modification and testing of aircraft components.

On 21 and 22 March, the aircraft engineering firm repurchased 18,600 shares ranging from S$3.19 to S$3.20 apiece, translating to a total cost of around S$59,560.

Shares of the company ended Thursday at S$3.19. This gives a trailing price-to-earnings ratio of 20 and a dividend yield of 4.1%, excluding special dividend.

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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.