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3 Companies That Have Repurchased 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.

HRnetGroup Ltd (SGX: CHZ)

HRnetGroup, which debuted on our stock exchange in June 2017, is the biggest Asia-based recruitment agency in the Asia-Pacific region, excluding Japan. It currently operates in 10 Asian cities, with dominance in Singapore.

On 14, 15, 16 and 17 May 2018, the firm bought back a total of 2,012,900 shares at a price range of between S$0.825 and S$0.865 per share. The total cost came up to around S$1.70 million.

HRnetGroup shares closed at S$0.86 yesterday. This translates to a price-to-earnings (PE) ratio of 17 and a dividend yield of 2.7%.

Silverlake Axis Ltd (SGX: 5CP)

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

On 15, 16 and 17 May, the company bought back a total of 8,839,700 shares at a price range of between S$0.5366 and S$0.5509 per share. It spent slightly below S$4.81 million in all.

Shares of Silverlake ended Thursday at S$0.555. The firm is going at nine times its trailing earnings and has a dividend yield of 2.2%, excluding special dividends.

Venture Corporation Ltd (SGX: V03)

Founded in 1984 and headquartered in Singapore, Venture is a global electronics services provider that can support design, manufacturing, and e-fulfilment for high-mix, high-value and sophisticated products.

On 16 and 17 May, the firm repurchased 69,700 shares ranging from S$20.57 to S$21.51 apiece, translating to a total cost of around S$1.46 million.

Shares of the company closed at S$20.74 on Thursday. This gives a price-to-earnings ratio of 15 and a dividend yield of 2.9%.

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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.