Share buybacks can be beneficial for shareholders if done for the correct reasons. Here are three stocks picked at random that have repurchased their shares thus far during the week, as of market open today.
Stamford Land Corporation Ltd (SGX: H07)
Stamford Land is Australasia’s largest independent owner and operator of luxury hotels. It has a portfolio of prime hotels and investment properties in Australia and New Zealand.
On 1 August 2018, the company bought back 1,140,900 shares at S$0.48 per share. The cost came up to around S$548,500. The recent share buyback is the first for the company in recent history.
Stamford Land shares closed at S$0.495 apiece on Thursday. This translates to a price-to-book (PB) ratio of 0.8 and a dividend yield of 2%.
AEM Holdings Ltd (SGX: AWX)
AEM provides handling and test solutions for customers who produce microprocessors, high-speed communications, Internet of Things devices, and solar cells.
On 2 August, AEM bought back 100,000 shares at S$0.745 per share. It spent slightly less than S$75,000 for the share buyback. The repurchase comes hot on the heels of its shares plunging drastically after announcing the latest earnings results.
Shares in AEM closed at S$0.735 each on Thursday. The company is going at five times trailing earnings and has a dividend yield of 5.3%.
Sembcorp Marine Ltd (SGX: S51)
Sembcorp Marine is one of the world’s largest oil rig builder. It is part of the conglomerate, Sembcorp Industries Limited (SGX: U96), which is a Straits Times Index (SGX: ^STI) component. Sembcorp Industries has a 61% ownership in Sembcorp Marine.
On 2 August, Sembcorp Marine repurchased 100,000 shares at S$1.7765 apiece, translating to a cost of around S$177,900.
Shares in Sembcorp Marine ended Thursday at S$1.77 each. This gives a PB ratio of 1.6 and a dividend yield of 0.6%. It has no trailing earnings to speak of.
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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 owns shares in Sembcorp Industries Limited.