Billionaire investor Warren Buffett is a huge advocate of businesses buying back their shares if the conditions are right. He believes that share repurchases can reveal a thing or two about the company’s management.
On that note, let’s check out three companies picked at random that have repurchased their shares so far during the week, as of market open today.
Japfa Ltd (SGX: UD2)
Japfa is a pan-Asian, industrial agri-food company headquartered in Singapore.
On 24 September 2018, the company bought back 300,000 shares at a price range of between S$0.615 and S$0.625 per share. The cost came up to slightly above S$187,000.
The agri-food company’s shares have been declining of late, probably due to the weakening of the Indonesian rupiah against the US dollar. Last year, a significant amount of its revenue came from Indonesia while it reports its earnings in the greenback.
Japfa shares closed at S$0.635 each on Thursday. This translates to a price-to-earnings (PE) ratio of 17 and a dividend yield of 0.8%.
Singapore Post Limited (SGX: S08)
Singapore Post has a history stretching back to 150 years. The firm currently handles e-commerce logistics, as well as provides mail and logistics solutions in Singapore and around the world.
On 25 September, the postal outfit bought back 440,000 shares at a price range of between S$1.11 and S$1.13 per share. It spent slightly more than S$493,000.
On Thursday, shares in Singapore Post closed at S$1.13 apiece. The firm was selling at a PE ratio of 26 and had a dividend yield of 3.1%.
Silverlake Axis Ltd (SGX: 5CP)
Silverlake is a software solutions provider mainly servicing the financial services sector.
On 26 and 27 September, the firm repurchased 1,255,600 shares ranging from S$0.4268 to S$0.4331 each, translating to a total cost of slightly below S$541,000.
Silverlake shares last changed hands on Thursday at S$0.435 apiece. This gives a trailing PE ratio of 25 and a dividend yield of 2.8%, excluding special dividends.
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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.