Share buybacks can be a good thing if done for the right reasons. And that is, if the company’s shares are undervalued, and the reinvestment opportunities into the company are not as attractive.
On that note, let’s look at three companies picked at random that have bought back their shares so far during the week, as of market open today.
Singapore Post Limited (SGX: S08)
Singapore Post has a history stretching back to 150 years. The company currently handles e-commerce logistics, as well as provides mail and logistics solutions in Singapore and around the world.
On 15 October 2018, the postal outfit bought back 390,000 shares at a price range of between S$1.05 and S$1.07 per share, translating to a total cost of around S$415,000.
Singapore Post shares ended Thursday at S$1.05 each. This gives a price-to-earnings (PE) ratio of 23 and a dividend yield of 3.3%.
City Developments Limited (SGX: C09)
City Developments Limited, or CDL for short, is a Singapore-based property and hotel conglomerate with a network covering 100 locations in 28 countries and regions.
On 15 to 18 October, the property company repurchased 400,000 shares ranging from S$8.16 to S$8.41 apiece, translating to a cost of around S$3.32 million.
CDL shares last changed hands at S$8.24 apiece on Thursday, giving a price-to-book ratio of 0.7 and a dividend yield of 1%.
Hi-P International Ltd (SGX: H17)
Hi-P is an integrated contract manufacturer providing a one-stop solution for customers from various industries such as telecommunications, consumer electronics, computing and peripherals.
On 15 to 18 October, the company bought back a total of 1,648,100 shares ranging from S$0.83 to S$0.86 per share, translating to a total cost of around S$1.39 million.
Shares in Hi-P last traded on Thursday at S$0.83 each. This gives a trailing PE ratio of 5 and a dividend yield of 7.2%.
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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.