Warren Buffett is a huge advocate of businesses buying back their stocks. He believes that share buybacks can reveal a thing or two about the company’s management.
He once said:
“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.”
With that, let’s look at three companies picked randomly that have repurchased their shares thus far during the week, as of market open today.
HRnetGroup Ltd (SGX: CHZ)
HRnetGroup is the biggest Asia-based recruitment agency in the Asia-Pacific region, excluding Japan.
On 22 October 2018, the recruitment firm repurchased 61,000 shares at S$0.86 each. It spent slightly below S$53,000 for the share buyback.
HRnetGroup shares closed at S$0.825 apiece on Thursday. This translates to a price-to-earnings (PE) ratio of 14 and a dividend yield of 2.8%.
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 22 and 23 October, the company bought back a total of 724,100 shares at a price range of between S$0.80 and S$0.825 per share. It spent slightly less than S$590,000 in all.
Hi-P shares ended Thursday at S$0.81 each, giving a PE ratio of 5 and a dividend yield of 7.4%.
Singapore Press Holdings Limited (SGX: T39)
Singapore Press Holdings (SPH) is one of Singapore’s largest media companies, and its businesses include newspapers, magazines, radio stations, advertising, as well as rental income from properties.
On 24 and 25 October, the media giant repurchased 871,300 shares ranging from S$2.62 to S$2.65 apiece, translating to a total cost of around S$2.30 million.
SPH shares last exchanged hands at S$2.64 each, giving a PE ratio of 15 and a dividend yield of 3.4%.
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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. The Motley Fool Singapore has a recommendation on HRnetGroup Ltd.