One of the best investors in the world, Warren Buffett, is a big advocate of companies buying back their shares for the correct reasons. And that is, if the firm’s shares are below their intrinsic values, and the reinvestment opportunities into the company are not as attractive.
With that, let’s look at three businesses picked randomly that have bought back their shares or units so far during the week, as of market open today.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange (SGX) is the sole stock market operator in Singapore.
On 29 and 30 October 2018, the company bought back a total of 148,000 shares at a price range of between S$6.74 and S$6.87 per share. The total cost came up to around S$1.0 million.
SGX shares closed at S$6.98 each on Thursday. This translates to a price-to-earnings (PE) ratio of 20 and a dividend yield of 4.7%.
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 30 October, the media outfit repurchased 500,000 shares at S$2.59 per share, spending slightly below S$1.30 million.
Shares in SPH ended at S$2.64 apiece on Thursday. The company was selling at a PE ratio of 15 and had a dividend yield of 3.4%.
Keppel REIT (SGX: K71U)
Keppel REIT invests in commercial properties in Singapore and Australia. In Singapore, it owns Ocean Financial Centre (99.9% interest); Bugis Junction Towers (full interest); and a one-third stake each in One Raffles Quay, and Marina Bay Financial Centre (office Towers 1, 2 and 3, and Marina Bay Link Mall). In Australia, it has assets in Sydney, Melbourne, Brisbane and Perth.
On 30 and 31 October, and 1 November, the REIT repurchased 3,507,600 units ranging from S$1.13 to S$1.14 apiece, translating to a total cost of around S$3.97 million.
Keppel REIT units last exchanged hands at S$1.13 each on Thursday, giving a price-to-book ratio of 0.8 and a distribution yield of 5.0%.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Singapore Exchange Limited. Motley Fool Singapore contributor Sudhan P owns shares in Singapore Exchange Limited.