Share buybacks can be a sensible thing to do when a company’s shares are undervalued, and the firm does see any other need for the money. On that note, let’s look at three companies that have repurchased their shares thus far during the week, as of market open today.
Singapore Post Limited (SGX: S08)
Singapore Post, or SingPost for short, 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 13 November 2018, SingPost bought back 400,000 shares at a SingPost share price range of between S$0.975 and S$0.985 per share, translating to a total cost of slightly below S$394,000.
SingPost shares closed at S$0.96 on Thursday, giving a price-to-earnings (PE) ratio of 24 and a dividend yield of 3.7%.
Straco Corporation Ltd (SGX: S85)
Straco owns and operates tourism attractions in China and Singapore. In China, the company owns the Shanghai Ocean Aquarium, Underwater World Xiamen, and Lintong Lixing Cable Car attractions. Over in Singapore, Straco Corporation has a majority stake in the iconic observation wheel, Singapore Flyer.
On 13, 14 and 15 November, the company repurchased a total of 98,900 shares at a price range of between S$0.685 and S$0.735 per share. Straco spent slightly above S$70,000 in all.
For the company’s 2018 third-quarter earnings update, you can head here.
Shares in Straco closed at S$0.685 each on Thursday, translating to a PE ratio of 14 and a dividend yield of 3.7%.
SATS Ltd (SGX: S58)
SATS is a provider of food solutions and gateway services solutions. Under the food solutions business, it provides services such as in-flight catering and institutional catering. Under the gateway services solutions segment, it is involved in ground handling, security services, and baggage handling, among other services.
On 14 and 15 November, SATS bought back a total of 450,900 shares ranging from S$4.80 to S$4.81 apiece, amounting to a total cost of around S$2.17 million.
To know how SATS performed for its latest quarter, you can check out the link here.
SATS shares ended Thursday at S$4.85 apiece. This gives a trailing PE ratio of 21 and a dividend yield of 3.7%.
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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 Straco Corporation Ltd and SATS Ltd. Motley Fool Singapore contributor Sudhan P owns shares in Straco Corporation Ltd and SATS Ltd.