Share buyback is one of the best ways that a company can create value for its shareholders if it sees no immediate growth opportunities to use the money for. Share repurchases could also be a signal that management is confident enough of the company’s future to re-invest in itself.
On that note, let’s check out three companies picked at random that have repurchased their shares thus far during the week, as of market open today.
SingHaiyi Group Ltd (SGX: 5H0)
SingHaiyi derives income through property development, property investment, property management, and real estate fund management activities. Its geographical markets are mainly in Singapore and the US.
On 19, 20, 21 and 22 November 2018, the property outfit bought back a total of 2,843,800 shares at a price range of between S$0.07871 and S$0.082 per share. The total cost came up to S$227,385.
SingHaiyi shares closed at S$0.079 each on Thursday. This translates to a price-to-book (PB) ratio of 0.5 and a dividend yield of 3.8%.
Straits Trading Co Ltd (SGX: S20)
Straits Trading has stakes in real estate, hospitality, resources and investments across the Asia-Pacific region.
On 19, 20, 21 and 22 November, the company bought back a total of 29,600 shares at S$2.06 per share. It spent S$61,118 in all for the share buyback.
Shares in Straits Trading closed at S$2.07 apiece on Thursday, giving a PB ratio of 0.6 and a dividend yield of 2.9%.
Olam International Ltd (SGX: O32)
Olam is a global agri-business supplying food, ingredients and raw materials, and operating in 66 countries.
On 19, 21 and 22 November, Olam repurchased 800,000 shares ranging from S$1.70 to S$1.76 apiece, translating to a total cost of around S$1.38 million. Before 2018, the last time Olam bought back its shares was in 2016. To know about the company’s latest 2018 third-quarter earnings, you can head here.
Olam shares ended Thursday at S$1.71 each. This translates to a price-to-earnings ratio of 11 and a dividend yield of 4.4%.
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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.