Billionaire investor Warren Buffett is a huge advocate of firms buying back their shares for the correct 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 check out three companies picked at random that have repurchased their shares thus far during the week, as of market open today.
Stamford Land Corporation Ltd (SGX: H07)
Stamford Land is Australasia’s largest independent owner and operator of luxury hotels. It has a portfolio of prime hotels and investment properties in Australia and New Zealand.
On 26, 27, 28 and 29 November 2018, the property company repurchased a total of 897,500 shares at a price range of between S$0.49 and S$0.495 per share. The total cost came up to around S$441,600.
Stamford Land shares closed at S$0.49 each on Thursday, translating to a price-to-book (PB) ratio of 0.8 and a dividend yield of 2.0%.
Tuan Sing Holdings Limited (SGX: T24)
Tuan Sing is a regional investment holding company with interests mostly in property development, property investment and hotel ownership.
On 28 November, the company bought back 1,133,400 shares at S$0.34 per share, spending slightly less than S$386,600 for the share buyback exercise.
Shares in Tuan Sing closed at S$0.35 apiece on Thursday. The firm was going at a PB ratio of 0.4 and a dividend yield of 1.7% at that price.
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 28 November, the firm repurchased 390,000 shares ranging from S$0.975 to S$0.99 apiece, giving a total cost of around S$384,200.
SingPost shares last changed hands at S$0.985 each on Thursday. The stock price translates to a price-to-earnings ratio of 23 and a dividend yield of 3.6%.
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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.