Share repurchases can be a good thing if done for the correct reasons. And that is, if the company’s shares are undervalued, and the reinvestment opportunities into the firm are not as attractive.
On that note, let’s check out three companies picked at random that have repurchased their shares so 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 7 January 2019, SingPost bought back 700,000 shares at a price range of between S$0.925 and S$0.935 per share. The cost came up to around S$653,000.
SingPost’s share price closed at S$0.94 on Thursday. This translates to a price-to-earnings (PE) ratio of 23 and a dividend yield of 3.7%.
SingHaiyi Group Ltd (SGX: 5H0)
SingHaiyi derives income through property development, property investment, property management, and real estate fund management activities. Its geographical reach is in Asia, Australia, and the US.
On 7, 8 and 10 January, SingHaiyi repurchased a total of 866,800 shares at a price range of between S$0.08789 and S$0.09 per share. It spent slightly less than S$77,600 in all.
Shares in SingHaiyi ended Thursday at S$0.091 apiece. The firm is going at a price-to-book ratio of 0.6 and has a dividend yield of 3.3%.
Silverlake Axis Ltd (SGX: 5CP)
Silverlake is a software solutions provider mainly servicing the financial services sector.
On 8, 9 and 10 January, Silverlake bought back a total of five million shares ranging from S$0.4083 to S$0.4118 apiece, translating to a total cost of around S$2.05 million.
Silverlake’s share price closed Thursday at S$0.41. This gives a PE ratio of 21 and a dividend yield of 2.8%.
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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.