3 Companies That Have Bought Back Their Own Shares
Warren Buffett is one man who advocates companies buying back their own shares if the conditions are right. In his 1984 Letter to Shareholders, he opined that, “When companies with outstanding businesses and comfortable financial positions find their shares selling far below intrinsic value in the marketplace, no alternative action can benefit shareholders as surely as repurchases.”
On that note, let’s take a look at three companies that have repurchased their own shares this week.
1. Boustead Projects Ltd (SGX: AVM)
Boustead Projects is an industrial real estate solutions provider in Singapore, with core engineering expertise in the design-and-build, and development of industrial facilities for multinational corporations and local enterprises. Listed in the first half of 2015, the firm is a 51%-owned subsidiary of Boustead Singapore Limited (SGX: F9D).
On 10 July, Boustead Projects bought back a total of 18,000 shares at S$0.90 per share, amounting to a total cost of close to S$16,200.
At the current price of S$0.90, it is trading at a price-to-book ratio of 1.3 and has a yield of 1.7%, excluding special dividends.
2. SIA Engineering Company Ltd (SGX: S59)
Part of the Straits Times Index (SGX: ^STI), SIA Engineering provides base and line maintenance of aircraft, among others. It is around 78% owned by our flag carrier, Singapore Airlines Ltd. (SGX: C6L).
On 10 July, SIA Engineering repurchased 20,300 shares ranging from S$4.05 to S$4.08 per share, translating to a total cost of around S$83,000.
The company is currently trading at a price-to-earnings (PE) ratio of 13.7 and sports a dividend yield of 3.2%. Shares of SIA Engineering are going at S$4.05 apiece.
3. Singapore Post Limited (SGX: S08)
Postal and logistics services provider, Singapore Post, is no stranger to Singaporeans. With a history stretching back 150 years, it currently operates three business segments – Postal, Logistics and eCommerce. Singapore Telecommunications Limited (SGX: Z74) is the largest shareholder of Singapore Post with a stake upwards of 20%.
On the 11 July, the company bought back a total of 200,000 shares at a price range of between S$1.365 and S$1.37 per share. The total cost came up to approximately S$274,000.
Singapore Post is currently going at a PE ratio of around 160 and yields 2.5%. At the time of writing, the shares were trading at S$1.38.