Warren Buffett is someone who actively encourages companies to buy back their shares if the conditions are right.
He once opined:
“What you’d like to do as an investor is hook them up to a machine and run a polygraph to see whether it’s true. Short of a polygraph the best sign of a shareholder-oriented management — assuming its stock is undervalued — is repurchases. A polygraph proxy, that’s what it is.”
On that note, let’s look at three companies picked at random that have repurchased their shares thus far during the week, as of market open today.
Oxley Holdings Ltd (SGX: 5UX)
Oxley is a home-grown property developer and investor with a presence across 12 geographical markets, including Singapore, Indonesia, China, and the United Kingdom.
On 9 and 10 April 2018, the firm bought back a total of 2,000,000 shares at a price range of between S$0.47 to S$0.495. It spent slightly below S$968,000 for the repurchase.
Oxley shares last changed hands at S$0.495 on Thursday. This gives a price-to-book (PB) ratio of 1.6 and a dividend yield of 2.8%.
CapitaLand Limited (SGX: C31)
CapitaLand is one of Asia’s largest real estate firms with a global portfolio of assets such as integrated developments, shopping malls, and offices.
On 9, 10, 11 and 12 April, the property outfit bought back a total of 6,478,200 shares at a price range of between S$3.60 and S$3.69 per share. The total cost was around S$23.7 million.
CapitaLand’s shares closed at S$3.66 on Thursday. This translates to a PB ratio of 0.8 and a dividend yield of 3.3%.
Oversea-Chinese Banking Corporation Limited (SGX: O39)
Oversea-Chinese Banking Corporation, or OCBC for short, is Singapore’s longest established local bank and is one of the world’s most highly-rated banks.
On 9, 10, 11 and 12 April, OCBC repurchased 800,000 shares at a price range of between S$12.77 and S$12.94 apiece. The total cost was close to S$10.3 million.
Shares of OCBC ended at $12.84 on Thursday, giving a PB ratio of 1.4 and a dividend yield of 2.9%.
- Singapore’s Top 5 Dividend-Paying Blue-Chip Stocks
- 3 Reasons Dividend Investors Should Be Wary Of StarHub Ltd’s High Dividend Yield
- 3 REITs With a Distribution Yield of More than 8%
- Would Warren Buffett Be Interested in APAC Realty Ltd, One of the 30 Best Stocks in Singapore for 2018?
- Institutional Investors Have Been Buying These 3 Stocks
- 2 REITS That Have Delivered Strong Performances Recently
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 doesn't own shares in any companies mentioned.