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3 Little-Known Companies With Significant Share Buyback (Guest Post)

3 Little-Known Companies With Significant Share Buyback (Guest Post)

There was a revival in stock prices since the global collapse in prices during March. However, the recovery in stock prices were not even. Some industries such as Technology recovered faster than other traditional sectors such as engineering.

As a result, some companies took the opportunity to employ share buybacks. Share buybacks are usually administered as the companies feel that the stock prices are undervalued. The management of the companies usually have a better understanding of the finances and future results. Buybacks could be regarded as a confidence booster to the company’s future results.

We have scouted the SGX market and have identified 3 companies for your considerations.

#1 Singapore Shipping Corporation Ltd

This post was originally posted here. The writer, James Yeo is a veteran community member and blogger on InvestingNote, with username known as Smallcapasia and has 864 followers.

Singapore Shipping Corporation Limited (SSC) is well-established shipping group in Asia and listed on the main board of SGX. Its businesses include ship owning, ship management, shipping agency & Terminal Operations, and Logistics Services. SSC owns 6 vessels and charters it for the international market.

As of the latest annual report, SSC’s revenue decreased by 3.1% to USD 46.7 million. Its net profit decreased slightly by 10.9% to USD 9.2 million. Free cash flow came in at a healthy level of USD 11.4 million. As a result, cash balance of the company was at a high of USD 30.5 million. Results were slightly weaker due to the slightly weaker shipping market at the end of 2019.

SSC has been purchasing its shares back since 6th July 2020. In total it purchased 249,000 shares from the market. Total transactional value of all the shares amounted to $68,598 and share prices bought back were in the range of $0.25-0.26.

SSC last closed at $0.26, which values it at a P/E ratio of 8.46 and dividend yield of 3.85%.

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3 Companies With Insiders Buying Shares Recently (Guest Post)

3 Companies With Insiders Buying Shares Recently (Guest Post)

Occasionally, I would like to look at insider or share buybacks to see if I am lucky to spot any hidden gems. In fact, this is also one of the more commonly used strategies by investors. Why is that so?

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This post was originally posted here. The writer, James Yeo is a veteran community member and blogger on InvestingNote, with username known as Smallcapasia and has 864 followers.

As the legendary Fund manager Peter Lynch once said, “Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.”

In short, a company’s management would only purchase the stock or initiate share buybacks when they perceive that the stock is undervalued. Hence, it makes sense for investors (like You and Me) to do some further research to see if the stock is really a bargain per se.

With these in mind, let’s zoom into 3 interesting companies I’ve cherry picked which have seen insiders buy shares recently.

1. iFAST Corporation Ltd

 

iFAST is present in Hong Kong, Malaysia, China and India. The Group offers access to investment products including unit trusts, bonds and Singapore Government Securities, stocks and exchange traded funds, and insurance products.

It also provides services such as online discretionary portfolio management services, research and investment seminars, financial technology solutions, and investment administration and transaction services to financial advisory firms, financial institutions, banks, multinational companies, as well as retail and high net worth investors in Asia.

On 1st June 2020, its CEO and Chairman Lim Chung Chun purchased 124,000 shares through market transactions. Shares were bought at approximately $1.10 per share. After the acquisition, it increased his percentage of shares held to 22.3%.

As of the latest Q1 2020 report, iFAST’s revenue increased by 41.5% to $38.5 million. Net profit increased by a drastic 132.1% to $3.6 million. Free cash flow was at $2.8 million. Cash balance is at $21 million, which is enough for it to maintain its operations.

iFAST last closed at $1.10, which values it at a P/E ratio of 26.2 and dividend yield of 2.86%.

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