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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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‘What is the Best Price to Buy Shares of this Company?’ (Guest Post)

‘What is the Best Price to Buy Shares of this Company?’ (Guest Post)

Recently, I have been getting quite a number of emails seeking my inputs on the “best price” they should purchase shares of a company. For the benefit of everyone, I would like to share with you my personal opinion on this question in my post today – from the perspective of both a short-term swing trader and a long-term investor.

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 1100  followers.

 

To begin, in my personal opinion, there is no such thing as a “best price” you should buy shares of a particular company. Everyone (whether you are a short-term trader or a long-term investor) have their own preferred prices to buy/sell a company’s shares based on their own analyses – which explains why, at any price point, there are buy and sell transactions (because at any buy price, there will be people who feel comfortable to buy, and at the same time, there will also be people who are looking to sell – hence a transaction takes place between the buyer and seller.)

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