Somero Enterprise Share Discussion Threads

[discodave4] 12/7/2016 09:00

Thanks chaps, hadn't thought about that!, duh.DD

[smallcapinvestor1] 12/7/2016 08:53

Dollar earner where eps is calculated against a gbp share price will of course make a difference to the p/e multiple.

[interceptor2] 12/7/2016 08:51

At the year end when reported dollar earnings are converted in pounds, the EPS figure in pence will be higher if sterling remains weak.

[cockerhoop] 12/7/2016 08:48

Yes DD4 but the shareprice is in £!!!!

[discodave4] 12/7/2016 08:39

Solid results.This doesn't benefit from weak sterling though. It's a US company that reports in $ and 70% of its Rev is from North America.DD

[deanowls] 12/7/2016 08:38

They report in dollars so they will not be a difference there, the dividend will of course be worth more though.

[interceptor2] 12/7/2016 08:26

Very encouraging statement today and we are only half through the financial year.

A company which will benefit from overseas operations, is the type of company I want to be invested in at this time :o)

Where they state "This was led by particularly strong activity in North America; with China, the Middle East, and Europe" these four regions contribute 91% of total revenue.

Bodes well for remainder of the year if June's stronger performance continues.

[carcosa] 12/7/2016 08:14

Sounds to be ahead based on organic growth. Will likely be even better when exchange rate differences to last year are accounted for; although that will be based on a years average exchange rate, I assume. Makes 2017 look even better ;-)

[rivaldo] 12/7/2016 07:11

RNS - results for 2016 are already expected to be slightly ahead of expectations :o))

Knowing this company, they're likely to report a further jump in expectations later in the year:



"In its announcement on 6 June 2016, prior to the Company's annual general meeting, Somero highlighted overall results were tracking comfortably in-line with market expectations for the full year ending 31 December 2016 due to positive trading in the Company's core North American, European and Chinese markets. Somero is pleased to report that trading in June was significantly stronger than both the previous month and when compared to a year ago. This was led by particularly strong activity in North America; with China, the Middle East, and Europe each contributing satisfactorily to overall growth.

The strong performance in June and the continuation of the positive trading environment together with margin improvement and solid operating cash flow generation mean the Company now expects to report results slightly ahead of current market expectations for the full year ending 31 December 2016."

[interceptor2] 11/7/2016 19:49

Strong volume again today, SOM should be in focus now as a strong US$ earner with 70% of revenues from North America and 21% from ROW.

Good chance of a rerating here when on such a low valuation with a PER below 10 and net cash increasing each year. $12.6m now.

Not surprisingly I have been buying today :o)

[rivaldo] 08/7/2016 13:48

Superb June payroll figures in the USA just released seem to have set off some buying interest here:

[rivaldo] 06/7/2016 15:57

It does seem ridiculous. Non-residential/commercial construction in the USA in May continued at high levels and is forecast to continue to be so for the next year at least.

And once China cottons on to SOM's products it won't matter whether China's growth drops or not - the entire market will be there for SOM to grab as it has in the rest of the world.

[breaktwister] 06/7/2016 14:51

Great drop for those with cash. Topped up at 141. No debt here so this is being marked down on low volume alongwith. MM tree shake.

[breaktwister] 06/7/2016 13:08

Just noticed the volume leading to this drop - 19k shares!! Topped up.

[breaktwister] 06/7/2016 13:06

Are we due a trading update here? I see one on 7th July last year. Dropping alongwith all other equities might be a good time to buy in. Surely the US economy is still strong, China still growing, albeit more slowly than in the past. It seems to me the market is beginning to price in the risk of another global financial meltdown.

[rivaldo] 04/7/2016 07:39

Nice mention for SOM in this portfolio review:



"Somero emerged virtually unscathed from the Brexit correction. This is logical, as the business operates mainly in the USA. It isn’t heavily exposed to the UK, or indeed Europe."

[grahamburn] 23/6/2016 14:07

Though, of course, the dividends are paid in dollars.

[fugwit] 23/6/2016 14:06

You are of course quite right David.

[davidosh] 23/6/2016 13:53

The majority of Someros earnings are overseas and so surely any move downward for the pound would be positive when converting profits into sterling ?

[fugwit] 23/6/2016 13:05

Let's hope so, I attended the AGM where the conversation was positive so am expecting more of the same. Providing we don't end up with sterling in the pan post todays vote I am pencilling in 16p eps for FY16 as per brokers FC. Given balance sheet strength and quality of earnings I would like to see the PE rise to 15 giving a target price of £2.40/share.

[rivaldo] 23/6/2016 09:57

Indeed fugwit.

Hopefully we'll get a further half-year trading update next month on top of the positive AGM trading update (this year's AGM was almost a month later than last year).

I noticed that Ashtead's results a week or so ago were very well received, primarily because of the performance and outlook in their non-residential business in the USA. This should bode well for SOM.

[fugwit] 23/6/2016 08:46

To put that voracious demand for concrete in context, the CEO has mentioned a couple of times that China uses 30 times the amount of concrete that the US does per year.

[rivaldo] 09/6/2016 10:17

Shares Mag are positive on SOM today, noting that "in a meeting on the day of the announcement" the CEO said China is the place where SOM have the biggest upside due to its voracious demand for concrete.

The article concludes that SOM's shares are "appealing" at 160p.