Somero Enterprise Share Discussion Threads

[3rd eye] 15/3/2017 07:56

Good point FF, rather have a special divi than a buyback. Should appeal.

[cfro] 15/3/2017 07:54

Tremendous results here.

By my calcs i make that EPS of 22.5p, so a substantial beat in the end. Massive increase in divi is most welcomed.

I really like the bit about the low penetration into China, so there should be absolutely loads to shoot for there in that one country alone...

[fredfishcake] 15/3/2017 07:54

There was mention of a capital return earlier, and buried low down in the results - nice to see that we can expect this as a special div (not a buyback):

"The Board will then assess the level of excess cash that may be subject to distribution back to shareholders through a special dividend later in 2017."

[panic investor] 15/3/2017 07:52

Wonderful results - sounds great going forward too

[3rd eye] 15/3/2017 07:32

FLASH: Somero lifts FY pretax profit, dividend
15 March 2017 | 7:07 AM

[3rd eye] 15/3/2017 07:19

Fantastic results, records broken on all headings.

The Outlook statement is very bullish.

Current Trading and Outlook

The solid momentum in North America at the end of 2016 has carried over into 2017 driven by demand for replacement equipment, technology upgrades, and interest in new products. We remain encouraged by the solid level of non-residential construction activity in the US, a view that is supported by reports from our customers of lengthy project backlogs that extend well into 2017. Proposals for US corporate tax reform and fiscal policy programs to invest in US infrastructure are additional factors reinforcing our confidence in North American growth prospects.

In Europe, the 2016 acceleration of recovery from the recessionary low point in 2011 is expected to carry forward into 2017, driven by demand for replacement equipment, technology upgrades, and interest in new products, much like we see in the US which is encouraging for the future.

In China, the interest level in our products remains healthy and we are excited by the growth opportunity in front of us. In particular, we see solid interest in our S-158 entry level product, which opens up the productivity oriented market segment to us that we expect to help us grow our customer base and offer future up-sell opportunities. We also continue to see traction with our market development efforts to promote wide-placement methods and flatness, levelness standards. These factors, along with our very low market penetration in China, point to solid growth prospects for 2017 and beyond.

In Latin America, we are expecting stable performance from Mexico and Chile, and we have begun to see modestly increased activity in Brazil, and are optimistic for a satisfactory contribution to growth from the other countries in the region. In our other markets, including the Middle East, Australia, India, Scandinavia, Korea, and Southeast Asia, we expect to see significant opportunities in 2017 and are encouraged by the market climate across this broad territory.

The Board believes the Company is well-positioned to capitalize on the many opportunities we see across our portfolio of markets and products and we remain confident Somero is poised to deliver another year of profitable growth to our shareholders in 2017.

[smallcapinvestor1] 15/3/2017 07:17

This is so fantastic. What a company. Im a buyer at the open.Hands off mr buffett this one is ours!!

[rivaldo] 15/3/2017 07:14

Terrific results once again :o))

As you say Cfc, 27c EPS beats the 24.4c Finncap forecast by some margin - and is ahead of THIS year's 26.1c EPS forecast too. The 2017 forecast will presumably have to be lifted somewhat, to say 29c-30c EPS.

And there's now a $20m+ cash pile :o)) That's almost 15% of the m/cap in itself.

The 11.1c dividend is also a shade ahead of forecasts.

Remarkable that two new products are already generating $10.6m of sales, only 2 years after development.

Above all, the outlook statement is very, very positive, with a good start to 2017 in the USA and China also looking good. Overall:

"The Board believes the Company is well-positioned to capitalize on the many opportunities we see across our portfolio of markets and products and we remain confident Somero is poised to deliver another year of profitable growth to our shareholders in 2017."

[croasdalelfc] 15/3/2017 07:04

Riv - 27c :0

[cfro] 14/3/2017 17:40

Looking forward to tomorrow. :-)

[grabster] 14/3/2017 16:09

I've topped up regardless and have got this one right more often than not, so am happy to risk it again ;-)

I would not be surprised to see a sharp 15% rise in the short term, and twice that before the end of the year.

[battlebus2] 14/3/2017 15:54

Profit takers lurking I'd suspect......

[grabster] 14/3/2017 15:49

Share price winding up nicely to close at the day's high by the looks of it - ahead of
Results tomorrow.

[croasdalelfc] 14/3/2017 07:31

Hi Rivaldo - one more day to wait :)Either way EPS should be 19-22p minimum giving a PER of 12-14.Any rerating should drive this to 320p- let's wait and see ;)

[rivaldo] 13/3/2017 15:49

That's too bullish for me Cfc. Finncap's forecast for last year is 24.4c, which was the upgraded forecast after January's trading update. I'm therefore hoping for anything from 25c upwards. Better to have reasonable expectations and have them beaten....

This year's forecast is currently 26.1c, but with a decent outlook in the USA, Europe and the UK, plus Chinese and Indian expansion continuing, I'd hope this might be increased somewhat.

[croasdalelfc] 13/3/2017 08:52

Ok I'm going for 30 cents EPs which is approx 24pA rerating to North of 300p must be on the cards. 350p would be fair value if 2017 has started well.

[mjmp1] 09/3/2017 15:23

RNS Trading update on 10/01/2017 states
"The change becomes effective with the final 2016 dividend to be announced with Somero's final results for the year ending 31 December 2016 which is scheduled to be released on 15 March 2017."

[chashley1806] 06/3/2017 08:56

Hi

Does anybody know when Somero will release their final results for 2016? I recall that, last year, it was around this time.

(Am invested in Somero and, like smallcapinvestor1, believe that the company shows all the characteristics that Buffett likes with accordingly some great prospects for the company. In particular, I note that the Return on Equity has been consistently high over the past few years - another Buffett criterion.)

[smallcapinvestor1] 03/3/2017 13:45

River and mercantile adding to holding. Adding 160k shares takes them over 5%

[smallcapinvestor1] 02/3/2017 06:43

US boomingChina cement market now improving again, 30 times the size of the u.s. Marketeurope recovery now entrenched.Excess cash and special dividendsMajor investments complete and paid for.Competitive moatYield almost 4%P/e about 11Global monopoly Whats not to like.Its a classic buffett situation.

[thorpematt] 01/3/2017 21:04

He can print it. I wouldn't worry about all that - just keep looking at the chart!

[runthejoules] 01/3/2017 18:51

Let this be a lesson to me. When SHARES tells you to buy, buy! However, right now this looks a bit toppy to my untrained eye, and I'm not sure where Trump's going to get the cash from...

[rivaldo] 01/3/2017 08:27

Trump last night called for a $1 trillion infrastructure spending programme in the USA: