Somero Enterprise Share Discussion Threads

[smallcapinvestor1] 18/12/2016 09:14

This is not a massive sell note at all. Don't be a moron.The article suggests bank some profits and sell 30-50% of the holding.

[larva] 18/12/2016 07:58

Mail on sunday massive sell note

SELL

[battlebus2] 17/12/2016 21:10

Midas suggests take profits in Somero.

[cfro] 13/12/2016 10:25

I suppose the closer xmas jogs on, the more likely an update will be issued early Jan.

Good to see new highs today..

[rivaldo] 13/12/2016 09:40

New highs now after £28,000 of buys in quick succession just now.

[interceptor2] 06/12/2016 14:22

It is interesting to look back at past trading updates in the last two years, both have been released after the year 31st December on 7th and 20th January respectively, and both were ahead with the 7th Jan 16 materially ahead.

In both statements they said that December had been particularly strong, so I think they are lightly to wait until they can report on December as well. Another positive ahead trading update would be most welcome and I think the probability of this as an outcome is high.

Outlook statement will be very interesting now that increased infrastructure spending is on the horizon in the US.

Per of 12.8 for current year is still low imo.

Edit, posts crossed rivaldo...........

[rivaldo] 06/12/2016 14:13

Cfro, prior year updates were on 7th and 20th January, so not long to wait but not any day now. Unless they're way ahead of expectations :o))

[cfro] 06/12/2016 13:53

Must be a trading update here due any day i would have thought?

[rivaldo] 06/12/2016 12:07

AHT today reported Q2 results ahead of expectations, with the full year also to be ahead of expectations. In particular, Sunbelt in the USA continues to thrive.

Enough said.

[interceptor2] 30/11/2016 11:33

For info

Generally, a Form W-8BEN will remain in effect for purposes of establishing foreign status for a period starting on the date the form is signed and ending on the last day of the third succeeding calendar year, unless a change in circumstances makes any information on the form incorrect. For example, a Form W-8BEN signed on September 30, 2015, remains valid through December 31, 2018. However, under certain conditions a Form W-8BEN will remain in effect indefinitely until a change of circumstances occurs.

[davebowler] 30/11/2016 10:40

TD Waterhouse email due to holding SOM;
Your current W-8BEN form expires on 31 December 2016 which means that, unless you renew, you’ll be unable to hold or trade U.S. securities from 1 January 2017 onwards. (Please ignore this message if you’ve renewed your W-8BEN any time within the last two weeks).

If you’re planning any investments in U.S. securities for 2017 and beyond, we recommend that you renew your W-8BEN now to avoid any interruption to your TD services. It’s easy to forget about these things, especially in the run up to the festive period, so if you renew today you’ll be ready for the New Year.

Your U.S. securities will be sold if you don’t renew
As you’re unable to hold U.S. securities without an up-to-date W-8BEN form, we’ll need to sell any U.S. securities you currently hold. We’ll do this without further notice on or after 1 January 2017. We’re unable to say when this will be but you’ll receive the valuation that applies at the time we place the trade. If we need to sell your U.S. securities, online trading commission plus a £40.00 fee will apply to each sale we place.

It’s easy to renew and the good news is that once you do you’ll be all set up to continue trading U.S securities with TD until the end of 2019.

[rivaldo] 28/11/2016 07:21

Tipped on T.M.F:



"Could this Trump-friendly stock flatten the competition in 2017?
By The Motley Fool Nov 25, 2016

With a market cap of only £128m, it's not surprising if many investors haven't heard of Somero Enterprises(LSE: SOM). But thanks to Donald Trump's US election win and his commitment to boosting infrastructure, I think this company could be receiving a lot more attention over the coming months and years. Let me explain why.

Amazing returns

On initial inspection, Somero hardly sets the pulse racing. It manufactures laser-guided equipment used for spreading and levelling volumes of concrete for commercial flooring and other horizontal surfaces. So far, so dull.

Nevertheless, a quick look at the company's share price performance over the past few years should make a lot of investors sit up and take notice. Back in 2011, Somero's shares could be picked up for just 10p. Today, thanks to sizeable increases in revenue, net profits multiplying from $1m to $12m since 2012 and a notable jump since Trump's victory, the very same shares are priced at just over 226p each. Think about that. If you'd had the foresight (or fortune) to invest £1,000 in the company a few years ago, you'd now be looking at a pot of more than £22,000. That's quite a return.

But there are other attractions to Somero besides its rocketing share price. Returns on capital and operating margins have exploded over the past few years. Although not a share most would choose to invest in for income, the dividend has also been rising by double figures and an easily-covered payout of just over 3% is expected for 2017. The company has $12m in cash on its books and no net debt. Any other positives? You bet. On a forward price-to-earnings (P/E) of just below 11 for 2017, Somero's shares still look cheap to me.

As a company - albeit a cyclical one - I think Somero has a lot to offer investors. But how does it compare to other companies involved in infrastructure, such as £1.35bn cap property, residential, construction and services company Kier Group(LSE: KIE)?

Brexit-related risk

On a forecast P/E of 13, shares in Kier look reasonably priced. There's a chunky dividend yield of 4.8% to keep income investors interested and net profits look set to be substantially higher over the next two years (£105m and £117m in 2017 and 2018 respectively). At face value, Kier looks a pretty inviting investment.

Unfortunately, there's one big elephant in the room that I think could make the Sandy-based company's shares substantially more volatile than those of Somero Enterprises. Yes, you've guessed it: Brexit. In times of economic uncertainty, large infrastructure projects can be shelved or delayed, ultimately hurting Kier's bottom line. Given that the majority of its revenue comes from the US, Somero isn't quite as exposed to the consequences of our EU departure. Indeed, in its last set of results in September, CEO Jack Conney made reference to the latter's strong performance in its North American, European and Chinese markets. It's this geographical diversification that, in my opinion, will see Somero outperform stocks like Kier for the foreseeable future.

So long as you're willing to take on extra risk for the possibility of higher returns, I think Somero Enterprises warrants serious attention. I fully expect to see the company featuring on many watchlists before too long."

[rivaldo] 25/11/2016 08:52

Nice plug for SOM in this week's Shares Magazine:

"Will Lough, assistant manager on the River and Mercantile UK Long-Term Recovery GB00B614J053) fund and director of research, makes a similar case for Somero (SOM:AIM). The group specialises in the automatic levelling of concrete and has a significant business in the US. As such, it should be a beneficiary of any infrastructure boom as governments increasingly prioritise fiscal spending over monetary policy to boost their economies.

He adds: 'The group also sells a lot to groups building up warehouses, such as Amazon (AMZN:NDQ), who need their concrete completely flat to ensure that machinery can manoeuvre properly. Somero can benefit from growth in that market as well.'"

[rivaldo] 25/11/2016 07:54

I note that CRH and Ashtead jumped yesterday on further consideration of Trump's infrastructure plans. SOM had a quiet day....our turn today perhaps.

[cfro] 23/11/2016 13:11

Yep, into new highs again. :-)

[geraldus] 23/11/2016 12:38

This stock has certainly had the 'Trump' effect,I hope he follows through.

[rivaldo] 22/11/2016 12:14

Good news in this sector in general today with both the LVD bid and SFR stating they're trading ahead of expectations (both are holdings of mine!).

The sector is certainly warming up, and the posters above may be right about bid potential here given the weakness of the pound.

[smallcapinvestor1] 21/11/2016 10:54

I am very familiar with som having started investing at 10pA u.s. Bid is a possibility but i think a Chinese bid is more likely once they build up a reputation over there.The Chinese like to buy overseas brands and the opportunity in China is much bigger than the u.s.

[rivaldo] 21/11/2016 08:46

A £13k buy just reported at 222p, well above the full 220.5p published offer price.

Agreed cfro. A nice secure feeling here now with not only US infrastructure, but UK spending set to increase. Plus of course growth in China, India etc.

[cfro] 20/11/2016 17:51

Good post hpcg,

Like you i was also a little sceptical of the 'US AIM' tag, but have since realised that it is nothing to worry about whatsoever..

Also agree that SOM now looks an obvious takeover target but unless one came at a huge premium to current share price i would rather keep SOM for a longer term hold to let the US infrastructure 'story' really unfold here.

[mammyoko] 20/11/2016 09:50

Price to US purchaser is 20% cheaper after Brexit sterling fall

[hpcg] 19/11/2016 04:10

In addition to the business itself I would also think there is the potential for a large premium takeout. The business metrics, ROE, ROCE, margin, are excellent, whilst the valuation does not reflect that. The irony is that whilst AIM is loaded with overseas filth which has a dedicated following this has genuinely good credentials. I know I was in the looks to good to be true camp when I first purchased, but ironically I think opinions changes as the price goes up. Basically this is a good business to own as a shareholder, and thus also for another company, or even back to PE.

Edit - in addition, I can't think of any reason for a UK based shareholder to sell at this point in time. Nor really to think about it until it is a 12 cash adjusted multiple, or a 2.5% yield.

[interceptor2] 18/11/2016 16:06

Feeling like a rather powerful continuation breakout now, there isn't much else in the small cap sector that offers such high exposure towards US infrastructure spending. Think I will hold on tight here.

[cfro] 18/11/2016 13:16

Good to see more large scale accumulation here.