Somero Enterprise Share Discussion Threads

[butchdogg] 26/9/2017 17:28

not sure, but gave up the 200DMA average on the drop, felt a bit manufactured tbh.

bounced of lower channel line. Stop loss is close for me.

[loopeyneuro] 26/9/2017 12:35

Why the drop?

[rivaldo] 19/9/2017 14:51

Encouraging report which indicates that non-residential construction in the USA is looking good not only for this coming Q4, but also for 2018.

Also interesting that Chinese demand for construction equipment has been picking up:



"Caterpillar’s (NYSE:CAT) stock touched a new all-time high Monday on the heels of a bullish report that forecasted strong demand for construction equipment.

Analysts at UBS upgraded Caterpillar to “buy” from “neutral,” citing a positive earnings outlook. UBS also hiked its price target to $140 from $116. The investment bank noted that private non-residential construction activity is on track to strengthen in the fourth quarter, followed by continued growth in 2018....

...The Peoria, Illinois-based company said it benefited from mining- and energy-related sales in North America, as well as Chinese demand for construction equipment."

[mrthomas] 14/9/2017 09:18

was trying to buy on the barclays platform but can't do any more a real pain

[butchdogg] 12/9/2017 14:37

Have joined the brotherhood here. looks interesting. have waited for price to come back to the 200DMA have a 5% SL on this looking for a weekly bullflag to play out. target over 500p.

[shanklin] 12/9/2017 08:33

Added a few at £2.795.

[glaws2] 11/9/2017 17:40

Well I am glad they are all OK

[fredfishcake] 11/9/2017 16:11

Yep, got response to email saying similar:

"The Headquarters is fine. All business activities are being conducted from our facility in Houghton Michigan so there will be no disruption to our business.

There is wide spread power outages but as far as we know all our employees are fine. The power outages have impacted the HQ and our homes so it is difficult to get information and respond to all the requests for updates.

Please let everyone know we are all safe with no damage to our HQ and will be able to respond to their requests as soon as power is restored."

[alan_a_walker] 11/9/2017 15:56

According to their Twitter feed all is well @somero_incHurricane Irma Status Update: The Headquarters is fine. All business activities are being... https://t.co/qjFkfT9ocd(https://twitter.com/Somero_Inc/status/907247605083545600?s=03)

[grabster] 11/9/2017 12:16

Indoor concrete floors will not be among the likeliest damage areas, I would have thought. Reconstruction & repair will be mostly in structures above floor level - except in areas where storms have caused subsidence.

[alphabeta4] 11/9/2017 11:59

Another point is that there may be an opportunity to help with the Texas reconstruction work too.

[chashley1806] 11/9/2017 11:49

Hi rivaldo. No worries! At time of writing this post, I see that the share price has found support at 280p. So, I am not unduly worried by today's sell-off.

[fredfishcake] 11/9/2017 11:11

I emailed Somero in Fort Myers and got the following out-of-office:

"Due to the impending Hurricane, the office is closed until Tuesday. All employees will be working remotely as they are able and responses will be answered as quickly as possible. Please note that the storm may create widespread power outages which could further delay communications. "

Good that they planned ahead and hoping all are safe and well.

[rivaldo] 11/9/2017 11:08

Cheers chashley - now I think we know the real reason, especially looking at all the small trades going through.

I agree with you and disagree with PSL, especially given the strength in Europe and potential globally, whilst US non-commercial building remains positive too. This is reflected in SOM's bullish outlook for this H2.

[chashley1806] 11/9/2017 09:09

Hi. Worth saying that I subscribe to the "Penny Share Letter" which recommended selling in its latest issue published over the weekend. They recommended selling on the basis that, whilst a well-managed company, they couldn't see much growth in the share price due to the cyclical nature of the US construction industry.Personally, I disagree with this assessment - I think that, long-term, the company has good prospects - good product/reputation and is seeking to expand its business internationally to mitigate against being too reliant on the US. Essentially therefore, for me, this company is a long-term hold but not one for making a fast-buck.However, with regards to this morning's sell-off, this could be due to a combination of factors: I) as mentioned above, Hurricane Irma; and 2) "Penny Share Letter" investors possibly following that publication's advice?

[loopeyneuro] 11/9/2017 08:59

Thanks for explanations, was a bit confused what was going on there for a moment.

[rivaldo] 11/9/2017 08:50

Cheers Glaws2. From what I can see online there's some localised flooding in Fort Myers, but Irma has been strongly downgraded now it's onshore and the problems don't seem to be as bad as anticipated. I'd think that any problems would be short-lived - whilst the benefits to SOM overall would be much greater.

[alan_a_walker] 11/9/2017 08:42

Presumably the concern is that their hq is in fort Myers and any associated costs/disruptions? Don't see the issue myself either - believe the production bit is in hurricane-free michigan

[glaws2] 11/9/2017 08:39

Riv - they are located in Fort Myers which has taken the full force of Irma - so there may well be 'business continuity" problems.

[rivaldo] 11/9/2017 08:27

Bit of a counter-intuitive fall this morning? I'd have thought all this "weather" in the USA, Mexico, the Caribbean etc would lead to increased business for SOM as the rebuild over the next year takes place.

[rivaldo] 07/9/2017 09:26

Tipped on Motley Fool:



"These small-cap dividend stocks could be millionaire makers
Roland Head
06 September 2017

Some companies are just a pleasure to write about. Not just because their financial results are usually good. But also because you can rely on their management to provide a balanced and clear view of trading and market conditions.

One company which ticks these boxes for me is Somero Enterprises (LSE: SOM). This £156m firm is a market-leader in the field of concrete-levelling equipment. This is widely used in the non-residential construction market. For example, in a modern warehouse, a perfectly flat and horizontal floor is essential.

Somero's selling point is not only the quality of its equipment, but the fact that it provides training and 24/7 global support for all customers. After all, when you've just poured a concrete floor, waiting until tomorrow for help isn't much use.

Promising growth outlook

Turning to the numbers, market conditions appear to be strong. Revenue rose by 7% to $42.4m during the first half, while pre-tax profit was 15% higher at $12m. Net cash remained strong at $18.3m, allowing management to increase the interim dividend by 10%.

Somero's main market is North America, which accounts for around two-thirds of sales. This region was hit by wet weather during H1 and sales fell slightly, from $29.8m to $28.4m. But the group expects a stronger second half and says its customers are reporting project backlogs "well into 2018".

The group's H1 sales outside North America logged an impressive 41% gain, rising from $9.9m to $14m. Sales rose in markets including Europe, Latin America and Asia. This growing geographic diversity suggests to me that profits could be more robust than they have been in the past, if the US market slows.

Management remains confident of hitting full-year expectations. Broker forecasts indicate that earnings per share are expected to rise by 10% this year, putting the stock on a forecast P/E of 13 with an ordinary dividend yield of about 3.1%. In my view, Somero remains worth buying at current levels."

[rivaldo] 06/9/2017 16:04

Bouncing nicely now that the traders are out. Might see a decent re-rating assuming decent markets as the Oxman says.

The confidence shown in the outlook may yet see SOM beating expectations for this year.

[its the oxman] 06/9/2017 15:53

Suspect this will see some steady gains over 300p if we get a few good up days in the main market. Bit of patience required I guess.

[deanowls] 06/9/2017 15:17

The fact two months are already in the bag and I would assume this months deliveries will bring it home for the year, also they are looking at more export markets and the more that sell the more parts and additionals can be sold.

[shanklin] 06/9/2017 08:34

LOL rivaldo,

When I came back to my PC from breakfast to see SOM was down on the day, my first thought was of IQE yesterday.