Somero Enterprise Share Discussion Threads

[pireric] 09/10/2018 14:56

You can tell a sell off is indiscriminate when even the lower valuation stuff gets thwacked!

Sadly no cash to buy anything really at the moment... need to open up some more personal liquidity as quite a lot of good deals going across the market

[rivaldo] 02/10/2018 09:17

Tipped here:



"Somero Enterprises

Lastly, check out £217m market cap Somero Enterprises (LSE: SOM), which produces laser-guided equipment that assists in the installation of concrete slabs, and has operations in the US, Europe, China, the Middle East and Australia.

Somero shares have had a good run recently and are up more than 20% since I last covered the company in 2017. But with the stock trading on a forward P/E of 13.8 at present, I believe there’s plenty more to come from this exciting smaller company.

Recent interim results certainly looked solid, with revenue rising 6%, cash flow from operations jumping 31% and diluted adjusted earnings per share surging 20%. A 100% increase in the interim dividend was another highlight. It’s also worth noting that Somero has practically no debt and has generated an average return on equity of 35% over the last three years.

Overall, I see a great deal of long-term potential in Somero Enterprises."

[pireric] 29/9/2018 14:47

Missed this during market hours! Get these 'illiquidity falls' every so often. Great value IMO. P/E is one thing but it severely undervalues SOM. The cash generation is best in class.

Will have no choice but to buy more on Monday if it opens near ydays close! :0)

EDIT: Did all this morning (Monday)

[greyingsurfer] 28/9/2018 18:42

Yes, but at around 4.5p the div is quite a bit smaller than the fall over the past 2 days.

Peter

[scooper72] 28/9/2018 17:18

Yes. According to my HL platform it was 27/9/18. Yesterday. I am tempted to pick up a few more. Want to build up the small holding that I have in my ISA and SIPP.

[chashley1806] 28/9/2018 17:07

Didn't SOM go ex-dividend yesterday, and that is now reflected in the fallen SP?If so, I'm not too worried by the drop.

[slopsjon2] 28/9/2018 15:57

This is the third time I've added when it's done this, does seem to be tree shaking

[lammylover] 28/9/2018 15:34

We seem to have run out of buyers for a bit, so MMs are now walking it down hard to find nervous sellers....Hold! Rich

[stepone68] 25/9/2018 16:02

Yes, sorry, I should have said, mine is an ISA. SIPPs are okay. And I think ISAs with (for example) TD Waterhouse or Hargreaves Lansdowne are also okay.

[qvg] 25/9/2018 15:46

i hold in an AJ Bell YouInvest Sipp, and pay no witholding tax.

[greyingsurfer] 25/9/2018 15:44

In a Selftrade ISA the effective tax rate on SOM dividends, with a W8BEN is 15%, they reclaim the first 15%.

Peter

[stepone68] 25/9/2018 15:32

My broker (iWeb) is also unable to reclaim the withholding tax, despite having a W8BEN. They say it's because Somero settles through Crest, and not Intesa. According to iWeb all brokers would be the same.

[shorthornbull] 25/9/2018 14:40

Well done to other holders of this share which has had a great run. Has anyone had any joy in reclaiming the withholding tax on dividends? My broker doesn't support W-8BEN so I now have to file a 1040NR with the IRS. Who is the withholding agent for these shares? Somero IR states it is my broker and my broker disputes this is the case.

[tomps2] 20/9/2018 14:29

H1 results presentation by Howard Hohman, Exec Vice President and John Yuncza, CFO (for period to 30.6.18).



Howard Hohman

Introduction and summary of results – 00:20
Sales by territory – 00:45
Sales by product – 03:55


John Yuncza

Financials – 06:26
Current trading and outlook – 13:47


Howard Hohman

Strategy update – 17:29


Q&A: 21:28

[lammylover] 19/9/2018 16:23

MMs dropping price to fill big orders. PIs giving shares away at 406p, daft! Hold Rich

[pireric] 13/9/2018 21:50

Does look like blue sky ahead ;0)

[lammylover] 12/9/2018 11:12

Breakout, 430p paid. Nice!

[rivaldo] 12/9/2018 10:31

New highs now.

Exactly greyingsurfer - at that age I'm surprised he retains any shares at all :o))

The other way of looking at it is that the market took on almost £200,000 of shares without blinking, suggesting decent demand for the shares out there.

[greyingsurfer] 12/9/2018 08:11

Mind you he is 83, perhaps he thinks it time to spend some?

[pireric] 12/9/2018 07:53

Decently chunky non-exec chairman share sale today. Someone should have let him know the shares are still cheap ;0)

[interceptor2] 11/9/2018 16:01

I looked at AHT after my interest was aroused by Q1 numbers, but couldn't convince myself to invest and also decided I preferred my exposure in SOM. With the majority of revenue from the US just like SOM it backs up the interview and outlook from the Directors of SOM.

[glawsiain] 11/9/2018 15:10

Good point Rivaldo.

Ashtead chief executive stated that "Our business is performing well in supportive end markets. With the benefit of weaker sterling, we expect full year results to be ahead of our expectations"

Hopefully all of that also applies to SOM

[rivaldo] 11/9/2018 12:25

A terrific Q1 results and outlook RNS from AHT today, with Sunbelt performing very well. This may well be seen as a good read-across for SOM on top of SOM's own robust outlook:



"Sunbelt US's revenue growth continues to benefit from cyclical and structural trends"

[rivaldo] 10/9/2018 09:32

Newly tipped in the IC as follows:

"Somero Enterprises (SOM) had already disclosed that four of its six geographies enjoyed growth during the half year to June – up from three geographies 12 months earlier. But the official interim numbers helped flesh out the details – revealing particularly strong contributions from the high-tech, concrete-levelling specialist’s dominant regions: North America and Europe.

Indeed, these grew by 7 per cent to $30.5m (£23.7m) and 24 per cent to $6.7m respectively. North America’s momentum was underpinned by strong sales of boomed screeds and ride-on screeds. Optimism about this market isn’t without foundation: non-residential construction activity was solid, and customers’ project backlogs "extend well into 2019". Meanwhile, Somero sold equipment across 14 European countries, with the UK, Germany and France among the top contributors.
Sales in China fell 7.4 per cent to $2.5m, following a 14 per cent dip here at the full-year stage. But the group has launched sales and marketing initiatives there and employed a China national sales director.

The shares’ decent mark-up on results day was no doubt supported by a doubling in Somero’s dividend. While this might reflect management's confidence in the future strategy, it also stems from the decision to pay out a greater proportion of the full-year dividend at the interim stage, entailing a one-off rebasing.
Broker FinnCap forecasts adjusted pre-tax profits of $27.7m and EPS of 37.7¢ for 2018 ($26.2m and 36.5¢ in 2017).

IC View

The shares are up 48 per cent on our tip (279p, 28 Dec 2017), but still trade on 14 times adjusted forecast earnings, which seems undemanding for the growth and income on offer. Buy."

[lammylover] 10/9/2018 08:42

MMs moving the share price up and down a bit to shake out those who only want 410p for their shares. I reckon this will breakout above 425p over next week or so...Rich