| Date | Subject |
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25/1/2021
10:10 | kirkie001: Well, I'm the buy here at 9.30am. Like the idea of a special dividend coming our way on the year end results announcement.
What do we think the realistic growth prospects are here? And how much investment does it require to generate it?
Any decent (publicly available) brokers notes available after the recent trading update?
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21/1/2021
11:37 | sdmbot: Difficult to say:
Supplementary Dividend policy is:
"company’s supplementary dividend policy adopted on March 14, 2018 that states the company intends to distribute 50% of the excess of net cash over the year-end target of US$ 15.0m"
Then today:
"... resulting in net cash as at 31 December 2020 of approximately US$ 35.0m, substantially ahead of previous guidance of US$ 26.0m. As a result of this significantly improved net cash balance, the Board expects to declare a supplemental dividend declared in accordance with the Company's supplementary dividend policy adopted on March 14, 2018"
So 0.5 * (35 - 15) / 56 would be nearly 18c per share
Who knows! Regardless always nice to have a little bonus on the supplementary dividend!
Good work Somero and their Team!
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21/1/2021
09:09 | fredfishcake: Paul Scott likes it - for those with a subscription:
Https://app.stockopedia.com/content/small-cap-value-report-thu-21-jan-2021-crw-getb-sce-idp-air-som-sdg-head-beg-746824?order=createdAt&sort=desc&mode=threaded
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21/1/2021
08:11 | fredfishcake: What I really like about this company is their honesty. Many companies would sit back and bask in the glory of results like this through a pandemic. SOM however are already looking ahead, investing for the future AND TELLING US CLEARLY WHAT THEY'RE DOING. From their update, there's no excuse for investors to expect this level of growth to happen next year due to the increased investment.....but knowing them, it wouldn't surprise me to see great results next year too anyway.
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20/1/2021
14:03 | deadly: SOM celebrating the back of Trump?
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11/1/2021
10:31 | rcturner2: Good share price momentum here. Stockopedia entry is currently:
SOM – Somero Enterprises Inc
330.00p
15.00
+4.76%
Last trade – 09:48
EMS: 2k
Full quote
IndustrialsSpeculativeSmall CapSuper Stock
Market Cap £176.79m
Enterprise Value £155.76m
Revenue £63.08m
Position in Market 842nd / 1,797
Quality
98
Value
71
Momentum
96
StockRank™
99
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08/12/2020
21:21 | its the oxman: Just the way I see it but som dropped sharply from c.350p in June 19 and suspect it could push back up to that level nefore hitting stronger resistance. Only my view and it will probably do something different but I'm hopeful it could now go higher fairly quickly - though lots of things, wider market levels etc can affect this.
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26/11/2020
15:31 | fredfishcake: Mentioned in Shares mag today in their 'great ideas' section.
"Somero credited a strong US market, good
contributions from new products and higher
revenues from its SkyScreed family of products
following an easing of job-site restrictions. Cash
generation has been good thanks to effective
working capital management and customers
paying on time.
Broker FinnCap raised its adjusted pre-tax profit
forecast for 2020 by 11% to $19.6 million and
implied Somero could be more generous with
its dividends thanks to higher cash, upgrading its
total dividend estimate for the year to 21.8 cents.
It also raised its share price target from 255p to
285p based on a fair value price to earnings ratio
of 14 for the 2020 financial year.
SHARES SAYS:
It’s great to see an improvement in Somero’s trading
and the latest update confirms our original premise
that this is a solid business."
Can't say as I'm wildly impressed by Finncap's estimate!
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19/11/2020
07:58 | sev22: Early morning note from House Broker, finnCap.
Positive update – trading ahead of expectations.
The group has released a positive trading update, signalling a strong H2 and performance ahead of expectations. The new guidance points to a 6.7% upgrade to revenues and a 10.5% upgrade to EBITDA. Cash generation has been notably strong, at about $26m, which will drive an increase in supplemental dividends with a dividend yield of 7.1%.
We raise our TP from 255p to 285p, based on a target P/E of 14x, giving decent upside to the current 11.6x.
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09/6/2020
13:52 | pireric: Pretty positive conference call on the medium-term opportunities. Notes below
- No employees have contracted COVID-19 (that they know of)
- Large # of employees working from home outside of those manufacturing
- Pipeline for last few months has been slow because of shutdowns around COVID. In numerous countries it was because construction wasn’t allowed to proceed at all. Pipeline starting to pick up now as construction activity starts its journey to get back to normal
- China market: impacted much earlier. Started to see normal activity ahead of the US but not completely normalised
- Dividend: Management very confident in Somero’s cash generation. Dividend postponement is precautionary like many other businesses have done. “Look forward to settling those [dividend] liabilities in the future when activity normalises” or words very similar to that.
- Fiscal stimulus: Not yet in place in the infrastructure piece. Not direct beneficiary in nature as not screeding highways/runways etc. but get an adjacent benefit
- New Product Development:
o Skyscreed: Very large market opportunity. Have not progressed this during shutdown until last weekend. Lots of interest but still proof of concept and so need to demonstrate the solution onsite. Construction sites want to save labour and labour is very expensive on high rise buildings due to insurance costs – Skyscreed solves this pain point. Very positive about the opportunity.
o SRS-4. Small boomscreed, lightweight. Designed specifically to address transport requirements in Europe which are smaller than in the US. Sold machines starting last month and very positive on the opportunity.
- M&A – Continue to look for opportunities but smaller. Line Dragon was the last one they did
- How have contractor customers weathered the storm?
o Don’t get direct feedback from them but do via leasing agencies who deal with their payments. Have not heard negative things and given the health of contractors through the prior growth period, would be surprised if there are major financial troubles. The crisis has only been a few months as well not a few years.
- Somero have 4000+ customer relationships globally – where the customer has had a commercial transaction with Somero.
- Any supply chain bottlenecks? Not at all
- Warehousing opportunity? Online shopping has been driving a lot of warehouse expansion in prior years and can see the growth in online as driving this and the demand for flat floors. Expect continued growth and expansion here in the future.
- Competition?
o First saw competition all the way back in 1989 from a man in Holland who reverse engineerd a large line boom screed. Have had competitors over the lifetime of the business but Somero still has 99% market share today.
o People who have copied are “machine builders”. They try to reverse engineer and sell a close to Somero proposition but X% cheaper. Misses the point of SOM’s customers. SOM’s customers when they buy a laser screed are getting 80-90% of revenues from 1 piece of equipment. They want detailed tuition, details around engineering and architect requirements, and need high quality support. If concrete placement goes wrong, you have a 1 hour window to fix it before the concrete sets. Somero can offer 24/7 access to a certified technician inside 10 mins. And can provide spare parts out of existing stocks and not on 1-2 week turnaround times others may offer.
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