Somero Enterprise Share Discussion Threads

[alotto] 24/1/2025 08:29

Will Somero benefit from the huge investment in AI in the US?
500 billions dollars pledged by Donald Trump, possibly 200 more from Elon Musk.

[mahammer] 18/12/2024 13:15

alotto.. agreed I added on 24/10 at 263p and would add again if funds were available.

[alotto] 18/12/2024 09:44

Somero trading range has been interesting in the past 2 weeks. I don't see much downside potential from here but I can tell there is pressure that keeps the share price below the 320p mark. A positive trading update in Jan will be crucial to see a recovery... provided the next TU is positive. I am tempted to add but I have run out of available funds for now.

[gdjs100] 08/12/2024 22:12

Much less would be a steal on what may be a cyclical low point in earnings, especially given the high margins and cash generation.

[alotto] 08/12/2024 21:43

£6 is more than I was hoping

[gdjs100] 08/12/2024 21:27

Would be disappointed if it were for any less than 6 quid.

[alotto] 08/12/2024 21:13

What would a sensible takeover offer be?

[rcturner2] 06/12/2024 18:15

Love a takeover rumour.

[nchanning] 06/12/2024 10:28

We know Allianz are out but nobody said Regent were done buying either lads

[alotto] 06/12/2024 08:47

Somero says that there is a healthy backlog of projects with its US customers, my lack of visibility is on whether the customer base in the US is exhausted or there is still scope to have more customers on Somero's client book in the US.
Somero seems to be taking initiatives in the Indian market (I emailed the IR office a few months ago asking about India, I like to think they took my suggestion to explore opportunities in India, although they already had an office in India).
Europe may be a good place for growth with the office in Belgium of recent opening.
I see in datacentres opportunities for non-residential constructions.
Constellation Energy announced plans to restart the Three Mile Island nuclear plant to sell the power to Microsoft, demonstrating the immense power needs of the tech sector as they build data centers to support artificial intelligence. Microsoft may not be the only one building datacentres in the US and around the world.
I am 30% down with Somero (I bought 2/3 years ago for 380p, the journey has been as painful as you can imagine, I hope the reward will be worth the wait.

[nchanning] 06/12/2024 07:26

Well if Trump is really going to put in tariffs and bring back Made in America , there's going to be an awful lot of factories , distribution centres , warehouses etc needing to be built ....

[sphere25] 05/12/2024 19:00

That is certainly notable.

They took CTO out cheap. Well, most would say cheap. It was always on a low rating with low margins and a chequered history.

The problem in the short term here is how many more profit warnings. I think Regent are taking an initial stake here, and then they come in and add more on any possible profit downgrades, or maybe wider market weakness.

Clearly they see value at this level, even if SOM don't downgrade so maybe a win-win for them. I wonder if profit downgrades are the ideal scenario for them. If that stake building is manageable here and at lower levels, then they can cheap ball a bid, if indeed there is no real recovery.

Holders here won't be happy with that. They'll be hoping for limited or no downgrades and a nice re-rating higher. I don't know if Regent will make a move if the price goes screaming north in the future, not that AIM allows too much of a re-rating.

So yeah, some high level thoughts. It looks well worth a nosey now with Regent involved. Not that it is just going to go boom and play out in the near term, but it would be a surprise if that stake doesn't build.

All imo
DYOR

[nchanning] 05/12/2024 17:09

News just in , trade buyer Regent Gas holdings bought the shares , they did a takeover of T Clarke . Certainly a smart buyer in my eyes

[nchanning] 05/12/2024 16:56

Allianz are out - they are not UK small caps specialists , hopefully the shares have passed to better informed holders ....

[alotto] 05/12/2024 07:23

Somero is Proud to Announce to Our India-based Customers - a special offer you will not see in 2025! Call Today to learn more.

For the first time ever in stock in India. Priced to sell today.

[alotto] 30/11/2024 10:11

This is old but I found it informative
hxxps://youtu.be/fN1i-5JR_gc?si=MYVN1h3BAHXMPpr0

[alotto] 12/11/2024 08:47

Many companies headquartered abroad list in London. So do some UK businesses, they must overseas. One example is a stock I own, Assura, they are seeking an additional listing in Johannesburg (as they seem to have keen investors in south Africa).
Not sure about the specific reasons.

[arthur_lame_stocks] 12/11/2024 08:28

Won't dispute your points either of you, but my main concern for Somero is the high margins and whether their machines are better or just more expensive, if they specified in bids you have to imagine there's something good about them though.

I've also always wondered why they chose to list in London.

[alotto] 12/11/2024 06:18

Sounds like a moat

[theaw] 11/11/2024 23:46

Easy to explain— time in the market and customer investment. Somero has made these since the 80s and was the only dog in the show until late 2000’s. And most of these contractors that buy also invest in a plethora of parts that can interchange between generation of models. It’s hard for them to switch ‘brands’ with that investment. Somero has the name and reputation so people buy. Their equipment is also regularly specified as a requirement on jobs by name— meaning you can’t even submit a bid for the job until you prove you own a S-22 or whatever it may call for.

[alotto] 06/11/2024 21:04

Theaw, by what you say I take you're not invested in Somero.
If Ligchine sells the same stuff at half the price, I cant explain how Somero is not out of the business yet.

[theaw] 06/11/2024 20:35

Somero is just plain lying if they claim 99% share. The main competition, 'Ligchine', is US made and privately owned so Somero would have no idea on how many units they sell. However, I am on a first name basis with the founder of the competition and he has been candid with how many units they move annually-- based on those numbers, they move as many boom operated laser screeds annually as Somero and are generally half the price as they're a smaller and very lean company.

[alotto] 05/11/2024 09:21

Tasman, the buyback from Somero is very tepid. There is nothing left but a long wait till the next trading update, possibly in March.

Somero claims there is little to no competition in the field of laser screed machines, however 'shopping around' I was able to find a few manufacturers of laser screed machines. I have no clue about how good and how they differ they are from Somero machines, but they are out there.
The impressive margins that Somero makes however, makes me think the competition is inexistent, as stated by the CEO.

[alotto] 25/10/2024 08:05

If there is a PE takeover I hope it won't go for less than what I paid, £3.80.

[tasman80] 25/10/2024 07:21

I’m in that camp too. Seems at these levels it could well be a sitting duck for a PE or trade takeover. The valuation arbitrage between Som and Cat/Terex is at record wides. Hopefully the board finally wake up and decide to up the share repurchases to minimise chances of an unwanted opportunistic bid approach