Somero Enterprise Share Discussion Threads

[eggbaconandbubble] 26/1/2021 07:37

Agreed. There is huge export potential apart from China. however I suspect, like many US manufacturers they have a somewhat parochial view of overseas business. Pity - for now.

[podgyted] 25/1/2021 23:17

Like most countries the US has experienced a surge in on-line vs bricks and mortar retailing - this means more warehouses and more demand for their machines. Do wish they'd just give up on China tho.

[rcturner2] 25/1/2021 12:58

Also don't forget that they are heavily concentrated in the USA which is going to enjoy some pretty hefty economic stimulus over the next 4 years during Biden's presidency. All of which should be very positive for a company like Somero.

[arregius] 25/1/2021 12:01

I am sitting of my assets. Look that management is conservative and that they NOW see growth and therefore invested. I think we can break all time highs. Patience. Awesome company

[fredfishcake] 25/1/2021 11:41

I freely admit to being rubbish at deciding when to sell, but as I have a substantial holding here I started thinking about top-slicing. However, looking at Stockopedia, we currently have a P/E of 14. The highest P/E we had was in 2016, when we had a P/E of 18 - on current earnings that would take us over £5. As I've learned to trust the management and they've managed to navigate their way successfully through some tricky times, I think I'll go back to sleep until we hit £5 and then rethink. No guarantees there of course, we may never hit £5-but currently we're a bit of a cash cow, so I'm no longer in a hurry to sell.

[doobz] 25/1/2021 11:25

Expecting some profit taking between 400 and all time highs, anyone got realistic targets above that?

[kirkie001] 25/1/2021 10:10

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?

[its the oxman] 25/1/2021 09:39

Be nice to break 400p, very close now.

[leopoldalcox] 21/1/2021 23:11

Last year the final divi was 14c, so total end of year payout (final plus special) could be around 32c.There are a lot of assumptions in there, so not a prediction

[leopoldalcox] 21/1/2021 23:09

I think he's taking the 35m USD cash.The policy is to pay 50% of cash above 15m. So 50% of 20m = 10m / number of shares = special divi.Number of shares 56m. 10m usd/56m =18c

[arregius] 21/1/2021 17:19

Why divide with 56? How many shares outstanding? And need to change into pounds? I thought we will go higher. Looooong

[its the oxman] 21/1/2021 15:49

Can't be many people who want to flog their shares for 360p after today's update.

[sdmbot] 21/1/2021 11:37

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!

[arregius] 21/1/2021 10:15

Anyone know how much the div yield will be?

[rcturner2] 21/1/2021 10:04

Paul Scott's summary is: My opinion - a terrific company. See Finncap’s update note this morning, either on its own research portal, and Research Tree. FY 12/2020 forecast is now 33.2c, at £1 = $1.37 that becomes 24.2p PER is 15.7, not expensive for a company of this quality, particularly as it is sitting on surplus cash too. Note the StockRank is jammed on maximum - don't think I've ever seen one like that before!

[mfhmfh] 21/1/2021 09:18

I'm happy management are under promising for 2021. I wouldn't be surprised if they over deliver as they have done previously. Vaccines to flood the market soon - should lead to an increase in non-residential construction in the US and non-US territories: https://www.cnbc.com/2021/01/20/covid-19-vaccines-will-end-pandemic-in-us-by-early-summer-federated.html All IMHO.

[fredfishcake] 21/1/2021 09:09

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

[fredfishcake] 21/1/2021 08:56

Wow - that's quite an adjustment!

[podgyted] 21/1/2021 08:36

Target price raised to 435p from 285p at finnCap.

[its the oxman] 21/1/2021 08:35

Nice update , should certainly test and hopefully break 400p level now in weeks ahead.

[fredfishcake] 21/1/2021 08:11

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.

[pugugly] 21/1/2021 07:58

risk_ You are right but the City is very often too short term! Unlike many long term PI holders.

[riskvsreward] 21/1/2021 07:48

Don't see that as a sting in the tail. While many businesses are on survive mode this co. is already investing for growth, which should be taken as a very positive sign.

[arregius] 21/1/2021 07:48

Lets see if we hit 4£