Somero Enterprise Share Discussion Threads

[rcturner2] 05/3/2024 11:21

Although I don't think that a takeover is very likely, I would think that private equity might be interested, given the healthy state of the balance sheet and the longer term potential here.

[alotto] 05/3/2024 10:36

I am skeptical regarding a takeover. There aren't many large companies operating in this niche market. A possibility is a takeover by a large construction equipment company, like Caterpillar.. but would they have appetite for such a smaller company and a niche market?

[eggbaconandbubble] 05/3/2024 08:35

Exactly. Very solid company.
That said and as I’ve repeatedly said, there is huge untapped export potential.
Also an outside chance of a takeover.

[leopoldalcox] 05/3/2024 08:11

No positive surprises in the results or outlook but nothing nasty that I can see either

[eggbaconandbubble] 22/2/2024 12:43

Only needs a couple of write ups in the media......

[gdjs100] 07/2/2024 15:35

Results are on 5th March.

[ali47fish] 07/2/2024 14:44

how come this presentation is without results preceding it

[alotto] 07/2/2024 10:14

Nice I hope for good news in the webinar.

[alotto] 31/1/2024 14:19

grahamburn - Probably better to be elsewhere. I hope India turns out to be a profitable market for Somero. Lots of companies are shifting their operations from China to India. Somero has a sales office in India, but I don't think there is significant revenue from that geography.

[grahamburn] 31/1/2024 12:55

Pleased to see confirmation of divestment of their Chinese business. Always felt Somero was on a hiding to nothing entering that market.

[alotto] 31/1/2024 09:23

Pireric, I would share your concern if Somero did not pay dividends. But lets assume Somero fails to achieve significant, interest discounted growth. As a steady dividend payer, for a shareholder growth will come from the reinvested dividend (whether in Somero or whatever else stock of your choosing). The dividend is quite high here, the company has no debt.

[eggbaconandbubble] 31/1/2024 09:17

Oh dear, there's always an Eeyore in the crowd!

[pireric] 31/1/2024 08:52

Do think it's going to struggle to push on from here though when the forward year forecasts are just for flat growth and declining profits. Don't see why that would drive a re-rating until there is a proof point that they can beat those forecasts. For whatever reason, the market has always been very stubborn with SOM's valuation multiple

Eric

[jerrytuwai] 31/1/2024 08:43

Not all growth is good growth if management thinks Returns On Capital not high enough overseas, but I doubt that is the case, besides.

[alotto] 31/1/2024 08:21

Very underpriced at these levels, should be around the £6 mark

[thorpematt] 31/1/2024 08:20

Looks SOMething of a bargain.

[leopoldalcox] 31/1/2024 07:42

Good update imo with international growth finally picking up

[eggbaconandbubble] 31/1/2024 07:33

I am always of the opinion that with such a good product line, niche market and incredibly naive attitude to overseas markets, SOM must be a prime target for a takeover bid.

[dicktrade] 31/1/2024 07:22

Underpromise then overdeliver

[eggbaconandbubble] 31/1/2024 07:17

Yes, very positive.
What makes me laugh is their constant emphasis on the Australian market when referring to exports. Australia is peanuts when considering the potential in all overseas areas.

[rcturner2] 31/1/2024 07:10

Love that statement.

Excellent update.

[leopoldalcox] 30/1/2024 23:13

Speedy hire is UK only. SOM is mostly US. Very little read across in my view, in terms of weather or construction sector. Update should be coming soon, so we will find out

[alotto] 30/1/2024 16:25

Very minor, I hope not. Speedy Hire has seen a slow down in the construction sector though.