Somero Enterprise Share Discussion Threads

[hpcg] 19/9/2016 10:45

grabster - Paul Scott asked that of management.

Admission notice:

I think it may have been too small for a NASDAQ listing:

One can see that listing it in 2006 was a smart move!

[grabster] 19/9/2016 10:15

Much as I like this share and its nice effect on my portfolio, I remain puzzled as to why a successful US company, a large percentage of whose sales are US ones, does not make its shares directly available to US investors who might surely want to participate. Instead it has this listing on a sub-market abroad, namely AIM.

But that apart, I notice that the rising share price has taken the company's market capitalisation above £100m -- bringing it onto the radar of those fund managers who won't look at anything smaller than that.

[rivaldo] 15/9/2016 15:19

Good to see the price up on healthy volumes - another 300,000 shares traded so far today.

[rivaldo] 14/9/2016 11:10

Nice 50,000 buy just reported at 175p. And new highs.

[rivaldo] 13/9/2016 08:19

RNS yesterday showing Hargreave Hale increasing to above 12% with almost 7m shares:



Good to see shares being top-sliced by other institutional holders being picked up by HH.

[rivaldo] 12/9/2016 07:38

Yep, I posted the Shares Mag tip in post 752.

Great to see the new high and sudden sprint upwards on Friday afternoon. The start of another leg up hopefully.

Lots of job opportunities at SOM suggest a still-expanding company:

[eggbaconandbubble] 09/9/2016 18:41

Yesterday's Shares magazine!

[interceptor2] 09/9/2016 16:37

Looking at all the buying I think these must have been tipped somewhere today.

Appreciate the article penpoint, looking at the smaller regions like Australia, Korea, India and others, I guessed that the orders must be lumpy which would have an effect until they can gain traction. And the article confirms this.

Good to hear Chinese construction activity is picking up, which is an important market for Somero.

[smallcapinvestor1] 09/9/2016 15:53

Seller cleared - going higher. Finally the breakout that has been on the cards for weeks hopefully ?

[eggbaconandbubble] 09/9/2016 15:30

Doesn't look like the Chinese will be using Somero equipment in Somerset!

[smallcapinvestor1] 09/9/2016 15:10

Read lex in todays ft. It talks about how Chinese construction sector is now improving after several weak years. This is fantastic for somero.

[cfro] 09/9/2016 14:45

Yet another day of high volume.

[rivaldo] 09/9/2016 08:50

Cheers penpont, appreciated.

[rivaldo] 09/9/2016 07:30

Tipped in the IC - anyone got the full article please:



"Somero boosted by North American construction

This week's interim results for Somero Enterprises (SOM) feature the sort of numbers investors dream about. As prefaced in a July trading update, almost every key measure of financial health was up in the first half of 2016, as the specialist in laser-guided concrete levelling equipment benefited from a surge in demand for its smaller and medium-sized product line and excellent conditions in its core North American market, which increased its share of total sales from 68 to 75 per cent."

[rivaldo] 08/9/2016 12:11

Shares Mag today remain buyers of SOM in their "Plays Update" section:

"SOMERO ENTERPRISES (SOM:AIM)

OUR POSITIVE CALL on US specialist machinery manufacturer Somero Enterprises (SOM:AIM) continues to pay off as it delivers a better than expected 32% increase in the dividend alongside interim results (6 Sep).

The numbers show a 26% increase in pre-tax profit to $10.4 million with robust
demand from the US (its main market), Europe and China. As a reminder Somero manufactures patented laser-guided equipment which automates the spreading and levelling of concrete for commercial flooring.

As such it can benefit from the requirement for the almost perfectly flat concrete floors required in online retailers’ warehousing facilities.

Sales growth has been driven by new product lines – mid-line and small-line machines and 3D profiler systems which support slope and elevation changes for the likes of service ramps and loading dock areas.

House broker FinnCap comments:
‘The results place the group comfortably on track to achieve current forecasts,
recently upgraded in July, with strong US trading conditions providing good momentum for the second half.’

Based on its forecasts the company trades on an undemanding 2017 price to earnings ratio of 9.2 times.

SHARES SAYS: 
We see no reason to shift from our positive stance. FinnCap has a price target of 205p."

[cfro] 07/9/2016 16:00

Fairly large volume again today.

[rivaldo] 07/9/2016 13:22

AHT reported excellent results this morning - in particular from Sunbelt, of most relevance to SOM.

Importantly, the outlook was "strong" with much confidence for the future.

[rivaldo] 07/9/2016 11:14

SOM tipped as a Buy on T.M.F:



"Is Somero still cheap?

Shares in equipment firm Somero Enterprises have risen by 40% so far this year. The firm’s operating profit rose by 24% to $10.3m during the first half, lifting adjusted earnings by 30% to $0.13 per share.

Somero makes equipment that’s used to produce perfectly flat concrete floors for warehouses and distribution centres. A flat floor is essential for the very high racking that’s used in modern ‘big box’ warehouses.

Somero’s growth is heavily linked to the construction market, principally in the US, where the business is based. Sales in North America rose by 24% to $29.8m during the first half, accounting for 75% of the group’s total sales.

Somero also operates in a number of other territories, but the company’s big hope for long-term growth is China. Flat floors of the kind produced by Somero equipment are relatively new in China, and the group’s market share is low. The potential for expansion into the Chinese market is significant, in my opinion.

Somero has no debt and net cash of $11m. The shares trade on 9 times forecast earnings and offer a well-covered forward dividend yield of about 3.6%.

I believe that Somero remains a buy, as long as investors keep a close eye on the health of the US property market."

[rivaldo] 06/9/2016 18:49

Exactly...as we said earlier in fact :o))

Cheers hastings, nice summary. Here's a direct link - worth reading for the interview with the CEO, particularly the comments about demand booked in for a year ahead in the USA:

[eggbaconandbubble] 06/9/2016 17:13

Thanks hpcg. Very feasible. Good comment.

[hpcg] 06/9/2016 16:56

Good piece from Paul Scott in his small company report about the reality of investing sizable institutional money in small caps and actually applies to any investment which is a large proportion of the issue. One has to sell into liquidity. SOM is not very liquid so one has to unload at any opportunity.

[hastings] 06/9/2016 16:55

Thoughts may be of interest.

hxxp://www.cambridge-news.co.uk/concrete-evidence-that-somero-is-a-good-bet-private-punter/story-29690172-detail/story.html

[eggbaconandbubble] 06/9/2016 16:45

That is TODAY'S news!!!!!

[rivaldo] 06/9/2016 16:25

Eggs, we've already answered your very same point in prior posts 721 and before. There's no need to repeat yourself again!