Somero Enterprise Share Discussion Threads

[bones] 30/1/2017 16:43

They probably dumped that 632k today as well so that will reduce the remainder further.

[pnetol] 30/1/2017 16:37

But at least we now have a maximum amount that they have left to sell which gives some clarify, especially as it's only Cannacord on the offer.

[ragehammer] 30/1/2017 16:25

Blackrock are the seller. Just below 3% now so we won't know if they continue or not...

[pnetol] 30/1/2017 15:59

Wish I had more funds for another toop up here, as soon as the supply goes we should motor ??

[rivaldo] 30/1/2017 15:11

632,350 shares just bought at the full 255p offer, and every other trade so far today is a Buy.

Has to be a seller out there. Just a question of when he runs out.

[pnetol] 27/1/2017 16:17

Bones that's good to know, used it as an opportunity this afternoon to buy a few more, nothing available below 2.55, is I guess we see how much supply there is, Cannacord are the only MM left on 2.55, all the rest are at 260.GL to all

[rivaldo] 27/1/2017 14:36

Maybe bones - although hopefully that signals the ending of an overhang.

[bones] 27/1/2017 12:34

Rivaldo, appears that Cannacord is feeding out shares at 255p in large amounts. Presume they have a large sell order to fill?

[rivaldo] 27/1/2017 11:34

Wow - a £1.16m Buy at 255p just reported (455,000 shares). Perhaps other trades still to be reported given no price movement yet.

[rivaldo] 27/1/2017 07:20

United Rentals in the USA reported great figures last night which easily beat forecasts, together with a positive outlook, and their shares rose by some 13%.

This should help reinforce sentiment for SOM's own positive outlook.

[interceptor2] 20/1/2017 12:12

SOM does feel like a safe type of stock to hold, there aren't many small cap stocks that offer 70% exposure to the potential Trump effect on infrastructure spending, as well as benefitting from FX rates.

And even after a good run in the last 12 months with the share price up 85%, they still look good value on a PER of 12, PEG at 0.2 and high cash levels which is likely to mean a special dividend.

[rivaldo] 20/1/2017 11:56

The IC declares that SOM are one of the "safer bets on AIM" for 2017:



"Somero Enterprises (SOM) operates in a much more niche market, but its products are no less important. Somero manufactures laser-guided machinery used in horizontal concrete placement, to "advance the productivity, concrete flatness and efficiency of the jobsite". This kind of machinery is crucial in product and distribution warehouses which demand perfectly flat surfaces. Even better - given investors' current penchant for international stocks - Somero earns 70 per cent of its revenue in the US."

"Favourites:

....We're also recommending that investors buy Somero Holdings. Its decent cash pile, solid dividend yield and high US exposure makes it a top pick for 2017."

[ragehammer] 16/1/2017 13:04

Tipped by Simon Thompson again in the IC. Target price upped to 275p

[interceptor2] 16/1/2017 08:16

Noticed that there was strong buying on Friday no doubt partly caused by a positive mention by Robbie Burns to his followers.

Such a good update last week with positives on many fronts and unexpected news about high cash levels and the possibility of a special dividend. And SOM is likely to see major benefits from the anticipated infrastructure spending in the US where they receive 70% of revenue.

Agree with others here that 300p is a realistic target price and could reached rather quickly, because SOM still look priced at a low valuation for a company with such strong growth prospects.

[cfro] 13/1/2017 16:17

Fantastic finish here....

[rivaldo] 13/1/2017 08:16

Thanks chaps, good news. 300p would be nice....

And to make it a hat-trick of tips, it looks like the IC is very positive too:



"Upgrades for Somero Enterprises

Whether or not Donald Trump ultimately proves to be a boon for US infrastructure, trading is already looking very strong for Florida-headquartered concrete levelling equipment specialist Somero Enterprises (SOM)......"

[tanneg] 13/1/2017 06:18

And by The Naked Trader

"I picked up some more Somero (SOM).

Already in a nice profit with this one but what a fantastic trading update on Tuesday.

Results are ahead of expectations and significantly cash has gone well ahead of expectations. It is also on a real roll which could see the price push on up to the 300p area - a really lovely top up and hold for me. Could be a massive winner in 2017."

[someuwin] 12/1/2017 21:57

Tipped in Shares today.

Article concludes with...

"SHARES SAYS:

We tipped this stock a year ago and it has since risen by 68.5%; a superb result. We remain big fans of the company as the stock isn't overly expensive and there is a supportive backdrop amid implications that Trump wants to bring manufacturing back to the US."

[croasdalelfc] 12/1/2017 17:36

And they are costing about $1.5m for the new HQ in the 2nd H

[grahamburn] 11/1/2017 19:28

That deduction is not necessarily correct, bestace. Indeed, it is demonstrably incorrect.

The statement yesterday said:

"In addition, the strong cash generation of the business has built up cash reserves in excess of the Board's targeted net cash level of US$ 10.0m. The Board plans to review its cash position alongside cash requirements for current business needs and future investment during the first half of 2017. The Board will then assess the level of excess cash that may be subject to distribution back to shareholders through a special dividend later in 2017."

The reference to the targeted net cash level of US$10m became company policy in the light of the difficulties which the company faced in the last major recession. During that time, the company almost hit the buffers because it had hardly any cash resources to ride out the downturn in its highly cyclical business. In effect, that figure should be regarded as the company's "rainy day fund" which is tucked away for the next downturn.

The next sentence in the paragraph above indicates that the board also requires additional cash resources for "current business needs" (eg working capital, marketing etc) AND "future investment during the first half of 2017" (ie R & D).

Now, the Board itself doesn't know right now what those two figures might add up to - could be a $2M or $5m or anything between or above. So, come the 2017 half year, there may be $1m spare or $5m spare or any other figure, depending entirely on the Board's assessment of cashflow at the time and future investment requirements.

In short, you cannot simply subtract $10m from (the projected) $18.7m to arrive at the possible size of the special dividend, if any. The wording of the statement implies that there WILL be a special dividend, but it might well be quite a modest one. IMO there's a reasonable possibility of, say, doubling up the projected annual dividend, or something close, but I wouldn't bank on your 15.5c prediction - or even my own guess, for that matter.

[bestace] 11/1/2017 14:23

A cash balance of $18.7m implies a potential special dividend of 15.5c (12.6p) if they retain $10m, if I've done my sums right.

[rivaldo] 11/1/2017 11:24

FYI Finncap have a forecast cash pile now at $18.7m - 12% of the m/cap.

They also go for 26.1c EPS this year. If you strip out the cash SOM are still only on a single-digit ex-cash P/E.

Plus the forecast divi is now 11c, i.e around 9p. Finncap summarise:

"The group has announced a positive year end update, with a stronger finish
to the year delivering sales slightly better than expectations. Operational
gearing results in a 7.5% increase in EPS. Cash generation is significantly
better than expected. As a result, we increase our price target from 205p to
254p, based on a fair value P/E of 12.0x for 2017. With healthy growth set to
carry on, the shares should continue to show robust momentum, with the
potential for a special dividend an additional positive."

[ggbarabajagal] 11/1/2017 09:07

looked at it, didnt buy. My bad

[rivaldo] 11/1/2017 07:25

SOM are positively viewed here FYI:



"Beating expectations

Shares of laser-levelled concrete floor specialist Somero Enterprises (LSE: SOM) rose by 8% this morning after the group advised investors that full-year earnings before interest, tax, depreciation and amortisation (EBITDA) should be “comfortably ahead of current market expectations”.

Cash generation has also been strong. Somero’s year-end net cash balance is expected to be “significantly ahead of market expectations”. As a result, Somero has increased its dividend payout ratio from 30% to 40% of earnings, and is considering whether to pay a special dividend in 2017.

Somero’s speciality is making the equipment required to produce perfectly flat concrete floors for large warehouses. Modern high racking systems require a level floor, and this is a growth business. The group said trading was “solid” in core markets, with Europe, North America and Australia all contributing to growth. Trading in China — a huge potential market — remained “healthy”.

The company’s share price has now risen by an astonishing 2,500% over the last five years. Somero went into the last recession with too much debt, and narrowly avoided disaster. The risk of another cyclical downturn is real, but the group’s management have been much more conservative with financing this time round. Somero has almost no debt, and management plans to maintain a $10m net cash buffer to protect against the costs of a future slowdown.

After today’s gains, I estimate that Somero shares trade on a forecast P/E of about 11, with a prospective yield of about 3.1%. If I was lucky enough to hold the shares, I certainly wouldn’t sell."