Somero Enterprise Share Discussion Threads

[loopeyneuro] 26/10/2017 14:02

Quite a chunky buy there at 250,000.

[rivaldo] 26/10/2017 09:09

I note that there's been progress in Trump's tax reforms, which would lower the top corporate tax rate from 35% to 20%. The bill is hoped to be passed by the end of November. This would dramatically cut SOM's tax rate and obviously greatly increase post-tax profits and EPS at a stroke.

SOM have released a new product which they're making quite a fuss about:



"Press Release: Somero® S-22EZ Laser Screed® Machine Now Available
Posted October 24, 2017

New features designed to increase profitability and boost productivity

Fort Myers, FL – October 24, 2017 – Somero® Enterprises, Inc., a leading manufacturer of technologically advanced concrete placing equipment and associated machinery, is pleased to announce the launch of its new S-22EZ Laser Screed® machine. The most technologically advanced model available on the market today, the S-22EZ includes all of the same cutting-edge features and benefits as the Somero S-22E model while incorporating a variety of new enhancements – inspired by customer and operator feedback – specifically designed to improve floor quality, increase profitability and boost productivity.

The major advancement on the S-22EZ is the incorporation of a new EZ Clean Head. The EZ Clean Head includes a rolled profile on the auger support beam and pivots 90 degrees to make cleaning faster and easier than ever before. Additional enhancements on the S-22EZ include a uniform body profile, increased storage with LED lighting, LED work lights, illuminating fuse panel and oil sprayer mount. The S-22EZ also comes equipped with a hose reel when you purchase the optional pressure washer, and head transport stands are now standard.

Along with these advancements, the S-22EZ features 360° machine rotation, a 20 ft. (6 m) telescopic boom, customized OASIS laser control system and Quick Grade Set. Integrated diagnostics and full-time, automatic valve calibration make operating the S-22EZ simple and keep the machine operating at optimum levels. The optional Roller Plow enhances performance when placing challenging mixes such as those with integrated fibers, large aggregate or low slump.

What further differentiates the S-22EZ is the optional Somero Floor Levelness System®, which is the first technology of its kind designed to monitor Laser Screed machine performance and alert the operator of any issues in real time. Several other machine options are available to meet customer needs, including head size, rotating screed head and extra storage."

[rivaldo] 13/10/2017 11:33

I'll take your word for it gb, though I have my doubts given the pictures now coming out of California. In that case, with all due respect to the countries involved, Mexico and Chile should be prime targets for new sales of SOM equipment given the recent earthquakes (despite today's news North Korea is probably a step too far)....

[grahamburn] 13/10/2017 10:21

A screed floor properly laid (as hopefully all Somero floors are!) would only usually suffer from earthquakes - hurricanes and fires would rarely affect them, unless of course a massive tree fell on it.

[rivaldo] 12/10/2017 21:14

Hi gb. I wasn't really linking the two - I should have made that clearer. I suspect the rise is as you say a rebound based on some value investing, combined primarily with the continuing positive long-term outlook for non-residential construction in the USA as I posted previously.

I know nothing about screeded floors! But surely a floor in a modern warehouse, which must preferably be flat, smooth and even, would be damaged or made uneven/unworkable in the event of either major flooding or destruction by fire?

[grahamburn] 12/10/2017 19:50

Think you're a little optimistic with your conclusion, rivaldo.

Unlikely that screeded floors/foundations will have been affected very much by either hurricanes or fires.

The rise is more likely to be just a gradual climb back to fair value after the slightly negative response to the statements earlier this year indicating slower US growth and lack of expansion in China etc.

[rivaldo] 12/10/2017 10:59

Looks like a bounce here is gaining momentum. The awful recent post-hurricane destruction and now fires in California (2,000 structures destroyed to date) have left a lot of infrastructure, warehouses etc in need of rebuilding.

[tiswas] 04/10/2017 12:27

I am surprised that one of the mega construction equipment manufacturers have not bought this with its impressive margins.

Such companies have a reputation for buying at the top so fingers crossed that the pull back in the share price and the weak sterling price tempts a few out of the woodwork. I could see a price starting with 4 no problem.

[tightfist] 27/9/2017 21:18

Trendwatch magazine/website paper portfolio hit its Stop Loss yesterday. That won't help although I am not sure it has a big following.

[loopeyneuro] 26/9/2017 17:37

Thanks, felt like a selling tip or something, especially with the ex-div so close.

[butchdogg] 26/9/2017 17:28

not sure, but gave up the 200DMA average on the drop, felt a bit manufactured tbh.

bounced of lower channel line. Stop loss is close for me.

[loopeyneuro] 26/9/2017 12:35

Why the drop?

[rivaldo] 19/9/2017 14:51

Encouraging report which indicates that non-residential construction in the USA is looking good not only for this coming Q4, but also for 2018.

Also interesting that Chinese demand for construction equipment has been picking up:



"Caterpillar’s (NYSE:CAT) stock touched a new all-time high Monday on the heels of a bullish report that forecasted strong demand for construction equipment.

Analysts at UBS upgraded Caterpillar to “buy” from “neutral,” citing a positive earnings outlook. UBS also hiked its price target to $140 from $116. The investment bank noted that private non-residential construction activity is on track to strengthen in the fourth quarter, followed by continued growth in 2018....

...The Peoria, Illinois-based company said it benefited from mining- and energy-related sales in North America, as well as Chinese demand for construction equipment."

[mrthomas] 14/9/2017 09:18

was trying to buy on the barclays platform but can't do any more a real pain

[butchdogg] 12/9/2017 14:37

Have joined the brotherhood here. looks interesting. have waited for price to come back to the 200DMA have a 5% SL on this looking for a weekly bullflag to play out. target over 500p.

[shanklin] 12/9/2017 08:33

Added a few at £2.795.

[glaws2] 11/9/2017 17:40

Well I am glad they are all OK

[fredfishcake] 11/9/2017 16:11

Yep, got response to email saying similar:

"The Headquarters is fine. All business activities are being conducted from our facility in Houghton Michigan so there will be no disruption to our business.

There is wide spread power outages but as far as we know all our employees are fine. The power outages have impacted the HQ and our homes so it is difficult to get information and respond to all the requests for updates.

Please let everyone know we are all safe with no damage to our HQ and will be able to respond to their requests as soon as power is restored."

[alan_a_walker] 11/9/2017 15:56

According to their Twitter feed all is well @somero_incHurricane Irma Status Update: The Headquarters is fine. All business activities are being... https://t.co/qjFkfT9ocd(https://twitter.com/Somero_Inc/status/907247605083545600?s=03)

[grabster] 11/9/2017 12:16

Indoor concrete floors will not be among the likeliest damage areas, I would have thought. Reconstruction & repair will be mostly in structures above floor level - except in areas where storms have caused subsidence.

[alphabeta4] 11/9/2017 11:59

Another point is that there may be an opportunity to help with the Texas reconstruction work too.

[chashley1806] 11/9/2017 11:49

Hi rivaldo. No worries! At time of writing this post, I see that the share price has found support at 280p. So, I am not unduly worried by today's sell-off.

[fredfishcake] 11/9/2017 11:11

I emailed Somero in Fort Myers and got the following out-of-office:

"Due to the impending Hurricane, the office is closed until Tuesday. All employees will be working remotely as they are able and responses will be answered as quickly as possible. Please note that the storm may create widespread power outages which could further delay communications. "

Good that they planned ahead and hoping all are safe and well.

[rivaldo] 11/9/2017 11:08

Cheers chashley - now I think we know the real reason, especially looking at all the small trades going through.

I agree with you and disagree with PSL, especially given the strength in Europe and potential globally, whilst US non-commercial building remains positive too. This is reflected in SOM's bullish outlook for this H2.