Somero Enterprise Share Discussion Threads

[rivaldo] 19/2/2018 23:00

I'm assuming the 75,000 share trade at 360p cleared an overhang today. New highs tomorrow hopefully.

[rivaldo] 19/2/2018 10:46

Looking good again here.

Results will be on 14th March. With a booming US economy, huge potential in China and India and this outlook from January, there's every reason to believe SOM's upswing will continue for some time yet:

"Outlook

Following record results in 2017, the Board is confident in the Company's ability to deliver another year of profitable growth in 2018 as the underlying market conditions in our core markets remain positive and as the Board continues to see significant growth opportunities in our other territories. The Board's confidence is further supported by recently enacted pro-growth US corporate tax law changes which are expected to stimulate increased economic activity in the Company's largest market."

[glaws2] 16/2/2018 08:02

Been some heavy volume over the last few days.

[macmuck] 13/2/2018 19:23

Bought a small amount today. First since my initial in 2014. I spoke to Rick Borst then (he is on linkedin) and he was so bullish about the company, I had to buy! Was my first purchase and was over-cautious!

[rivaldo] 09/2/2018 14:45

Looks like some sizeable buyers out there - up today on more very healthy volumes, and has held up extremely well in the current markets.

[cfro] 29/1/2018 17:35

I'ts just worth mentioning in light of the big rise in the share price in recent weeks that the forward PE is still low.

Although i admit to not having seen any updated broker estimates i suspect the PER is possibly only around 14.

[rivaldo] 29/1/2018 16:21

Very healthy volumes - 500,000 shares traded today, and nice and solid.

Hopefully this is a platform for another upwards move soon.

[nfs] 23/1/2018 10:47

I note global growth looking good for 2018 2019 per the IMF, and JIm O'Neil saying the same thing.Bodes well for Somero

[rivaldo] 22/1/2018 07:42

Tipped in Shares Magazine - notes Finncap's increased 450p target and concludes "keep buying":

[glaws2] 21/1/2018 13:53

Adan - an understandable strategy, but given SOM's metrics (PE 13 for 27% EPS growth; ROCE ~50% and OM of 27%) I'd been interested to know what equities you are retaining.

[smallcapinvestor1] 21/1/2018 10:22

The way to make proper money in equities is to find a great company, buy in and never sell.

[adamb1978] 20/1/2018 19:04

Hello

Some good news for all SOM holders - I sold out last week, which probably means that its got a lot further to run! Reasons for selling were:

- SOM are trading at their peak multiple, meaning that further multiple appreciation is less likely and share price growth needs to be driven by earnings
- non-residential construction is forecast to grow by 3%-5% this year in the US, so SOM need to outgrow the market or benefit from operating leverage to get something exciting (say close to 10%) at the bottom line
- from a personal perspective, I'm taking a more cautious approach through this year given that I believe we'll have a correction some time in 2018 or 2019 - so many indicators are flashing red and we've recently seen a capitulation of the bears, which often signals a market top (be fearful when others are gready etc). So am banking some profits (I bought into SOM at 143p) and will be gradually shifting some equities allocation into shortish dated (2-3 years) corporate bonds over this year and next.

SOM is a great company, has a moat and is well managed; they don't rely on spin, just quietly go about delivering. I'd be very happy to buy in again, either after a meaningful pull-back, or after a market correction. Indeed, after the next recession, this is one which I'll be keeping an eye on given that the sector its in might mean it gets hammered and therefore offer great returns in the next upturn. I just dont see too much upside from here. Time will tell whether I'm right or wrong.
All the best for holders,

Adam

[rivaldo] 16/1/2018 12:19

SOM have been featured in a Tip Update in the IC - hopefully this will also be in Friday's print edition:



"Tip Updates yesterday

Somero upgrades expectations

The concrete levelling specialist will beat expectations for 2017 revenues and cash profits....."

[3500sr] 14/1/2018 15:03

It is also worth remembering that the rise immediately prior to the update only took us back to where the share price was in April and May 2017

[rivaldo] 12/1/2018 11:40

Stepone68, the recent rise was due primarily to the passing of Trump's tax cuts and their beneficial effect on SOM - though optimism about the trading update was also natural given prior bullish outlooks.

I hadn't realised Paul Scott was a SOM holder - he's commented as follows this morning:

"Positive update from Somero Enterprises Inc (LON:SOM) today (disclosure: I have a long position)- a very nice, niche business, which makes the laser-guided machines used to lay perfectly flat concrete floors (very important for warehouses). Being based in USA, it should hopefully benefit from tax reductions.

Paul.

EDIT: I've just seen a broker note, upgrading 2017 EPS forecast by 7.7% to 29.5c, and 2018 by 7.0% to 36.8c. That translates into 21.8p and 27.2p, giving a 2017 PER (based on share price now of 360p) of 16.5 times, and a 2018 PER of 13.2.

Conclusion - it still looks cheap, based on 2018 forecasts. Also note that it has a strong balance sheet, and reports net cash today of $18.5m. Positive outlook comments too. Very nice."

[thelongandtheshortandthetall] 12/1/2018 09:55

Might get SOMe good press over the weekend.
:)

[its the oxman] 12/1/2018 09:20

Nice update and every chance of testing 400p now.

[alphabeta4] 12/1/2018 08:57

From Finncap morning note 'accordingly we upgrade our eps forecasts by 7.7% and 7% respectively'. Gather referring to their 2017 and 2018 numbers.

[rivaldo] 12/1/2018 08:40

Finncap have raised their target price to 450p (from 420p), so still plenty of upside:

[interceptor2] 12/1/2018 08:28

A lovely trading update, particularly pleased to hear that the US and Europe are continuing to perform strongly, but there were plenty of other positives in this statement.

Bodes well for the new financial year.

[adamb1978] 12/1/2018 08:00

As always with these guys, performance ahead of expectations and their market communication is clear and concise and they've even bettered their usual communication by saying what they mean by 'market expectations'.

EPS probably around the 25p market for the year just finished so a PE of say 14x and a turn or so lower excl cash. Given the increased cash buffer, I doubt we'll get another special divi til the end of this year however thats not really a problem

All very good

[cfro] 12/1/2018 07:47

All in all a very good statement.

[soundbuy] 12/1/2018 07:36

That'll do........... :)

[gersemi] 12/1/2018 07:33

Great company

[rivaldo] 12/1/2018 07:27

Beautiful stuff...again.

EBITDA to be "comfortably ahead" of expectations.

And "net cash at 31 December 2017 is expected to be not less than $18.5m, well ahead of market expectations of $16.5m".

America and Europe are storming ahead - and encouragingly India and China are both beginning to motor.

And looking ahead, we can expect another special dividend, plus:



"Following record results in 2017, the Board is confident in the Company's ability to deliver another year of profitable growth in 2018 as the underlying market conditions in our core markets remain positive and as the Board continues to see significant growth opportunities in our other territories. The Board's confidence is further supported by recently enacted pro-growth US corporate tax law changes which are expected to stimulate increased economic activity in the Company's largest market."