Somero Enterprise Share Discussion Threads

[glaws2] 21/3/2019 14:01

I have had it confirmed by Somero's PR agency that Arden are not their corporate broker (it is Finncap) nor are they a client.

[mfhmfh] 21/3/2019 12:06

I'm going with Finncap - 465p target price.

dividend + special dividend to come.

[greyingsurfer] 21/3/2019 11:59

They say they are corporate brokers to SOM, and SOM is a research client.

I'm not quite sure what they mean by this. Somero do not list them as a broker, only finnCap

[watchlist1] 21/3/2019 11:14

dividend on the 4th of April of .252 cents

[xajorkith] 21/3/2019 11:12

Finncap are their corporate brokers as far as I'm aware.

Recent outlook statement takes a different view (see also post 1785):

"The Board believes the Company has numerous meaningful growth opportunities in 2019 across its broad portfolio of markets and products that is supported by positive non-residential construction market conditions and reinforced by customers reporting project backlogs that extend beyond 2019. Based on this positive environment and the momentum of the business, the Board is confident that Somero is poised to deliver another year of profitable growth to shareholders in 2019."

[barnesian] 21/3/2019 09:29

Sounds like they are planning a low priced placing.

[podgyted] 21/3/2019 09:21

Arden & Partners Dated 20/3/19.

"Investment thesis & valuation. At c.12.7x FY19E P/E, (pricing the shares in
line with their historical average and at a minimal 4% discount to the FTSE AllShare), we consider the current rating to be overly-optimistic given our stated
concerns over the impact of an economic slowdown and a possible US
recession. We see c.10x P/E (25% market discount) as fair value for the
shares, exhibiting a more balanced risk-reward profile for investors. Sell."

They say they are corporate brokers to SOM, and SOM is a research client.

Now for a detailed read.

[podgyted] 21/3/2019 09:15

Arden initiates with a sell TP 300p.

Going to read.

[rivaldo] 15/3/2019 07:16

Great to see the new Sky Screed high-rise product winning an industry award for Most Innovative Product in the Concrete Construction Equipment category:

[rivaldo] 14/3/2019 06:39

News from the USA last night - non-residential construction spending rose 4.8% in January year-on-year. And the backlog and positive sentiment appears to be in place until at least 2021:



“Construction of data and fulfillment centers also has created demand for nonresidential construction services. The recent moderation in construction materials price increases has helped support construction starts because more developers and their financiers are concluding that new projects make business sense.

“While there has been some reduction in business and consumer confidence, the nonresidential construction spending cycle remains firmly in place for now,” said Basu. “Despite the recent dip in ABC’s Construction Backlog Indicator, backlogs remain sufficient to support solid nonresidential spending activity through the balance of 2019. And while many economists remain concerned about economic prospects in 2020 and beyond, nonresidential construction’s outlook remains benign at least into 2021.”

[mfhmfh] 13/3/2019 15:55

positive write-up in today's stockopedia:

'This is a high-margin, high ROCE business with a Quality Rank of 99 according to Stocko.'

[mfhmfh] 13/3/2019 09:48

'Expansion Update' section is also interesting reading.

[mfhmfh] 13/3/2019 09:47

I agree India looks interesting, especially with the way the Indian economy is growing.

'2018 was an outstanding year for Somero and we are looking to build on that momentum as we enter 2019. Our business has positive momentum, supported by favorable market conditions across our geographic footprint and the broad range of opportunities in new and existing markets.'

'We are well prepared to enter the next phase of growth for our Company, to work to execute our strategy, and most importantly to deliver another year of progress for our shareholders.'

[scottishfield] 13/3/2019 08:42

A rather muted reaction to excellent results - added.

[greyingsurfer] 13/3/2019 08:12

Longshanks - the 2018 dividend quoted is payable on 26 Apr 2019 - it's in the para headed "Dividends"

[xajorkith] 13/3/2019 08:09

In the Chairman’s statement longshanks:

“the Board has approved a final 2018 ordinary dividend of 13.5 US cents per share and a supplemental dividend of 11.7 US cents per share, both payable on April 26, 2019 to shareholders on the register at April 5, 2019.”

Excellent results yet again :)

[rivaldo] 13/3/2019 07:53

Finncap have a 465p target, so plenty of upside.

The total 30.7c divi (incl. the supplemental) is far ahead of Finncap's expectations of 24c.

[longshanks] 13/3/2019 07:46

Doesn't look to me like they have stated any new dividend yet: is it my imagination or have they just reported what was done last year.Either way 50% of net cash above $15m means yet another bumper special dividend is due.The overall growth of the business is very strong. A great investment all round.

[podgyted] 13/3/2019 07:44

This just keeps on giving !!!

FinnCap:-

"Valuation. The shares have bounced from market-induced Q4 weakness, buoyed by
the positive January update. Nevertheless, the 2020E P/E of 11.4x is undemanding.
Forecasts remain very conservative, new products offer mid-term upside and the
group’s strong cash flow, ROCE track record and market position deserve a premium
rating. The total dividend yield now stands at 6.6%, over 2.4x its peer group. We
maintain our 465p PT, based on a 2020 P/E of 14.3x, giving a total yield of 5.3%."

[devonlad] 13/3/2019 07:44

Excelenete!

[capercaillie] 13/3/2019 07:21

Great numbers.

[rivaldo] 13/3/2019 07:21

Terrific results once again from SOM. Revenues and EBITDA are above even the recently increased forecasts from Finncap.

And the total 30.7c dividend is way above the forecast.

SOM still have $28m net cash in the bank to play with!

The outlook is extremely confident for 2019, and we have the introduction of the SkyScreed and Line Dragon's new products to look forward to.

It would be perfection if China finally came to the table, but I'm sure that will happen. In the meantime it seems that India is starting to pay off nicely, in which case China can remain on the backburner...

Great stuff.

[shanklin] 12/3/2019 08:42

LOL, a notice of results RNS would have been more conventional.

[glaws2] 12/3/2019 06:35

Thanks hawaly

[hawaly] 11/3/2019 18:01

I emailed the company regarding results:

"The Company will be publishing its results on Wednesday 13th March."

GLA 😎