Somero Enterprise Share Discussion Threads

[justiceforthemany] 02/10/2019 17:33

1,144,238 share buy this afternoon @ 190p [£2.2M] followed by 377.500 [£718,000].

[carcosa] 01/10/2019 15:39

WASHINGTON-Spending on construction across the U.S. rose in August from the prior month, the Commerce Department said Tuesday. Here are key highlights from the report:

--Construction spending increased 0.1% to a seasonally adjusted annual rate of $1.287 trillion in August. Economists surveyed by The Wall Street Journal had expected a 0.4% increase.

--Private construction outlays were unchanged in August from July and were 4% lower than a year earlier. Spending on private building of single-family houses, the largest single category of construction, climbed 1.4% from the previous month but was still down 6.6% from August 2018.

--Government outlays on construction rose 0.4% in August from July.

--Total construction spending in July was revised to 0% from an initial estimate of a 0.1% increase.

--The data weren't adjusted for inflation.

The Commerce Department report on construction spending can be found at hxxp://www.census.gov/construction/c30/c30index.html.

[justiceforthemany] 19/9/2019 10:48

Excellent detailed 44 minute video.
Re-rating of shares to 300p+ by year end?

May receive a takeover offer given the excellent balance sheet and net cash.

[justiceforthemany] 17/9/2019 19:20

5.75c Ex-Dividend next week.
Few decent sized six figure buys today.

P/E 7; Dividend 8.5%

[intelinvestor] 15/9/2019 19:07

Smallcap
Its towards the end of the economic cycle so it more risky now in my view, thats the reason why i have held off. I can see it getting worse before getting better so there will be a better entry point along the way. might have its ups and downs over next year or two but i beleive somethings brewing and this stock will get hammered. i think at the moment safer and better places out there for your monday. only my opinion

like the company as a whole but not convinced just yet

[justiceforthemany] 10/9/2019 15:27

Be aware that some buys are being marked as sells and vice versa.

Quite a few buys today marked down as sells.

I hear Somero are doing a presentation in London on Thursday.

[smallcapinvestor1] 06/9/2019 18:58

"If same as last recession"!!!!Highly unlikely eezy, you expecting another global financial crisis??

[justiceforthemany] 06/9/2019 18:10

EezyMunny - if you properly assess the accounts from 2008/9 prior to the placing you will note how the company was paying out millions just in interest to cover the debt payments and were making minimal profit. There was only $1M held in cash compared to >$15M now. Cash at H1 exceeds total debt of $13M. Revenue and profits are considerably higher while net income is 4x what it was back then.

We only have a small position here but a drop of 55% from 430p the 52 week high seems unjustified. USA is not going into recession any time soon and highly unlikely to before the 2020 election.

[eezymunny] 06/9/2019 12:22

Thick as thieves, some of the posters here IMO.

As cyclical as it comes SOM IMVHO. If same as last recession, will be losing money soon and may bottom below a quid. Time will tell but jumping in for a bounce, whilst might be a profitable trade, is very risky IMVHO.

[simba_] 06/9/2019 11:28

Watching with interest. I've not yet learned how to short. I think it's a good business thats just starting to feel the effects of the cycle. I expect things will get worse and share price will fall further..Not sure yet exactly where I'd be a buyer. Under £1.50 I'd start having a serious look. Assuming it plays out the way I expect.

[justiceforthemany] 06/9/2019 11:11

Shorting this then Simba? What is your position here if any?

[justiceforthemany] 06/9/2019 10:10

Some monster sells today. RSI is now extremely low. Think you will do well if you get in around 200p.

[simba_] 06/9/2019 10:10

None of those economies grew at 1% in Q2. All were 0.5% with only Netherlands beating forecast GDP which was 0.3%. .Maybe you could call this good when comparing with some larger economies that are contracting but overall its not good. Most were seeing over 1% growth previously.

[scooper72] 06/9/2019 09:13

Wish I hadn't averaged down yesterday- was obviously a bit premature

[justiceforthemany] 05/9/2019 15:06

Spain, Portugal, Netherlands, Finland all grew between 0.5% and 1% in Q2.

[simba_] 05/9/2019 14:13

Which parts of Europe are seeing good GDP growth?.

[justiceforthemany] 05/9/2019 09:54

Europe accounts for only ~10% of all sales. Out of this Germany probably 1-2% only. Some parts of Europe are actually seeing good GDP figures.
>70% of revenue is from North America.
China and ROW were flat while Latin America showed growth in revenue.

A few director buys and with a decent dividend coming up in a couple of weeks could see this back to 250p+

[source] 05/9/2019 09:20

German factory orders -2.7%German construction PMI 46.3- weather changes are not the only factor needed to improve SOM outlook. It's clearly a cyclical player & it's markets are still deteriorating. Regards,

[shanklin] 05/9/2019 07:20

July marginally drier than average. No info yet for August

[justiceforthemany] 04/9/2019 17:47

H2 is expected to be better than H1.

Even if we adopt a negative outlook and assume H2 mirrors H1 and the record rainfall returns (unlikely) we are looking at PBT of $21M and EPS of 28c.
This equates to EPS ~ 23p at current exchange rates and a current P/E of 9.6 which is low.

Company is projecting FY numbers similar to 2017 which gives PBT of $25M, EPS 31c and a P/E of just 8.7

As for the dividend even if no 'special' is paid this year the yield is now 7.5%. With a supplement we are looking at a yield >10%.

The balance sheet is strong and the equity ratio of 4.6 is excellent. Intangibles/goodwill are minimal also.
Cash alone of $15.1M exceeds the total liabilities of $13.6M.

M&A is also probable with the shares trading at levels not seen for 3 years.