Somero Enterprise Share Discussion Threads

[mfhmfh] 08/12/2020 10:38

good results from AHT today. hopefully a good read across to SOM.

[eggbaconandbubble] 08/12/2020 07:37

mfhx2 Well spotted. That is a shed load of warehousing! :-)

More seriously, that will almost certainly secure SOM's future in their home market. Now time to start expanding their overseas operations.

[podgyted] 26/11/2020 23:11

Analysts at the moment are really low-balling 2021 earning.

I've stopped taking note in most areas of the stock market because they are just covering their ar*es.

Better to make your own judgement.

[fredfishcake] 26/11/2020 15:31

Mentioned in Shares mag today in their 'great ideas' section.

"Somero credited a strong US market, good
contributions from new products and higher
revenues from its SkyScreed family of products
following an easing of job-site restrictions. Cash
generation has been good thanks to effective
working capital management and customers
paying on time.

Broker FinnCap raised its adjusted pre-tax profit
forecast for 2020 by 11% to $19.6 million and
implied Somero could be more generous with
its dividends thanks to higher cash, upgrading its
total dividend estimate for the year to 21.8 cents.
It also raised its share price target from 255p to
285p based on a fair value price to earnings ratio
of 14 for the 2020 financial year.

SHARES SAYS: 
It’s great to see an improvement in Somero’s trading
and the latest update confirms our original premise
that this is a solid business."

Can't say as I'm wildly impressed by Finncap's estimate!

[its the oxman] 26/11/2020 09:33

Any news, broker update, or just buying because it's cheap.

[mister md] 26/11/2020 08:26

looking strong again here on low volumes

[kenmitch] 23/11/2020 17:29

Strongly agree jon123. I voted up your post but it didn’t register.

[gdjs100] 23/11/2020 16:54

They are restricted as to the proportion of the days volume they can buy. Rather something than nothing.

[fredfishcake] 23/11/2020 16:35

I'd rather they either did a real share back, or didn't. As it is they've bought back trivial volumes - the market cap is £163 million and they're planning on buying back up to $1m. From the latest buy back notice, they've bought back about 0.3% of the shares:
"Highest price paid per Ordinary Share: 237.5 pence
Pursuant to the above transactions, the Company advises that its issued share capital is 56,425,598 Ordinary Shares,
with 206,226 Ordinary Shares held in treasury. Consequently, the total voting rights of the Company are 56,219,372."

I can't help feeling that they're wasting their time with such volumes....

[jon123] 23/11/2020 14:54

share buy backs are just a waste of capital they do naff all for the share price in the long run and shows a lack of imagination from the management, oh yeah they do benefit from increased numbers that go towards their bonus scheme

[arregius] 23/11/2020 07:18

Share buy back from the management was yet a great use of that cash. Remember it will be around 26m even after recent buy backs.

[eggbaconandbubble] 22/11/2020 16:20

I remember reading the Finn Cap report back in September and very much getting the impression if these guys put much more effort into overseas/international sales, business would absolutely take off.

From memory European sales were about 10 or 15% and the ROW even less, despite having a foothold in China.

As a cynic I would say their current approach to export markets reflects a typical parochial approach to overseas markets that many US companies have.

I always accept I may be wrong and I don't know the company in huge detail but often in such circumstances it needs someone to step up to the mark, fly around the world and simply do the biz! Their products are world class and should be world leading!!!

300/400p would be history in a matter of a few years - surely?

[its the oxman] 22/11/2020 15:39

Chart downtrend is broken.

[its the oxman] 22/11/2020 15:38

Good chance this will be over 300p soon, hold on I reckon.

[deanowls] 20/11/2020 13:14

A market that they are disrupting.

Plenty of cash, prudently ran, years of decent growth and a shift towards quality builds.

They also return cash, not keeping what they don’t need or over rewarding boards but ran also for shareholders. A rare thing indeed and to be applauded.

If it were listed in the US what multiple would it be on?

[energeticbacker] 20/11/2020 12:37

House broker forecasts are for earnings of 26.5 cents or c20p, resulting in a current year multiple of 13.75x, which according to Investor's Champion seems about right for a highly cyclical business like this where the underlying market can change very quickly.

[texas_caddy] 19/11/2020 14:27

For me the cyclical argument doesn't stack up in 2020 as it did in 2008/9. Yes, construction and the economy may turn down, but is the demand for warehouses, automation etc, and the need for level floors which these have also going to go down with them?

[qvg] 19/11/2020 12:44

I think they had quite considerable debt in 2009

[mr_spock] 19/11/2020 12:27

They had little cash in the last recession. Think they said they would always hold at least $10m now, to fight off any downturn risk. And spare cash is normally paid out in special divs, so wouldn't be surprised to see one or more next year.

[tiswas] 19/11/2020 12:21

Always wondered why one of the big earth moving/construction equipment manufacturers never thought of picking this up as petty cash to a Hitachi, CAT, Marubeni, and so on.

[its the oxman] 19/11/2020 12:15

Yes undoubtedly cyclical but perhaps this time round it's demonstrated its become less so with its cutting edge machinery and possibly warrants rerating as a cyclical/growth co going forward. Still plenty of mileage back to its old highs as well.

[nchanning] 19/11/2020 11:57

Mr Market on SOM since the financial crisis :'I see the huge margins , incredible returns on capital , large cash pile , huge dividends , expanding product range and cheap valuation but this is a highly cyclical company . In the last recession there were huge losses and the company nearly went bust so I will assign a very lowly multiple despite financial metrics more like a tech company than a building supplies one . 'Yet the company has come through this downturn almost unscathed and still highly profitable . Would not be surprised to see this rerate to closer to 15x earnings in a good year ex. Cash which leaves huge upside on the table

[muffster] 19/11/2020 11:38

Spread is crazy. Deterring buyers