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Share Name Share Symbol Market Type Share ISIN Share Description
Somero Enterprise Inc. LSE:SOM London Ordinary Share COM STK USD0.001 (DI)
  Price Change % Change Share Price Shares Traded Last Trade
  +0.00p +0.00% 365.00p 10,896 08:00:23
Bid Price Offer Price High Price Low Price Open Price
360.00p 370.00p 365.00p 363.00p 365.00p
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Industrial Engineering 73.71 22.80 29.80 12.2 205.6

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Date Time Title Posts
16/5/201912:46SOMERO - laser guided construction equipment1,872
25/9/201500:12SOMERO - laser guided construction equipment14
10/1/201418:33Somero - Laser-guided construction equipment92
26/2/201307:28somero sales up 47%-
09/1/200912:39Time to buy SOM and tuck away ????15

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Somero Enterprise (SOM) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
15:26:35367.502,77210,187.10O
15:25:19367.505411,988.18O
13:08:31367.502,7219,999.68O
13:07:01367.501,3604,998.00O
11:25:52362.27132478.20O
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Somero Enterprise (SOM) Top Chat Posts

DateSubject
23/5/2019
09:20
Somero Enterprise Daily Update: Somero Enterprise Inc. is listed in the Industrial Engineering sector of the London Stock Exchange with ticker SOM. The last closing price for Somero Enterprise was 365p.
Somero Enterprise Inc. has a 4 week average price of 352.50p and a 12 week average price of 307.50p.
The 1 year high share price is 430p while the 1 year low share price is currently 275p.
There are currently 56,338,342 shares in issue and the average daily traded volume is 114,543 shares. The market capitalisation of Somero Enterprise Inc. is £205,634,948.30.
04/4/2019
15:38
smallcapinvestor1: I also checked with a market maker who also had no idea why but for some reason they noticed the share price drop yesterday and decided not to mark the stock down first thing today.
30/1/2019
11:23
rivaldo: Cheers dave. I'd imagine this product is one of the more expensive lines - with higher margins. SOM have been tipped here: Https://www.aol.co.uk/news/2019/01/20/searching-for-income-ia-d-take-a-look-at-these-small-cap-divid/ "Searching for income? I’d take a look at these small-cap dividend stunners Still cheap Laser-guided product manufacturer Somero Enterprises(LSE: SOM) impressed the market last week with an encouraging update on trading. The company reported strong growth in the second half of 2018 and, as such, expects full-year revenue to be “moderately ahead” of the $90m previously expected by the market. Positively, this will also be higher than the five-year target set by management in 2014. To make things even better, earnings and net cash are also likely to be “moderately” and “more significantly” ahead of market predictions, respectively. Somero reported growth in three of its six regions with operations in North America leading the charge. Efforts to crack China are “yet to gain full traction” but it continues to see “meaningful growth opportunities” in this and other territories. Decent progress has also been made on its push to innovate new products with one launch, the SkyScreed 25, scheduled for later this month. As a result of all this, Somero confirmed that it has no plans to change its dividend policy. It still intends to pay out 50% of adjusted net income for the full year, and a special dividend equating to 50% of excess net cash over the target of $15m. Having done so well over 2018, investors were no doubt also pleased to learn that management was bullish on the £190m-cap’s prospects over 2019, particularly in North America where it currently has a “strong pipeline of construction projects.” Despite a storming double-digit percentage rise to the share price on the day, Somero still looks cheap to buy, on a little more than 10 times earnings, in the new financial year. Taking into account the seriously-high operating margins and returns on capital it has achieved over the years, not to mention the 6.2% yield, and I’m sorely tempted to take a position."
19/12/2018
08:41
eezymunny: SOM revenue in 2007 was $66m, 2008 was $52m, 2009 $24m, 2010 $21m. Underlying profits collapsed from $10.7m to LOSSES in 2009, 2010 and 2011. ie this business fared extremely poorly in the last recession. It's cyclical. Lots of cyclicals have been decimated recently in the US. ie US market sensing possibility of a recession in the reasonably near future (1-2 years). Last recession SOM share price collapsed from c. 160p to c. 11p So people "amazed" at the fall need to consider this in their valuation IMO. The company has kept a very sizeable cash balance (very wise) so that it can weather the next economic storm when it comes, but the possibility of SOM share price halving or worse from here is IMO very real. Of course there may not be a recession ever again :)!!!
09/10/2018
15:19
chashley1806: Yes. I have just had a look at the volume of buys and sells.At time of writing, there are lots of little sells of 500 pounds or less which, in an illiquid share like SOM, can easily force the share price down. Yet, there are a couple of hefty buys at 30,000 pounds plus, which would indicate there is still confidence in SOM.Given the large number of little sells, my guess is that a number of small investors are a bit rattled by the downward pressure on the share price?I also wonder whether bigger-picture issues, such as the fact that the Brexit negotiations are in their final stretch, may keep UK-listed shares depressed for a while.Personally, I am happy to stay put with this share as I am not aware of any inherent adverse material change to SOM's prospects.
29/6/2018
13:09
lammylover: Someone dumped a few 10k blocks of shares yesterday and price dropped hard, causing PI's to panic sell / kick automatic stop losses in. SOM Dropped 9% at one point, then slowly climbed back up. I've been in this share for nearly a year and results have been very good and nice dividend as well. I took the opportunity to add some more to my collection! Hoping we can retest the 425p year high in the next couple of months.. I think for all PIs investing in smaller companies, you have to be aware that the share price can be walked up / down in big steps with vary little volume. This is really noticeable in the Summer months...MMs will move the share price around to create some interest and commission. Check your fundamentals and sit tight, if you believe in the company! Good luck all Rich
08/3/2018
11:22
chashley1806: (Re-sending post with, I hope, better formatting).Hi dannyt90In short, my hope is that we will see significant upside to the share price Here's my thinking based on using Jim Slater's PEG analysis.1) Paul Scott recently reported some updated eps estimates as follows: 2017: eps is 21.8p; 2018: eps is 27.2p. This follows a reported eps in 2016 of 18.5p (at current £/$ exchange rate). 2) So, using Paul Scott's figures, year-on-year eps % growth is an estimated 17% between 2016 & 2017, and 24% between 2017 & 2018.3) As I understand Jim Slater's PEG analysis, a fairly valued company is when the PER equals the eps % growth rate. Therefore, if the eps % growth rate for 2016/17 is 17%, then a fairly-valued PER would be 17.4) At the time of writing, the share price is 355p with my broker stating SOM's PER to be 12, which undervalues the company according to the Jim Slater PEG analysis. So, if my maths is right, fair value using these figures would imply a share price of 502p (ie. if 12/17 = 355p, then 17/17 = (355x17)/12 = 502p).5) That's not a million miles off the last target price issued by SOM's analysts of 450p (as I recall).6) Continuing the analysis for the estimated 2018 eps figures, if my maths is right, fair value would imply a share price of 799p (ie. if 12/27 = 355p, then 27/27 = (355x27)/12 = 799p.So, as I see it, there is potentially lots of upside to the share price if: a) the actual eps reported by SOM's next week is in line with broker estimates; and b) the market recognises that the share price is undervalued and re-rates accordingly.My frustration up till now is that SOM has been meeting analyst expectations over the past couple of years, but the market has not recognised this. Maybe this will change after next week?
08/3/2018
11:18
chashley1806: Hi dannyt90In short, my hope is that we will see significant upside to the share price Here's my thinking based on using Jim Slater's PEG analysis.1) Paul Scott recently reported some updated eps estimates as follows: 2017: eps is 21.8p; 2018: eps is 27.2p. This follows a reported eps in 2016 of 18.5p (at current £/$ exchange rate). 2) So, using Paul Scott's figures, year-on-year eps % growth is an estimated 17% between 2016 & 2017, and 24% between 2017 & 2018.3) As I understand Jim Slater's PEG analysis, a fairly valued company is when the PER equals the eps % growth rate. Therefore, if the eps % growth rate for 2016/17 is 17%, then a fairly-valued PER would be 17.4) At the time of writing, the share price is 355p with my broker stating SOM's PER to be 12, which undervalues the company according to the Jim Slater PEG analysis. So, if my maths is right, fair value using these figures would imply a share price of 502p (ie. if 12/17 = 355p, then 17/17 = (355x17)/12 = 502p).5) That's not a million miles off the last target price issued by SOM's analysts of 450p (as I recall).6) Continuing the analysis for the estimated 2018 eps figures, if my maths is right, fair value would imply a share price of 799p (ie. if 12/27 = 355p, then 27/27 = (355x27)/12 = 799p.So, as I see it, there is potentially lots of upside to the share price if: a) the actual eps reported by SOM's next week is in line with broker estimates; and b) the market recognises that the share price is undervalued and re-rates accordingly.My frustration up till now is that SOM has been meeting analyst expectations over the past couple of years, but the market has not recognised this. Maybe this will change after next week?
20/1/2018
19:04
adamb1978: 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
16/8/2017
19:34
chashley1806: Hi adamB1978True - I don't have a breakdown of revenue by state either, which is why I'm giving Somero the benefit of the doubt.Perhaps it's worthwhile just rehearsing the other issues facing Somero.1) China - I do have sympathy with Somero over their long-standing inability to break into the Chinese market. As I understand it from their presentation, there are two factors at play. First, there is understandable frustration by Somero over a lack of consistent regulation/specification by the Chinese on their construction projects - therefore, it is difficult and expensive for Somero to invest in a product that serves the Chinese market. Secondly, whilst Somero's USP is to increase productivity by laying concrete quickly and highly accurately, there is a genuine commercial barrier for Somero to overcome. This is: is it more cost effectivefor the Chinese to lay concrete the conventional way using China's abundant cheap labour supply at the risk that laying such concrete is not as accurate, as opposed to using Somero's highly accurate but expensive machines?2) I acknowledge that another big plus for Somero is their investment in the wrap-around service they provide, as demonstrated by their "school" in Florida. Somero themselves recognise that, to maintain their "moat", they need to provide the excellent after-sales support that their rivals can not provide because Somero's machines can be reverse-engineered and copied (thus putting their "moat" at peril). So, this is all good stuff!So, given that Somero's fundamentals remain rock solid and taking all these issues together, the future would appear to be bright for Somero, particularly if they crack 1) and exploit 2). The "soft" share price is therefore somewhat surprising unless, in my opinion, there are short-term factors at play - i.e. the NKorea/US stand-off and/or lack of clarity on Trump's infrastructure plans. I also do not want to see any weather-related excuses, either!Regards
01/5/2015
08:19
penpont: Thanks rivaldo. Just picked up on the ST tip from the IC - a bit long but a good overall summary of SOM's potential: It was hard not to be impressed by the fiscal 2014 results from Aim-traded Somero Enterprises (SOM: 140p), a Florida-headquartered company with a market value of £79m that specialises in the design, assembly, and sale of patented, laser-guided equipment that automates the process of spreading and levelling concrete on commercial floors. Having set its stall out last year to double turnover to $90m (£60.8m) by 2018, the company increased revenues by nearly a third to $59.3m in 2014, all of which was organic growth, and with gross margins ticking up a couple of percentage points to 54 per cent, and operating costs rising by only 13 per cent, this resulted in a 91 per cent surge in pre-tax profits to $12.4m and a 123 per cent rise in adjusted EPS to 29¢, or 19.5p at current exchange rates. Moreover, with the benefit of a capital-light business model, a high proportion of cash profits of $15m, up two-thirds in the 12-month period, was converted into operating cash flow, so much so that net funds almost doubled to $6.6m, or the equivalent of 8p a share. In turn, this enabled the board to reward shareholders with a 150 per cent hike in the dividend per share to 5.5¢, or 3.7p. The final dividend of 4¢ (2.7p) went ex-dividend this morning. On this basis, the shares offer a 2.7 per cent historic yield, and are rated on a lowly seven times 2014 post-tax earnings. A solid growth story Furthermore, it's only reasonable to expect this progress to continue in the years ahead. That's because the company has a strong presence in the all-important North American market - sales in the region increased by almost half last year to account for 63 per cent of the total on the back of robust growth in the construction industry. In fact, non-residential cement consumption exceeded the industry's original forecast of 22 per cent growth in 2014 to end up 30 per cent ahead of 2013. This positive industry backdrop, the introduction of new products - the company spends 2 per cent of its annual revenues on product development with the aim of launching one new product a year - Somero's pricing power, and a shortage of skilled labour for its customers all contributed to the jump in North American sales. The company has also been benefiting from an increasing presence in China, where sales rose by 44 per cent to $9.5m to account for 16 per cent of Somero's revenues in 2014. This performance was driven by a greater penetration rate in all regions and the broader awareness of US floor flatness standards being issued by the China Flooring Association. The evolution of the Chinese economy towards more logistics, big box retailing, and e-commerce is playing its part too as these trends are boosting demand for the speed and flatness provided by Somero equipment in laying concrete. In addition, higher wage rates are leading to greater automation in this process which increases the value of Somero's equipment. Expect these themes to continue to help Somero raise its market penetration in a country that clearly offers huge growth potential: cement consumption is around 30 times greater in China than in North America. Chinese customers also now have access to finance options when they purchase Somero's equipment which can only help sales. It's also worth noting that the company sells to concrete contractors for non-residential construction projects in over 92 countries and across every time zone around the globe. Last year, Somero reported growth in seven of the 10 geographic regions it services and that even included Europe where sales rose by a fifth to $3.6m, or 6 per cent of the total. Its Laser Screed® equipment is primarily used in the construction of warehouses, assembly plants, shopping centres, and other commercial construction projects that require extremely flat concrete-slab floors. The client base includes multinational companies such as Costco, Home Depot, B&Q, DaimlerChrysler, the United States Postal Service, and Toys 'R' Us. The company's assembly operations are based in Michigan, US, and sales and services offices are located in Chesterfield, England; Shanghai, China; and New Delhi, India. Cement consumption in India is three times greater than in North America, so to raise awareness within the industry, Somero has stepped up marketing efforts as well as attending trade shows and giving seminars for engineers and architects. Revenue from the Indian market was $600,000 last year, or 1 per cent of the company's total turnover, but this is from a standing start and the market clearly has huge potential. Patented technology It may seem hard to believe, but as the leading manufacturer of laser guided machinery used in horizontal concrete surfaces Somero's patented technology has a near 100 per cent market share. Protected by 56 patents, the company's products achieve a high level of precision in concrete surface flatness at a higher rate of efficiency than conventional methods. It's cost effective too as it results in the highest level of flat-floor precision attainable at less cost to the flooring contractor. The company's vision is for its technology and processes to be used wherever a ready-mix vehicle is discharging concrete for a concrete slab. Maintaining customer services at the highest level, and offering 24/7 aftersales support, are key to protecting this dominant market position, which explains why Somero's workforce increased from 128 to 165 last year to support the anticipated ramp up in sales. Moreover, this solid infrastructure creates an obvious barrier to entry for new competitors. That's because it would be difficult for a new entrant to replicate Somero's product offering and break into its market by using a lower product price to grab market share as it would also need to invest considerable sums in creating a similar service operation. In addition, the company's continual investment in capital spend on new products creates another barrier for new entrants as these new products are specifically designed and built to provide maximum productivity and operational efficiency for clients, so in effect Somero already has first-mover advantage with its patented products. Potential for sustainable growth Clearly, the construction industry is cyclical, but Somero offers the attractive combination of exposure to pent-up demand in the US for residential construction post the recession - the Portland Cement Association predict that it will take another seven years at least before output peaks there - and non-residential cement consumption which has scope to surpass its 2007 peak over the next decade. Interestingly, average selling prices of Somero's products have risen as the US economy recovers in previous cycles. Indeed, in the last economic cycle they increased by 25 per cent on average for smaller line products, and by 42 per cent for larger line products. Sales in North America rose by 46 per cent from $25.5m to $37.2m last year, but there remains substantial upside for further growth in product prices based on previous cycles and for cement consumption based on the above industry forecasts. In fact, analyst Mark Hughes at research firm Broker Profile predicts that Somero's sales from North America could hit $58m by 2018. To put this into some perspective, the company's US sales were $40m at the previous peak in 2007. Mr Hughes is also forecasting that sales in China will double over the next four years to $20m. That's hardly an unrealistic forecast given that the potential market is worth $1.2bn in annual sales, of which Somero has penetration of less than 1 per cent at present. In other words, growth rates will be determined by Somero's ability to penetrate this market rather than the market growing itself. The same is true in India where the company's market penetration rate is only 0.5 per cent, according to Mr Hughes. A fairer valuation Not only are the shares attractively priced based on last year's historic numbers, but there is a realistic chance of decent profit growth coming through in the next few years as Somero's sales pick up on the back of the key drivers I have outlined above. Broker Profile predicts that for fiscal 2015, the company's revenues and pre-tax profits will both rise by around 7 per cent to $63.8m and $13.2m, respectively. Mr Hughes is pencilling in a further 10 per cent rise in revenues to $70m in 2016. These estimates look well underpinned and so do expectations of a further hike in the dividend to 6¢ a share this year, or 4.1p at current exchange rates, implying a near 3 per cent prospective dividend yield. It could be more because analysts predict Somero's net funds will double to $14m by the end of this year, a sum equivalent to 17p a share. Admittedly, a tax credit inflated last year's net earnings and this will revert to a tax charge in 2015. However, using Mr Hughes' adjusted EPS estimate of 19.7¢ for fiscal 2015, or 13.3p at current exchange rates, based on a 30 per cent corporation tax rate, still means that the shares are being priced on only 10 times cash-adjusted earnings estimates. That's far too low for a company that offers potential to beat these conservative looking forecasts if market penetration rates can be expanded in China and India, and the US economy remains in fine fettle. Furthermore, the company has no financial concerns to warrant such a low rating. In fact, its balance sheet is robust with cash balances covering almost all liabilities, so Somero is not reliant on outside creditors to funds its inventories of $8.4m; neither is the business being constrained in extending credit to clients - accounts receivables were $6.6m at the end of 2014. In fact, I feel a cash-adjusted PE ratio of 12.5 for fiscal 2015 is a fairer valuation, implying a year-end price target of 185p. That's 30 per cent above the current share price which for good measure is on the cusp of signalling a major share price break-out if it takes out the 140p all-time high from June last year. A blue-sky rally to my target price of 185p would then be on the cards, and one supported by strong fundamentals. Trading on a bid-offer spread of 137p to 140p, I rate Somero's shares a strong buy.
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