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The SP should see a discrete (or more) uplift from the announced buyback scheme. The distribution of profits through dividends alone is not helping the share price as much as it should.
Really interesting q&a session at the end there. Particularly around on shoring and near shoring. This a long term growth driver for them for which they couldn’t be better placed. They do good business in all developed economies except China where their business is negligible. By all accounts the next few years will see a lot of concrete being poured in the USA, Europe and Australia that used to be destined for China.
A couple of days ago this was trading at 8x cash flows with a rock solid balance sheet, proven returns to shareholders and the structural growth driver mentioned above.
Somero Enterprises President & CEO, Jack Cooney and CFO, Enzo LiCausi present final results for the twelve months ended 31 December 2023, followed by Q&A.
Watch the video here: https://www.piworld.co.uk/company-videos/somero-enterprises-som-full-year-2023-results-presentation-march-2024/
Or listen to the podcast here: https://piworld.podbean.com/e/somero-enterprises-som-full-year-2023-results-presentation-march-2024/
Why does Somero have no brokerage rating?
The drop is simply due to the forecasts for 2024. They suggested they will do similar profits to this year. So why should the SP rise? Fine if you are happy to hold for divi alone. But if you are waiting for it to rerate with a market recovery, everything in the sector will rerate, so investers would rather sell up and invest in something with potential growth on top. Zero growth by many investors isn't worth their time. Too impatient to wait 6-12 months to see if forecasts get pumped up.
I don't understand the drop today, what was the market expecting for today?
There are not many companies making operating profits of about 10% the market cap.
DVS1 I am as much baffled as you are re Barclays.
Barclays also does not discount withholding tax for US dividend payers (whether you supplied the W8BEN form, Barclays will keep paying on your behalf 30% tax, rather than 15%). So no much point to progress any investigation regarding the matter.
I wonder why Barclays don't trade SOM shares. Halifax have no problems with them
Why don't you ask the Investor Relations representative?
Can someone ask them if they are getting interest off their cash pile yet? If the answer is still no then I will consider my position here. Keeping cash idle just to safeguard their positions is not my idea of good management.
Tuesday, 5 March, 5:00pm
Somero Enterprises Chief Executive Officer Jack Cooney, and Chief Financial Officer Enzo LiCausi will host an online investor presentation of their full year results, followed by Q&A.
Register here: https://bit.ly/SOM_FY23_webinar
Always good to see cash ahead of expectations with their policy of returning excess cash to shareholders.
This should be priced at around the £6 mark
As the concrete industry evolves, Somero innovates. This year, at World of Concrete 2024, we’re proud to announce not one, but TWO new machines. Any guesses on what we’re bringing?
Well it’s perked up now.
Somero is one of the few that have been totally dormant during the recent uplift in the stock markets, surprisingly, not even the rally in the US-listed stocks had any effect on this.
Caterpillar is seeing its order book softening.. wonder if this will be also the case for Somero, although Som operates in a much more niche arena...
Raises a few questions .
Yes. Tight lipped no comment.
Did John Yuncza get the boot?
At this bargain price, must be IN PLAY as a hostile takeover target!!!
Still a lot of selling.
@Badgernator That's wasteful indeed. I hope for a takeover over £5 per share, which is a no brained considering the impressive margins Somero generates. The ideal candidate would be an investment firm rather than another company in the construction machinery industry IMO
I wasn’t impressed by their response to the negligible interest from cash. Keeping a rainy day fund is prudent, not getting interest on it is lax management. Especially as they are Keeping it above $25m. That money should be generating at least $1m
Thanks for sharing Piworld. Somero seem to be in a good position after all, it is in its destiny to be undervalued. Little chances for an acquisition, at least, so far it has never been in talks for acquisitions, and none there are at the horizon.
A good hold for dividends, however the payout has to remain competitive with gov bonds rates to retain its valuation on the market. The management as usual does not make any forecast for the years to come. Encouraging tho, at least for me, knowing they have an impressive customer base of 6000.