The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
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Overnight the US House of Representatives passed tax reforms which would slash corporate tax rates to 20% (from 35%) - now the Senate must do the same: http://www.iii.co.uk/alliance-news/1510900458656166600-3/us-house-of-representatives-passes-corporate-tax-cuts-pushed-by-trump
Sorry should be Robbie....damn predictive text!
Dobbie's back out again. SOM share price didn't move so he's out with small loss. Then trying to get back in at a lower price - bound to happen as his followers sell, hence 3.5% drop today. I'm not following the herd on this one, will hold and see! Gla SOM holders! Hopeful that Trump tax breaks happen...
I note that sector comparator Ashtead has been rising nicely in anticipation of the promised tax cuts in the USA which could lift earnings by 15% according to this - SOM would benefit just as much if not more: Http://www.thisismoney.co.uk/money/markets/article-5048333/MARKET-REPORT-FTSE-record-high-fall-pound.html "The FTSE also got a lift from equipment rental firm Ashtead Group, which rose 2.2 per cent, or 43p, to 1977p as analysts talked up its prospects in the US if President Trump fulfils his promise to cut corporate taxes. Analysts at Stifel, Investec and Citi Group this week all published �buy� ratings on the firm, estimating US tax changes could boost earnings by more than 15 per cent."
Great news, Robbie Burns back in - details in todays diary. Not sure what price he has paid or target yet, but he's a good stock picker, so thats fine by me! Gla Rich
I have held for 6 months and bought in at around 320 so down on my money. I should have done the call with management 1st then bought in..I don't know this industry and more invested in legal which I,m up 100% over 1 year.. I m thinking of selling out and going more into legal (BUR)..I think it will be 2 years + before we see SOM up a lot..to even 350
Reading through the The Construction Backlog Indicator (CBI) for October based on Company size does show some hope:- On a recent call with Somero , they tell me most of there customers are of the bottom to middle size companies... So less that 30 million turnover... "Backlog at firms with annual revenues between $50 million and $100 million remained longer than 9 months for the fourth straight quarter. This is a group weighted heavily toward commercial construction firms, which have continued to benefit from the construction of a large number of hotel rooms, office buildings and fulfillment centers. ⦁ Backlog among firms with between $30 million and $50 million in annual revenues rose to 10.9 months during the second quarter, the third highest reading on record. As the construction recovery has broadened, more of these contractors have been busy, in part because larger firms are no longer able to accept all available work. ⦁ Backlog for firms with annual revenues of less than $30 million remains remarkably stable at 7.5 months. Backlog for this group has been between 7.2 and 8.1 months for eleven consecutive quarters, a reasonably healthy level" .........................http://www.abc.org/NewsMedia/ConstructionEconomics/ConstructionBacklogIndicator/tabid/272/entryid/9674/abcs-construction-backlog-indicator-returns-to-earth-in-second-quarter.aspx
Finncap today reiterate their 350p target price: Http://investing.thisismoney.co.uk/broker-views/
I note that there's been progress in Trump's tax reforms, which would lower the top corporate tax rate from 35% to 20%. The bill is hoped to be passed by the end of November. This would dramatically cut SOM's tax rate and obviously greatly increase post-tax profits and EPS at a stroke. SOM have released a new product which they're making quite a fuss about: Https://www.somero.com/2017/10/24/press-release-somero-s-22ez-laser-screed-machine-now-available/ "Press Release: Somero� S-22EZ Laser Screed� Machine Now Available Posted October 24, 2017 New features designed to increase profitability and boost productivity Fort Myers, FL � October 24, 2017 � Somero� Enterprises, Inc., a leading manufacturer of technologically advanced concrete placing equipment and associated machinery, is pleased to announce the launch of its new S-22EZ Laser Screed� machine. The most technologically advanced model available on the market today, the S-22EZ includes all of the same cutting-edge features and benefits as the Somero S-22E model while incorporating a variety of new enhancements � inspired by customer and operator feedback � specifically designed to improve floor quality, increase profitability and boost productivity. The major advancement on the S-22EZ is the incorporation of a new EZ Clean Head. The EZ Clean Head includes a rolled profile on the auger support beam and pivots 90 degrees to make cleaning faster and easier than ever before. Additional enhancements on the S-22EZ include a uniform body profile, increased storage with LED lighting, LED work lights, illuminating fuse panel and oil sprayer mount. The S-22EZ also comes equipped with a hose reel when you purchase the optional pressure washer, and head transport stands are now standard. Along with these advancements, the S-22EZ features 360� machine rotation, a 20 ft. (6 m) telescopic boom, customized OASIS laser control system and Quick Grade Set. Integrated diagnostics and full-time, automatic valve calibration make operating the S-22EZ simple and keep the machine operating at optimum levels. The optional Roller Plow enhances performance when placing challenging mixes such as those with integrated fibers, large aggregate or low slump. What further differentiates the S-22EZ is the optional Somero Floor Levelness System�, which is the first technology of its kind designed to monitor Laser Screed machine performance and alert the operator of any issues in real time. Several other machine options are available to meet customer needs, including head size, rotating screed head and extra storage."
Looks like a bounce here is gaining momentum. The awful recent post-hurricane destruction and now fires in California (2,000 structures destroyed to date) have left a lot of infrastructure, warehouses etc in need of rebuilding.
As others have commented, there should be plenty of work coming for SOM as a result of the tragic weather events in the USA and the Caribbean. Also, here's an encouraging report which indicates that non-residential construction in the USA is looking good not only for this coming Q4, but also for 2018. Also interesting that Chinese demand for construction equipment has been picking up: Https://finance.yahoo.com/news/caterpillar-hits-time-high-bullish-174700502.html "Caterpillar’s (NYSE:CAT) stock touched a new all-time high Monday on the heels of a bullish report that forecasted strong demand for construction equipment. Analysts at UBS upgraded Caterpillar to “buy” from “neutral,” citing a positive earnings outlook. UBS also hiked its price target to $140 from $116. The investment bank noted that private non-residential construction activity is on track to strengthen in the fourth quarter, followed by continued growth in 2018.... ...The Peoria, Illinois-based company said it benefited from mining- and energy-related sales in North America, as well as Chinese demand for construction equipment."
today, nice looking chart and bags of potential here imo
Yes, wish I had the readies. Seems to me like Florida is going to be needing a great deal of public concrete soon. As is Houston. As will a whole load of other southern cities in the US of A.
Not sure why this has dropped 5% this morning other than Irma hitting Florida. No negative news on Somero that I can see, so took opportunity to double my holding at 280p. Thanks. Gla Rich
Https://uk.finance.yahoo.com/news/small-cap-dividend-stocks-could-103041381.html "These small-cap dividend stocks could be millionaire makers Roland Head 06 September 2017 Some companies are just a pleasure to write about. Not just because their financial results are usually good. But also because you can rely on their management to provide a balanced and clear view of trading and market conditions. One company which ticks these boxes for me is Somero Enterprises (LSE: SOM). This £156m firm is a market-leader in the field of concrete-levelling equipment. This is widely used in the non-residential construction market. For example, in a modern warehouse, a perfectly flat and horizontal floor is essential. Somero's selling point is not only the quality of its equipment, but the fact that it provides training and 24/7 global support for all customers. After all, when you've just poured a concrete floor, waiting until tomorrow for help isn't much use. Promising growth outlook Turning to the numbers, market conditions appear to be strong. Revenue rose by 7% to $42.4m during the first half, while pre-tax profit was 15% higher at $12m. Net cash remained strong at $18.3m, allowing management to increase the interim dividend by 10%. Somero's main market is North America, which accounts for around two-thirds of sales. This region was hit by wet weather during H1 and sales fell slightly, from $29.8m to $28.4m. But the group expects a stronger second half and says its customers are reporting project backlogs "well into 2018". The group's H1 sales outside North America logged an impressive 41% gain, rising from $9.9m to $14m. Sales rose in markets including Europe, Latin America and Asia. This growing geographic diversity suggests to me that profits could be more robust than they have been in the past, if the US market slows. Management remains confident of hitting full-year expectations. Broker forecasts indicate that earnings per share are expected to rise by 10% this year, putting the stock on a forecast P/E of 13 with an ordinary dividend yield of about 3.1%. In my view, Somero remains worth buying at current levels."
as reiterated this morning.
Particularly like the USD cash pile and the increased dividend. I wonder if this excellent little international business might prove to be a tasty morsel for a much larger operation.
Http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/SOM/13352907.html - solid increase over last year - core US market picking up late in H1 and looking good for H2 - China picking up too - bullish outlook for H2 - new products doing well - $18.3m cash pile - dividend up 10% "Overall, the Board is pleased with the performance of the Company in the first half of 2017 and remains confident in delivering another year of profitable growth for our shareholders in line with current market expectations." Good stuff.
Rivaldo. Thanks, I will have another try.
Due 6th September (ish)
Good to see SOM recommended so highly by Jupiter's fund manager as follows: Http://www.whatinvestment.co.uk/fund-manager-focus-james-zimmerman-2553967/ "Fund manager focus: James Zimmerman 25 Aug 2017 Jupiter smaller companies fund manager James Zimmerman explains how investments in enterprises that generate non-sterling revenues and profits have boosted his fund" "The second stock Zimmerman mentioned is Somero Enterprises. He remarked, ‘Somero Enterprises, which is up 128 per cent in the past 12 months, is a US-focused manufacturer of concrete-levelling machinery and was also among the strongest-performing positions over the past two years. ‘Somero has a 99 per cent market share globally in the leading concrete-laying technology, and after recently meeting with the company in Florida, I was impressed by the strength of its ongoing new product development, as well as the strength and longevity of its customer relationships with contractors that buy its equipment both in the US and the rest of the world.’" Wilawiz, you need to get your ISA provider to send you a W8-BEN form to complete and pass to the relevant tax authorities in the USA. They should then be able to reclaim 15% of the 30% withholding tax you've suffered pretty quickly. I've been doing this for a number of years without a problem. It's THEIR responsibility to sort it out once you tell them this! The recent share price stagnation is imo simply the summer lull, plus I know that Barclays Stockbrokers in moving to a new trading platform this week have told all their clients that the new platform cannot hold SOM as a US-domiciled stock. I'll bet some have decided to sell rather than go through the rigmarole of transferring the stock to another provider, That should be finished now.
I've read previous postings about the 30% withholding tax on dividends. My holding is in an ISA with iWeb and 30% is always deducted. After reading the posts, I did query this with them via their chat line when the previous dividend was paid, but they were adamant that there was nothing that could be done to reduce this to 15%. Was anyone able to get clarification as to whether this could be done? If so, what is the mechanism? I don't totally understand how it works when they talk about Crest being the problem (I think), so if anyone has any success, please could you explain it so I can pass it on to iWeb. Many thanks
Does anybody know when the next trading update for Somero is due? Have been a bit concerned about the recent weakness in the SP, and am wondering whether there's been a material and adverse change directly affecting Somero? Or, is the soft SP due to factors beyond Somero's control such as possible market impatience with Trump and his (lack of) infrastructure plans?
Good to see SOM appearing at the top of this list of highest quality companies on AIM (as well as SCH) - SOM has a Quality Rank of 100 out of 100! http://tinyurl.com/yblmg4lw
I note that United Rentals in the USA, "the world's largest equipment rental provider", today announced stonking results and increased their guidance for this year. They're seen as a bellweather for Ashtead's Sunbelt division and therein for SOM's trading too..... Https://www.ft.com/content/71eeb28e-6d6c-11e7-b9c7-15af748b60d0?mhq5j=e1