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Nice start - up 1.5p on just a 1k buy at the full 155p offer price. No stock around?
Still on a single-figure P/E though - and with a cash pile which makes it even cheaper on an EV basis. Plus SOM pay a 5.2p dividend, a 3.5% yield.
£60,000 of director buys just announced, including £26,000 from the CFO....the CFO is normally the lowest paid director and doesn't spend hard-earned dosh easily.... Http://www.investegate.co.uk/somero-enterprises--som-/rns/director-pdmr-shareholding/201603310700116197T/ There were more yesterday, but they were a lot smaller. This is sending a bullish message.
I have just discovered Somero and am really impressed. I was just wondering why Somero listed on AIM and not on a US index as it is a US company? Can anyone advise please?
Paul Scott is extremely positive on SOM (and is a holder), looking for 200p. I often disagree with him, but not on this one! http://www.stockopedia.com/content/small-cap-value-report-1-mar-2016-som-trb-jsg-mysl-stm-hyd-122735/ Conclusion: "My opinion - this is one of my favourite companies, and if business continues to boom, then the shares look astonishingly cheap. Before we get too carried away though, this is a highly cyclical company. It makes expensive items of capital equipment for the construction industry, so when the economy goes into recession, demand tends to fall off a cliff. Therefore, there is a valid reason for making a cyclical adjustment in the rating you put on the shares. So I wouldn't be valuing it now on a PER of say 15 or 20, as if it were a growth company. However, a PER of 8.9 times 2015 earnings really does seem low. FinnCap suggest a PER of 11 is more appropriate, which drives their price target of 185p. It depends on where you see the US economy going. Are we at the top of the cycle, about to go into recession? Or is there just a minor blip in an ongoing economic recovery? Who knows?! Another key point for me, is that Somero's markets are very much larger now, than they were a few years ago. This is because so many more warehouses are being automated, and using high racking, so the floor being almost perfectly flat actually matters a lot more now, than it did in the past. Therefore my belief is that the top of the cycle this time, should see Somero making very much more profit, than the top of the last cycle. When you look at its international sales too, really they're only scratching the surface of what should be possible. So much greater penetration of international markets is another key driver for the shares, long-term. The main question I'm asking myself today, is why I'm not holding more Somero shares, when it has already been well trailed that the results today were going to be great, and that the valuation is so cheap? I see upside here to 200p+, providing the US economy doesn't go into a proper recession. EDIT: I note that economic data released in the USA this evening has been considerably stronger than expected, for the construction sector. This is positive for Somero."
I doubled my quantity about 2 days ago, never been more sure that results were going to be good
Som is truly a quality company One of aims finest!
DJ report notes Canaccord confirming that results were ahead of expectations... "LONDON--Somero Enterprises Inc (SOM.LN), an industrial machinery manufacturer, Tuesday recorded a rise in earnings, boosted by cost savings and higher revenue. Pretax profit for the year ended Dec. 31 rose 40% on the year to $17.4 million. Revenue rose 18% to $70.2 million, which it said is ahead of market expectations, led by North America, Europe and the Middle East. North American revenue grew 32% to $49.2 million. "The healthy increase in non-residential construction spending spurred customer demand for replacement machines, fleet additions, and technology upgrades," said the group. The company, which makes laser-guided proprietary technology, said China remains a key target for future revenue growth. It proposed a final dividend of five U.S. cents per share, resulting in a total dividend of 6.9 cents, up 25%. "By every measurement, 2015 was a tremendous year. We grew the business significantly, we expanded our product portfolio with innovative new products, we made progress in developing key new markets," said Chief Executive Jack Cooney. "We see 2016 as an exciting year full of opportunity. We believe we are well positioned to capitalize on expected growth in our core U.S. and other existing markets, extend our global footprint and grow revenues from new products," added Mr. Cooney. At 1106 GMT, shares had risen 9.3% to 147 pence, valuing the company at GBP75 million ($104 million). Canaccord analyst Matthew Walker said the results are ahead of the broker's expectations, noting the outlook in the U.S. is particularly robust."
Apologies - meant to write Canaccord, not Finncap.
Finncap have increased their price target to 190p after today's terrific results.
Somero Enterprises Inc SOM finnCap Corporate 142.50 134.50 185.00 185.00 Retains SP TARGET 185p
SOM Somero....... http://www.investegate.co.uk/somero-enterprises--som-/rns/final-results/201603010700095484Q/ Current Trading and Outlook Healthy trading momentum in the US has carried forward into 2016 from the strong finish to 2015. The momentum is driven by demand for replacement equipment, fleet additions, technology upgrades and new products. The underlying non-residential construction market fundamentals in the US remain strong, evidenced by lengthy project backlogs for our customers that extend well into 2016. This gives us confidence in our growth prospects for 2016. In Europe, we are seeing similar carryover of momentum into 2016 which highlights a continued, steady recovery from the recessionary low point in 2010-2011. The momentum drivers in Europe are similar to the US. In the Middle East, coming off extraordinary growth in 2015, we expect to continue to see significant opportunities in 2016. In Latin America, we expect stable performance in Mexico and Chile and are optimistic for improvement in the other counties in the region outside of Brazil's economic challenges. The Asian markets remain positioned for improvement and will be primarily driven by increased penetration of our products. We expect to see greater need and willingness to use our products and services as acceptance of wide-placement and flatness, levelness standards grows. We will continue to support promotion of the benefits of using wide-placement processes to obtain high quality flat and level floors through our innovative Somero Concrete College initiative in China. In addition, we believe providing customers with Somero's new direct long-term financing options, which was enabled by development of Somero's proprietary machine shut-off capability, will have a positive impact on sales in the region. The Board believes the Company is well-positioned to capitalize on global market opportunities in the coming year and is confident Somero will deliver another year of solid growth.
Around 16.4p EPS compares to consensus forecasts of 14.4p. The 4.93p dividend compares to forecasts of 4.5p. SOM also has $1`2.6m net cash, even after all the investment of 2015 in new products and facilities. The result is even better considering the big decline in China sales - I'd imagine this will turn around this year given the efforts and ideas being implemented. The outlook is extremely confident, and certainly the comments regarding conditions in the main US and European markets, plus growth in the Middle East and elsewhere, bode well for this year.
Finncap have today initiated coverage of SOM with a 185p target: Http://www.stockmarketwire.com/article/5208884/Broker-Forecast-finnCap-issues-a-broker-note-on-Somero-Enterprises-Inc.html Nice.
Good to see a keen pre-open buy of 3k shares today :o)) SOM have been assigned a new patent: Http://www.4-traders.com/SOMERO-ENTERPRISES-INC-4006515/news/Somero-Enterprises-Assigned-Patent-21683082/ "Somero Enterprises : Assigned Patent 01/13/2016 | 07:12am US/Eastern By Targeted News Service ALEXANDRIA, Va., Jan. 13 -- Somero Enterprises, Fort Myers, Florida, has been assigned a patent (9,234,318) developed by two co-inventors for a "roller plow assembly for concrete screeding machine." The co-inventors are Mark A. Pietila, Atlantic Mine, Michigan, and Philip D. Halonen, Calumet, Michigan. The patent application was filed on May 29, 2014 (14/290,027). The full-text of the patent can be found at http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PALL&p=1&u=%2Fnetahtml%2FPTO%2Fsrchnum.htm&r=1&f=G&l=50&s1=92,34,318.PN.&OS=PN/92,34,318&RS=PN/92,34,318"
Lifted from 111 Aim-traded Somero Enterprises (SOM:139p), a Florida-headquartered company that specialises in the design, assembly, and sale of patented, laser-guided concrete levelling equipment for commercial floors, has beaten market expectations handsomely for the 2015 financial year following a strong operational performance in the final quarter. In fact, sales hit at an all-time high in December, which is not traditionally the strongest month of the year, and with the benefit of an improved gross margin performance, the company now expects to report cash profit materially ahead of current market expectations for the 12-month period. Demand in the second half of 2015 proved to be robust across the company's core product range, with North America and Europe contributing significantly to sales growth while performance in China was both healthy and stable. It's worth flagging up that year-end demand for its products in North America was predominantly driven by technology upgrades and fleet additions, highlighting lengthy project backlogs for the company's customers that extend well into 2016. Following the announcemnt, analyst Matthew Walker at Canaccord Genuity now expects 2015 adjusted pre-tax profit will rise from $14m to $18.6m (£12.7m), representing a 11 per cent upgrade, based on a 16 per cent increase in revenues to $69m, to produce adjusted fully diluted EPS of 14.9p. Mr Walker has also raised his dividend per share forecast by 11 per cent to 4.5p, up from 3.4p in 2014. And with management guidance pointing towards "another year of growth", and the company in a robust net cash position estimated to be around 14p a share, I feel that Somero's shares should be trading far higher than on a cash-adjusted PE ratio of 8. A forward dividend yield of 3.2 per cent is supportive too. So, although the shares are trading in line with the level when I initiated coverage ('On solid foundations', 22 Apr 2015), and are just shy of the level at the time of my last update ('Switch on for gains', 9 Sep 2015), I still believe my 185p target price is both warranted and achievable. Trading on a bid-offer spread of 138p to 139p, I continue to rate Somero's shares a buy.
Canaccord have heavily increased their forecasts per Hemscott following the trading update. They now go for: - last year (2015) : 14.9p EPS, 4.5p dividend - this year (2016) : 15.9p EPS, 4.8p dividend Very cheap at 138p given that the US construction market is continuing to thrive.
Found this a testing hold since the middle of last year, but I'm probably going to add more here next week or so prior to the full results. That summary is encouraging and I understand he's a bit of a big hitter so nice to know a shrewd investor is behind them.
Nice 130,000 share buy at 139p this morning seems to have got things going.
Good summary from Paul Scott today: Http ://www.stockopedia.com/content/small-cap-value-report-7-jan-2016-oil-china-som-117169/ Extract: "My opinion - this looks to me like a glaring pricing anomaly. I feel that the market is being excessively pessimistic about the company. True, it's highly cyclical - profits dropped off a cliff in the bad recession of 2008, but the company survived & moved back into profit thereafter. It is now expanding into new markets (China, India, etc), so the next cyclical high in profits should be much larger than the previous one, as it's now a global (as opposed to US) company. Also, there is just more demand for its products, as perfectly flat floors are much more important these days, with more warehouse automation, higher stacking racks, etc. In my view, the market is missing a trick with this company, and has fundamentally under-priced it. To my mind, the shares are worth 200p+, but as usual that's just my personal opinion, and of course I'm talking my own book - as disclosed at the top of this section."
chart again.......http://uk.advfn.com/p.php?pid=legacydaily&epic=L^SOM&type=4&size=2&period=4&ind_type1=1&ind1_1=&ind2_1=&ind_type2=8&ind1_2=&ind2_2=&ind_type3=4&ind1_3=14&ind2_3=&olx_1=3&ma_type1=3&o_1maday1=25&o_2maday1=&o_colour1=1&olx_2=3&ma_type2=3&o_1maday2=50&o_2maday2=&o_colour2=2&olx_3=3&ma_type3=3&o_1maday3=200&o_2maday3=&o_colour3=3&scheme=&delay_indices=DELAYED_INDICES
if Carlsberg did trading updates.....
:o)) http://www.investegate.co.uk/somero-enterprises--som-/rns/trading-update/201601070700060828L/ "materially ahead of current market expectations" "the Board is confident that it will deliver another year of growth and that the high-level of activity in December will continue into 2016" Brilliant stuff. This company is extremely undervalued at this point in the economic cycle and already has a broker price target of 174p - will that now be increased again?
SOM super Trading Statement <a href='http://www.investegate.co.uk/somero-enterprises--som-/rns/trading-update/201601070700060828L/' target='window'>http://www.investegate.co.uk/somero-enterprises--som-/rns/trading-update/201601070700060828L/</a> … Company now expects to report EBITDA materially ahead of current market expectations for the period http://uk.advfn.com/p.php?pid=legacydaily&epic=L^SOM&type=4&size=2&period=4&ind_type1=1&ind1_1=&ind2_1=&ind_type2=8&ind1_2=&ind2_2=&ind_type3=4&ind1_3=14&ind2_3=&olx_1=3&ma_type1=3&o_1maday1=25&o_2maday1=&o_colour1=1&olx_2=3&ma_type2=3&o_1maday2=50&o_2maday2=&o_colour2=2&olx_3=3&ma_type3=3&o_1maday3=200&o_2maday3=&o_colour3=3&scheme=&delay_indices=DELAYED_INDICES"
RNS just out - Artemis showing a great deal of confidence, buying another 753,000 shares since their last holdings RNS and going above 17% with 9.94mm shares: Http://www.investegate.co.uk/somero-enterprises/rns/holding-s--in-company/201509231516389957Z/