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Started: piworld, 22 Mar 2024 12:13
Last post: Alessandro, 3 Jun 2024 12:43
If you Google the word 'Unloved' the first result will be Somero's website I am sure.
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
Started: piworld, 7 Feb 2024 09:01
Last post: Alessandro, 13 Feb 2024 14:00
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
Started: Alessandro, 31 Jan 2024 08:50
Last post: Hardboy, 31 Jan 2024 09:28
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
Started: Alessandro, 31 Oct 2023 15:03
Last post: Alessandro, 27 Dec 2023 11:24
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...
Started: Alessandro, 2 Oct 2023 11:16
Last post: WorldWidePleb, 12 Oct 2023 06:57
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!!!
Started: piworld, 11 Sep 2023 09:19
Last post: WorldWidePleb, 26 Sep 2023 10:07
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.
Somero CEO, Jack Cooney and CFO, Enzo Licausi present Interim Results for the six months ended June 30, 2023 followed by Q&A.
Watch the video here: https://www.piworld.co.uk/company-videos/somero-som-2023-interim-results-presentation-september-23/
Listen to the podcast here: https://piworld.podbean.com/e/somero-enterprises-som-2023-interim-results-presentation-september-23/
Based on info in the public domain for the 6 months, average cash balances are in the $20m to $30M range, available short term interest rates in the 3%/4% range, implying interest income of at least $300k rather than the published $37k.
Schwee can you please elaborate?
Not sure why finance income is so low given the cash balances.
It seems the market is judging these on the historic numbers rather than the projections. It's not been a good half, but I am happy to hold given the forward looking statements. And very pleased with the growth in the EU & Australia. If that can continue & the hold ups in the US market can be cleared, the second half looks very promising.
Started: piworld, 31 Jul 2023 10:49
Last post: piworld, 31 Jul 2023 10:49
Wednesday, 6 September, 3:00pm
An interim results webinar will be given by Chief Executive Officer Jack Cooney, President John Yuncza and Chief Financial Officer Vincenzo LiCausi. (Following the publication of results on 31st August).
Register here: https://bit.ly/SOM_H1_results_webinar
Started: Hardboy, 20 Jun 2023 07:50
Last post: Alessandro, 24 Jul 2023 10:17
Promising also for 2024 in my view. I will be surprised if we don't hit £5 again by the end of the year or in 2024.promising also for 2024 in my view. I will be surprised if we don't hit £5 again by the end of the year or in 2024.
Thank you
Interim ex div date should be around 21st/ 22nd Sept. Final ex divi date is April 2024
When’s the next Divi? (If one at all!)
I don't know re the SP today but it's a good entry point for me. I think the construction market worries are overplayed and Somero have forewarned. The only niggle would be that they haven't forewarned enough (ie a 2nd profit warning pending) but that's almost factored into today's SP. I'm holding LT.
Started: Rich62, 14 Mar 2023 08:19
Last post: Cox1066, 16 Jun 2023 20:14
Maybe it says the directors are no taking unrealistic salaries
Not too impressed with today's RNS - Sales Director sells all his holding (43,662 shares at 344p) and now holds no SOM shares. Okay he maybe selling for tax payment, house purchase, school fees etc - who knows? But it doesn't inspire confidence, other than rest of Directors are still holding reasonable amounts..
Started: Alessandro, 26 Apr 2023 13:30
Last post: Alessandro, 8 Jun 2023 14:28
Thanks, I heard that too in the AGM.
Cant wait too read the trading update, considering the large director sale back in March!
As they've explained in annual reports etc, the buy back is merely to offset dilution from share options in favour of employees/directors.
Share repurchasing, a meagre 12000 shares.
Started: piworld, 21 Mar 2023 12:27
Last post: Alessandro, 11 Apr 2023 14:26
the only valuation I can see for Somero is on Sharepad, and it equals 675p.
Is this realistic?
Somero Enterprises CEO, Jack Cooney, President, John Yuncza and CFO, Enzo Licausi, presents the FY22 results, for the period ended 31 December, 2022, followed by Q&A. There is a healthy North American market and significant contributions from Europe and Australia, which drove a strong finish to 2022.
Watch the video here: https://www.piworld.co.uk/company-videos/somero-enterprises-som-full-year-2022-results-presentation-march-2023/
Listen to the podcast here: https://piworld.podbean.com/e/somero-enterprises-som-full-year-2022-results-presentation-march-2023/
Started: AceofClubs, 8 Mar 2023 09:24
Last post: threeputt, 10 Mar 2023 11:16
nonetheless I believe it's currently oversold with what by my calculations is a stonking 6% final dividend which is better than any interest rate currently, and I believe there'll be buyers back on that basis alone. I just added back my traders at just under 344
I really like SOM and think it's a cracking long term hold but I've seen quite a bit of commentary around amazon having too much DC storage and assume this could be the case for many online players. Look around many of them have had very tough years. This is a key area of revenue for SOM. I worry that the recent mild profit warning could be a bit of a canary in the coal mine for what could be a difficult period for them, how difficult I'm not sure.
If you compare to many other companies on many metrics som is cheap. I added today and will continue to do so. It may not repeat its past Stella performance but i believe it will continue to churn out cash.
No major competitors, no outstanding debt, solid management team, and a clear focus on shareholder returns. Just a really good company with excellent products and continued growth prospects.
Only real business downside is cyclicality but it's rated accordingly.
Just wish there was no withholding tax on the dividend (sadly I have to hold outside of a pension).
Still throwing off cash , single digit P/E , good dividends , compared to all the "adjusted" so called profits out there and sky high P/E's this is brilliant company .
Started: piworld, 15 Feb 2023 15:20
Last post: strudel, 8 Mar 2023 09:14
....and, of course, nobody likes a divi cut, even if it is a slightly less painful reduction in the special divi.
Final results out this morning and yes they’ll pay $0.18 + $0.077 extra dividend per share.
will they pay a special dividend this year?
Full year results presentation given by Chief Executive Officer Jack Cooney, President John Yuncza and Chief Financial Officer Enzo LiCausi followed by Q&A.
Register here: https://bit.ly/SOM_FY_results_webinar
Started: Richard08, 31 Jan 2023 07:25
Last post: Rich62, 31 Jan 2023 10:05
I'd been a holder here since 2017, but had sold a while ago worried about the cyclical nature of this business and potentially deep global recession. However today's results look solid to me and given that US is likely to have a soft landing plus SOM growth in Australia and Europe, I'd added back this morning sub £4. Looks a decent hold to me, especially as global supply chain unlocks. Profitable, high dividend payer. I'll add more as this year plays out.
if you consider the company's profits are in the range of 30 mln with a market cap of 250 mln you will see how undervalued this is
reaction seems a little harsh i thought, not overly bothered as I'd already sold the trading element of my holding, the core remains intact and this remains my most profitable share ever
Strong update there given the underlying economy. Oz and Europe (surprisingly!) doing well. Still a few residual supply issues and revenue coming in slightly under but weathering the storm well so far it would seem. Could do with North American concrete drivers pulling their fingers out!
Started: Alessandro, 5 Dec 2022 12:37
Last post: Badgernator, 31 Jan 2023 07:25
Nice and steady
I was expecting the trading update for today
By the look of it, it is going to be next week now
Been wondering the same, they reported 26/1/22, 21/1/21, 22/1/20 & 16/1/19, all Wednesdays & Thursdays, so maybe Wed 18th or Wed 25th or Thu 19th or Thu 26th take your pick imo
When do they give the next trading update? There is no financial calendar on their website
Started: WhaleSnails, 25 Sep 2022 13:45
Last post: rinobiricchino, 10 Jan 2023 17:12
what happened yesterday??
their technology is patented
Som lists hacking as its biggest threat. I'm guessing China uses a lot of copied machines, just like most of its software is pirated
SirTradealot, small point of order, the US withholding tax rules don't just apply to listed US incorporated companies. Have a look at DEC. It's actually incorporated in the UK but its dividend payments are subject to withholding tax because its trading susbsidiaries operate in the US. DEC has made an election to be treated as "transparent" for US tax purposes so that any dividends paid up from its trading subsidiaries are not subject to withholding tax in the company but are, instead, subject to withholding tax when paid to its shareholders - this is more tax efficient because SIPP/ISA shareholders are liable to a lower rate of withholding tax.
It's really a question of labour costs, where labour is cheap i.e. China it can be done more cheaply with people.
Started: piworld, 21 Sep 2022 10:16
Last post: piworld, 21 Sep 2022 10:16
Jack Cooney, CEO, John Yuncza, President and Vincenzo LiCausi, CFO, present Somero’s Interim Results for the six months ended June 30, 2022. A Record H1 revenue driven by continued strength in the US market.
Video: https://www.piworld.co.uk/company-videos/somero-enterprises-som-interim-results-2022-presentation-september-2022/
Podcast: https://piworld.podbean.com/e/somero-enterprises-som-interim-results-2022-presentation-september-2022/
Started: Troajan, 11 Sep 2022 10:24
Last post: Troajan, 11 Sep 2022 10:24
Started: nodinero, 7 Sep 2022 10:55
Last post: nodinero, 7 Sep 2022 10:55
Look fine to me
Started: ToS1963, 7 Sep 2022 09:03
Last post: Alessandro, 7 Sep 2022 10:09
9% including the special dividend
9% divi, you kidding right ? In-line results
I was hoping for something better too, the market reacted a bit too harshly
A bit meh. Not as good as I’d hoped, but not terrible either. Yield remains good, with plenty scope for growth. Hold.
Started: Alessandro, 3 Sep 2022 12:23
Last post: Alessandro, 3 Sep 2022 12:23
Somero should report its half year results on Wed the 7th
Started: Benbay001, 31 Aug 2022 13:15
Last post: Benbay001, 31 Aug 2022 13:15