Initial concerns25 Sep 2022 13:45
This looks good value. I just have a couple of concerns. Isnt SOM very vulnerable to inflation due to its model of using ongoing contracts? Will advances in robotics make ultra smooth floors unnecessary? Also I know that Leadec is struggling. That's a very different company in many ways but it does have a similar customer base and it's seeing below inflation rises in contract prices, refusals to sign long term contracts and threats of industrial action. Overall I'm liking SOM for its p/e, its margin, the way it handles cash and its exposure to the dollar. I'm probably going to invest about 5k