smilingmickey1
13 Jul 2016
Re: SOM tipped as "brexit-proof" Hi Gretel,Somero's reported adjusted eps of $0.23 /share for 2015 ($0.11 for the half year). Given that the recent trading statement is after the end of the first half I think we can be reasonably confident that reported adjusted eps will be at least $0.12 when the numbers are published in September. So I'm hoping we will see full year EPS ahead of Finncap's calculations at maybe $0.24 and a divi of at least .08 cents for the year.
gretel
13 Jul 2016
SOM tipped as "brexit-proof" SOM have just been tipped as a "Brexit-proof small-cap with big growth potential" (smiling mickey, the increased market forecasts were in the post I made incorporating Paul Scott's comments?):[link] stronger" tradingSomero Enterprises (LSE: SOM) makes equipment that's used by construction firms to produce perfectly flat concrete floors for warehouses. Somero said today that trading in June was "significantly stronger" than both the previous month and the same period last year. Management now expects full-year results to be "slightly ahead of current market expectations".Most of Somero's profits come from its home market of the USA. It's also working hard to expand in China, where the high-spec floors produced by Somero's equipment are relatively new.Somero shares currently trade on about 9 times 2016 forecast earnings and offer a 3.5% forecast yield. The group has ample net cash and strong cash flow. I think further gains are likely."
smilingmickey1
13 Jul 2016
Re: Finncap have increased forecasts Hi Gretel,I,m particularly encouraged by the mention of China. Hope fully all that investment is beginning to pay off. Any idea what "market expectations" for the year are?Sm
gretel
12 Jul 2016
Canaccord : Buy with 200p target Canaccord say Buy today, and have a 200p target:[link]
gretel
12 Jul 2016
Finncap have increased forecasts Paul Scott has updated today with his views on SOM - Finncap have increased their forecasts (hope he doesn't mind me copying with the link):http ://www.stockopedia.com/content/small-cap-value-report-12-jul-2016-asc-gfrd-nrr-beg-som-wjg-142184/"Trading update - a pleasing update from this US-based global supplier of laser-guided concrete laying machinery;(extract from RNS)...trading in June was significantly stronger than both the previous month and when compared to a year ago. This was led by particularly strong activity in North America; with China, the Middle East, and Europe each contributing satisfactorily to overall growth.The strong performance in June and the continuation of the positive trading environment together with margin improvement and solid operating cash flow generation mean the Company now expects to report results slightly ahead of current market expectations for the full year ending 31 December 2016 (extract ends).Good stuff.Finncap has edged up its forecasts for 2016 from $18.9m to $20.3m at the adjusted PBT level. This translates into forecast adj. EPS rising from 21.3c to 22.5c. There's obviously a translation benefit into sterling too.So at a rate of £1 = $1.315, I make that 2016 forecast EPS of 17.1p, so the PER is only 9.6.Net cash was last reported at $12.6m, which is likely to have risen since then. There's also a translation benefit into sterling, so this is £9.6m, or 17.0p per share - quite useful. Strip that cash out, and the ex-cash PER drops to only 8.7.My opinion - we have to remind ourselves that this is a highly cyclical business. So at some point, we don't know when, earnings are likely to fall. I doubt we'll see such a dramatic fall as happened in 2008-9 though. Also the company's balance sheet is now very much stronger than it was then.It's good to see Somero making positive noises about other markets too, not just its core US market. I think there's considerable scope for Somero to grow its overseas markets, and it's that potential upside which is my main interest in the company, as the peak of the cycle this time could be a lot higher than the last peak, if they conquer new markets where they currently only have a toe hold".
Simbrad
06 Jun 2016
"The group has announced an encouraging trading update ahead of its AGM highlighting that overall it is trading “comfortably in line†with expectations. No change to our forecasts, but clearly confidence in current forecasts becomes more assured. Today’s announcement should help provide greater investor confidence and underwrites our enthusiasm for this well-run growth stock." - finnCap's note out this morning on Research Tree.
