Hardboy
12 Jan 2018
Dealing Well that was annoying. On the strength of this update I decided to top up my holding, expecting the share price to rise quickly in the early minutes of trading. When I checked in it looked like I'd be paying about 356. I had to complete a W 8BEN before I could trade. This took about 20 minutes & I ended up paying 364. I did not have to fill in a W 8BEN when I originally bought & I thought the form was for where the company was listed, not where it was registered. Not too bothered as this is a long term growth story.
Hardboy
12 Jan 2018
Re: Results ahead of expectations...... Yes, cracking stuff. I do wish companies would pre advise of these trading statements. I can see no reason why they don't, but very few do. Expect a rise hike today.
gretel
12 Jan 2018
Results ahead of expectations...... Beautiful stuff...again.EBITDA to be "comfortably ahead" of expectations.And "net cash at 31 December 2017 is expected to be not less than $18.5m, well ahead of market expectations of $16.5m".America and Europe are storming ahead - and encouragingly India and China are both beginning to motor.And looking ahead, we can expect another special dividend, plus:[link] record results in 2017, the Board is confident in the Company's ability to deliver another year of profitable growth in 2018 as the underlying market conditions in our core markets remain positive and as the Board continues to see significant growth opportunities in our other territories. The Board's confidence is further supported by recently enacted pro-growth US corporate tax law changes which are expected to stimulate increased economic activity in the Company's largest market."
gretel
09 Jan 2018
New highs today on new Finncap note Finncap's note yesterday supporting their increased 420p target succinctly summarises the US tax reforms I've been banging on about as follows:"Tax changes. The US tax reforms proposed by the US President passed intolaw just before Christmas. The main change is to reduce the headlinecorporation tax rate from 35% to 21%, effective 1 January 2018. Profits madeoverseas are also allowed to be repatriated back to the US tax free, and apartial amnesty on historic profits at reduced rates. A readjustment of thecompany’s deferred tax assets is expected, which will be a one-off non cashitem. In addition, the reforms allow a more generous, immediate expensing ofcapital equipment purchases, which is expected to result in customersaccelerating their purchasing of equipment in the short term, while alsopotentially stimulating longer-term investment plans by manufacturers."They've increased EPS for this year by almost 20% to 34.4c, and the forecast cash pile rises to $26.8m - potentially bringing another special dividend.
gretel
08 Jan 2018
Finncap raise price target to 420p Nice - Finncap have today increased their target price to 420p (from 350p). A hefty increase:[link]
gretel
07 Jan 2018
Re: Tipped in Telegraph for 2018 The Telegraph's tip for SOM finally appeared in Saturday's print edition, so hopefully that will attract some further buying interest this week.
smilingmickey1
04 Jan 2018
Re: Hello Hardboy,I just think the share price have been marking time for most of the year year after the meteoric rate of increase in the share price during 2016 and early 2017. I've been happy just to see the cash returns from the divis during the year . Journalists may have some effect having noticed a dip in the share price but they are only writing about the strong fundamentals of the business and its low valuation which I hope will continue to out when the forthcoming trading statement and results are reported.There should be a one off boost to earnings once the new taxes in the USA are implemented. Enabling the production of smooth floors, with lower labour costs seems a niche business with more growth potential. I'm expecting to hold until there are signs of new entrants, some disruptive technology emerges or the Company is bought out.
Hardboy
03 Jan 2018
It shows what a couple of journalists can do for a share price, specially a low profile share. Apart from the US Tax changes, which were largely expected to go through in one form or another for some time this is the same company with no new news that it was in late November; but it's now worth 20% more.
Ramptastic
03 Jan 2018
Re: Tipped in Telegraph for 2018 I've noticed on a few stocks this Autumn where the company has a very slight "profit warning" and the shares get hammered. It can make a great entry point.In SOM's case I bought more after the last results and this seemed to have worked well so far.J
gretel
03 Jan 2018
Tipped in Telegraph for 2018 [link] Enterprises Market value: £162m Turnover (2016): £59m Pre-tax profit (2016): £16m Somero Enterprises is a £160m business that designs and manufactures laser-guided machines involved in laying concrete. Simon Moon and Fraser Mackersie, managers of the £660m Unicorn UK Income fund, said: “Despite its modest size, Somero is the clear global market leader in this specialist niche, with a strong presence in North America and growth in developing countries. “The shares are not expensive, trading on 15 times earnings for 2017, with a dividend yield of 3pc and cash available.”They said the growth in Somero’s business was organic as opposed to derived from acquisitions so it didn't require major expenditure, enabling the company to pay special dividends when it had built up excess cash.“With significant US earnings, American tax reforms could also provide a meaningful boost to future earnings – Somero paid an effective corporate tax rate of 30pc in 2016,” they added."
Hardboy
02 Jan 2018
Re: Main tip in today's IC And it's all very well listening or reading what "experts" say, but what is most important is what he company says, and I believe we should get a pre close trading statement early this month.
gretel
02 Jan 2018
Re: Main tip in today's IC I note that the IC article doesn't even mention that SOM will benefit heavily from the new tax cuts in the USA - another reason for buying.And regarding those tax cuts, I also note that the new legislation provides for capital expenditure to now be written off for tax purposes in the year it's incurred, which it can't be at present. SOM should therefore benefit from this as well as the more straightforward tax cuts.
gretel
02 Jan 2018
Re: Main tip in today's IC Hi jim - many thanks. Worth adding the concluding paragraph too (which someone sent me)!"IC View An expansion to its Fort Myers headquarters in Florida, accommodating future growth, will cost $1.3m, with most expenditure occurring in the first three months of 2018. But, while the shares are trading on a multiple of just 13 times forecast 2018 earnings, we think a re-rating is probable. Buy."
jim b-r
29 Dec 2017
Re: Main tip in today's IC Here you go:High-tech concrete-levelling is not a business description that rolls off the tongue. But that shouldn’t detract from its commercial potential. Indeed, Somero Enterprises (SOM), which provides equipment, training and customer support for this process, reported pre-tax profits of $12m (£9m) for the six months to 30 June 2017, up from $10.4m a year earlier. And the group raised its dividend by 10 per cent to 2.75¢ while declaring a further special payment of 13.3¢. Despite these encouraging signs of progress, Somero’s shares are attractively rated.SOM:LSESomero Enterprises Inc1mthToday change3.28% Price (GBP)299.50Somero’s undemanding valuation has a lot to do with a trading update in June that highlighted flat performance in North America due to poor weather and political uncertainty, and slow trading in China. The news prompted a share price fall, and we downgraded to sell. But the latest results and the value now on offer suggests it’s a good time to revisit the investment case. Indeed, even when faced with regional challenges, overall revenue rose from $39.7m to $42.4m in the six months to the end of June. Management also attributed higher first-half profits to cost management, price increases and better productivity. There are signs trading is now set to pick up. North American first-half sales were down 5 per cent year on year at $28.4m, but heavy rains subsided towards the end of the period. This resulted in the highest levels of trading seen all year at the end of June and positive indicators of a “solid” second half. North America constitutes around two-thirds of Somero’s overall top line.The same story played out in China – first-half sales fell from $3.8m to $2.7m, but the best trading of the year was seen at the end of June. Management expects to see further improvements and is “re-looking at China” via a strategic review. China is estimated to use half of the world’s total concrete, representing a serious opportunity for Somero even if long-running fears of slowing economic activity play out.Europe and Latin America were the group’s star performers, albeit starting at a lower base than North America. European sales rose 108 per cent to $5.4m, while Latin America’s leaped 750 per cent to £1.7m. The rest-of-the-world regions, including Australia, Southeast Asia, Korea, India, Scandinavia and Russia, also lifted revenues 79 per cent to $3.4m. New product sales contributed $1.4m, including the ‘S-158C’ model in China, the SP-16 Concrete Line Pulling and Placing System, and the ‘next generation’ 3-D Profiler System.Meanwhile, first-half cash flows from operations rose 62 per cent to $9.4m, leaving the group with $18.3m net cash at the end of June. The healthy balance sheet underpinned the decision to pay the special dividend, which is expected to take the full-year yield to nearly 7 per cent. Further special payouts could be on the cards, adding to Somero’s appeal.
gretel
29 Dec 2017
Main tip in today's IC Nice - a main tip of the week in today's IC. Should bring in more buying after the New Year:[link] got the full text please?
