Hardboy
21 Dec 2017
Re: Tax cuts passed by Senate "I am surprised that there was little information following the recent hurricane" See Smiling Mickey's post of 14/9
claude reins
21 Dec 2017
Re: Tax cuts passed by Senate Thanks for all the useful input. On a parallel subject, I am surprised that there was little information following the recent hurricane even though the disruption (rather than the destruction) in the Fort Myers area was substantial. For example, on the website it talked about the non-availability of power for some considerable time. I would have liked an update on the more recent situation and the impact on the company's US business. We never had it, or if we did I must have missed it.
smilingmickey1
21 Dec 2017
Re: Tax cuts passed by Senate Hi Gretel. Thanks for keeping us posted on the issue of US tax cuts (just implemented.My back of the envelope calculation suggest Somero will benefit from an annualised tax reduction in the region of $3-$3.5 million over the period of a year (based on 2016 pretax profits. ) Headline corporate tax rate in USA cut from 40% to 20%. Corporations generally pay a lower level that headline. Somero accrued for tax around 33% of pre tax profits in 2015 and 2016. One would expect a drop in the tax rate to somewhere in the region of 16-20%. So maybe an increase in post tax earnings of 15 pus %. SM
gretel
21 Dec 2017
Moving up prior to trading update Two nice buys totalling £1.34m at 290p yesterday, which caused a decent move up.SOM are due a trading update in early January, so not long to wait. Given September's outlook I'm pretty confident it will be solid at worst and excellent at best:"With the solid H1 2017 performance and healthy momentum carrying over into H2, the Board expects Somero to deliver another successful year of growth in line with current market expectations."
gretel
19 Dec 2017
Re: Tax cuts passed by Senate The House of Representatives is expected to clear the US tax cuts Act this afternoon after some Republicans withdrew their opposition. Looking good for SOM.
Hardboy
18 Dec 2017
Re: Tax cuts passed by Senate Headline in the FT"US companies set to be big winners from Trump’s tax reform"
gretel
14 Dec 2017
Re: Tax cuts passed by Senate The Senate last night finally agreed the tax cuts package at 21% for corporation tax - the final vote is next week and then sent to the House for final passage:[link] note that AHT's results this week were excellent - particularly from their Sunbelt operation, which is most relevant to SOM. There was good business resulting from clean-up operations post-hurricanes etc, but hopefully this is still a good overall pointer for SOM.
gretel
03 Dec 2017
Tax cuts passed by Senate Trump's tax cuts have passed the Senate and are almost certain to be enacted quickly now, cutting corporate taxes from 35% to 20%.SOM paid $7m tax last year at an effective 33% tax rate on $21.3m net profit. Historically and simplistically, at 20% tax SOM would save around $3m of tax - and of course that saving will grow as profits increase going forward.Quite a benefit to SOM, representing around 3.5p EPS per share on 56m shares in issue - or say an additional 40p-50p on the share price:[link]
gretel
17 Nov 2017
Re: New product news, and US tax cuts Overnight the US House of Representatives passed tax reforms which would slash corporate tax rates to 20% (from 35%) - now the Senate must do the same:[link]
gretel
06 Nov 2017
Re: New product news, and US tax cuts I note that sector comparator Ashtead has been rising nicely in anticipation of the promised tax cuts in the USA which could lift earnings by 15% according to this - SOM would benefit just as much if not more:[link] FTSE also got a lift from equipment rental firm Ashtead Group, which rose 2.2 per cent, or 43p, to 1977p as analysts talked up its prospects in the US if President Trump fulfils his promise to cut corporate taxes.Analysts at Stifel, Investec and Citi Group this week all published ‘buy’ ratings on the firm, estimating US tax changes could boost earnings by more than 15 per cent."
gretel
26 Oct 2017
New product news, and US tax cuts I note that there's been progress in Trump's tax reforms, which would lower the top corporate tax rate from 35% to 20%. The bill is hoped to be passed by the end of November. This would dramatically cut SOM's tax rate and obviously greatly increase post-tax profits and EPS at a stroke.SOM have released a new product which they're making quite a fuss about:[link] Release: Somero® S-22EZ Laser Screed® Machine Now AvailablePosted October 24, 2017 New features designed to increase profitability and boost productivityFort Myers, FL – October 24, 2017 – Somero® Enterprises, Inc., a leading manufacturer of technologically advanced concrete placing equipment and associated machinery, is pleased to announce the launch of its new S-22EZ Laser Screed® machine. The most technologically advanced model available on the market today, the S-22EZ includes all of the same cutting-edge features and benefits as the Somero S-22E model while incorporating a variety of new enhancements – inspired by customer and operator feedback – specifically designed to improve floor quality, increase profitability and boost productivity.The major advancement on the S-22EZ is the incorporation of a new EZ Clean Head. The EZ Clean Head includes a rolled profile on the auger support beam and pivots 90 degrees to make cleaning faster and easier than ever before. Additional enhancements on the S-22EZ include a uniform body profile, increased storage with LED lighting, LED work lights, illuminating fuse panel and oil sprayer mount. The S-22EZ also comes equipped with a hose reel when you purchase the optional pressure washer, and head transport stands are now standard.Along with these advancements, the S-22EZ features 360° machine rotation, a 20 ft. (6 m) telescopic boom, customized OASIS laser control system and Quick Grade Set. Integrated diagnostics and full-time, automatic valve calibration make operating the S-22EZ simple and keep the machine operating at optimum levels. The optional Roller Plow enhances performance when placing challenging mixes such as those with integrated fibers, large aggregate or low slump.What further differentiates the S-22EZ is the optional Somero Floor Levelness System®, which is the first technology of its kind designed to monitor Laser Screed machine performance and alert the operator of any issues in real time. Several other machine options are available to meet customer needs, including head size, rotating screed head and extra storage."
claude reins
12 Oct 2017
Re: Bouncing nicely now Hadn't realized you kept such a close watch on the detailed warehouse ifrastr5ucture situation in the US especially the SE and W. Any special knowledge leads you to say this which will affect Somero as distinct form say Ashstead?
gretel
12 Oct 2017
Bouncing nicely now Looks like a bounce here is gaining momentum. The awful recent post-hurricane destruction and now fires in California (2,000 structures destroyed to date) have left a lot of infrastructure, warehouses etc in need of rebuilding.
gretel
19 Sep 2017
Encouraging signs for SOM As others have commented, there should be plenty of work coming for SOM as a result of the tragic weather events in the USA and the Caribbean.Also, here's an encouraging report which indicates that non-residential construction in the USA is looking good not only for this coming Q4, but also for 2018.Also interesting that Chinese demand for construction equipment has been picking up:[link] (NYSE:CAT) stock touched a new all-time high Monday on the heels of a bullish report that forecasted strong demand for construction equipment.Analysts at UBS upgraded Caterpillar to “buy” from “neutral,” citing a positive earnings outlook. UBS also hiked its price target to $140 from $116. The investment bank noted that private non-residential construction activity is on track to strengthen in the fourth quarter, followed by continued growth in 2018.... ...The Peoria, Illinois-based company said it benefited from mining- and energy-related sales in North America, as well as Chinese demand for construction equipment."
Hardboy
15 Sep 2017
Re: News from Somero re hurricane "This storm will not impact our business "I sincerely hope it will - there's going to be a lot of rebuilding work to be done; and one would hope SOM should be able to pick up some of it.
