gretel
02 May 2017
New Buy tip for SOM This should bring in some more interest:[link] EnterprisesWith President Trump looking to spend $1trn on infrastructure in coming years, I reckon I've found the perfect under-the-radar business to capitalise on this building boom.Somero Enterprises (LSE: SOM) specialises in producing laser-guided equipment that assists in the installation of concrete slabs. Somero's equipment and technology ensures a high level of precision in concrete surface flatness, resulting in the faster installation of each slab at a lower cost. Although the company has operations in Europe, China, the Middle East and Australia, the bulk of the its revenues are generated in the US.The laser specialist's shares have surged higher over the last 12 months, rising over 100%, and it's not hard to see why when we examine the numbers. Somero generates a high return on equity (33%), a high operating margin (27%), strong cash flow and has minimal debt. Revenue has increased 76% over the last three years and earnings per share have risen from 13 cents to 28 cents in this time. 2016 results announced in March were excellent, with revenue jumping 13% and profit before tax increasing 22%.However despite the impressive numbers, Somero trades on a forward looking P/E of 15.3, which seems attractive for a company that should enjoy tailwinds from Trump's infrastructure boom. A dividend of 2.6% is also on offer, further sweetening the deal."
gretel
03 Apr 2017
News : opening of training facility News of the opening of SOM's first training facility. What's really interesting is that it costs $649 and gives rise to American Concrete Institute (ACI) certification.I imagine this will be pretty profitable, and it also gives rise to an additional revenue stream which further counters cyclicality:[link] to Open First-of-its-Kind Concrete Training Facility in Fort Myers Posted March 27, 2017 in NewsBryan Birdwell to Facilitate Exclusive ACI Certification Training Fort Myers, FL – March 27, 2017 – Somero Enterprises, Inc., a leading manufacturer of technologically advanced concrete placing equipment and associated machinery, is opening a custom-built 6,300 sq.-ft. facility to support its pioneering Somero Concrete Institute (SCI) training programs. Marking the launch of the facility are the first-ever sessions of a new program that will earn industry professionals their American Concrete Institute (ACI) certification. Facilitated by 25-time Golden Trowel Award Winner, Bryan Birdwell, the comprehensive ACI program includes everything professionals need to receive the ACI CFTM-P certification. The two-day course will be hosted April 24-25 and April 27-28, 2017, at the Fort Myers facility.“This is the first time that we’ve offered a general interest course for industry professionals through the Somero Concrete Institute,” said Howard Hohmann, Executive VP of Sales. “There’s a severe shortage in trained finishers across the industry and this is one of our initiatives to help bridge the gap. The combination of our new facility and program offerings truly takes our training capabilities to new heights.”.... ....In addition to the product training and ACI programs hosted at the SCI facility, Somero also offers onsite training across the globe through its skilled team of field technicians and runs a Concrete College in Shanghai, China.“We’re constantly speaking with our customers and industry professionals to learn what support they need for continued education and success and the ACI certification was at the top of the list,” said Lee Knuuttila, U.S. Field Support Professional Manager. “The program is a nice complement to our Laser Screed product training that is jointly held at our global headquarters.”The ACI program costs $649 per participant and includes the exam and CP10 book. For complete curriculum information and to register for upcoming sessions, visit Somero.com."
Ramptastic
29 Mar 2017
Re: New tip as a takeover target I was going to top slice this "winner" but have now decided to run with it - the valuation is attractive, although Somero must be a cyclical business. Currently though, this seems to be something in their favour as the "cycle" is enjoying an upswing.Jim
gretel
28 Mar 2017
New tip as a takeover target [link] Donald Trump’s surprise election win, shares in small-cap laser-guided equipment manufacturer Somero Enterprises (LSE: SOM) have been on something of a roll. Priced at 173p on November 9 — the day after the vote — they’ve since climbed to 300p (+73%) following encouraging comments regarding infrastructure spending from the new president. Given that the vast majority of sales comes from the US, this kind of reaction is hardly surprising. But it’s not just political influence that should make Somero’s stock more attractive to deep-pocketed competitors. Its most recent set of annual results confirmed that 2016 had been an “exceptional year” for the company.Thanks to six of its 11 geographic markets growing in 2016 (led by North America, Europe, Australia and China), Somero is heading towards achieving its five-year goal of becoming a $90m revenue business in just three years. In the 12 months to the end of December, revenue climbed 13% to a record-breaking $79.4m, with adjusted EBITDA rising 23% to $24.6m. Profits before tax came in 22% higher at $21.3m, with cash flow from operating activities rising 17% to $16.9m. For those who like robust balance sheets, Somero won’t disappoint here either. It had $20.2m in net cash at the end of the year — a 60% increase compared to 2015. The massive 61% hike to the total dividend over the last year is just another indication of how financially sound this business is.With its new product pipeline continuing to generate revenue growth and shares still trading on a fairly undemanding valuation of 13 times forecast earnings, I’m left wondering how long it will be before the bids come flying in."
smilingmickey1
27 Mar 2017
Re: trading som on iii As you say Topalov, all depends on your personal circumstances.SM
gretel
27 Mar 2017
Tipped by Simon Thompson FYI, here's Simon Thompson's tip for SOM from last week on the IC web site:"Aim-traded shares in Somero Enterprises (SOM:282p), a Florida-headquartered company specialising in the design, assembly and sale of patented, laser-guided concrete levelling equipment for commercial floors, have taken out my upgraded 275p target price ('Four trading plays', 16 January 2017), and doubled in value since I first recommended buying at 140p ('On solid foundations', 22 April 2015).The operational performance fully supports the ongoing re-rating: the company has just posted a 27 per cent increase in full-year EPS to 26.2¢, better than analysts had expected, and the trading outlook prompted analyst David Buxton at brokerage finnCap to upgrade his current year EPS forecast by almost 5 per cent to 27.4¢. As I have pointed out before, not only is the business heavily exposed to the buoyant US market - the region accounts for three quarters of Somero's revenue - but trading activity is being boosted by a combination of new product launches and a healthy non-residential construction market, both of which are supporting demand for replacement equipment, technology upgrades and fleet additions. For good measure, the company is a likely beneficiary of the Republican administration's plans to grant US$137bn (£112bn) of tax credits to construction companies to leverage US$1 trillion of infrastructure investment, and proposals to cut corporation tax to further stimulate investment spend.A key take for me in Somero's 2016 financial results was the robust cash generation which has boosted closing net funds by 60 per cent to US$20.2m, a sum worth almost 30p a share, and that's after taking into account US$4.4m of capital expenditure and the payment of US$4.2m of dividends. This has enabled the board to lift the dividend per share by 61 per cent to 11.1¢ and a special dividend is likely to be announced later this year. Mr Buxton predicts a 17.8¢ special payout in addition to the normal dividend announced, implying the shares offer a prospective dividend yield of 8.4 per cent. That's attractive as is a cash adjusted forward PE ratio of 11.In the circumstances, I have raised my target price from 275p to 325p to value the company on a more reasonable cash adjusted PE ratio of 13. Buy."
Topalov
24 Mar 2017
Re: trading som on iii I agree that brokers always use poor exchange rates. However I still prefer to hold in an ISA - I have over £5k of dividend income and am sitting on unrealised capital gains of well over the £11k personal allowance. It depends on your personal circumstances.
smilingmickey1
24 Mar 2017
Re: trading som on iii I've posted this comment a few times on this board.Whoever you choose as your broker remember that the dividends are paid in dollars. If you hold the stock in an ISA the dollars are immediately converted to sterling. Brokers may use this as an opportunity to make so extra money from you by using a "poor" exchange rate so your divi will be less than you might have anticipated (that certainly happened to me!FWIW my Somero shares are now held outside an ISA and the divis deposited into a non interest bearing dollar account.SM
Topalov
24 Mar 2017
Re: trading som on iii I had the same problem. I was very keen to top up my holding following the results so phoned up and they said there is a technical glitch and they took my order over the phone at online commission rate.
notruss
24 Mar 2017
trading som on iii Anyone able to trade SOM online with iii?I always get an error now saying technical issues getting quotes or placing orders.Can trade other shares no probs.
gretel
24 Mar 2017
Naked Trader buys SOM Good to see the Naked Trader buying in yesterday (and buying SCH too, which I also own):[link] other is the lovely Somero (SOM) . That just had to be bought - in the right area at the right time with great fundamentals. One mag today has also written a story suggesting it could be a takeover target. If they are right, I wonder whether there could be substantial upside up to 450p? Although a US share it is buyable in an ISA but some firms ask for a form to be filled out first."
smilingmickey1
22 Mar 2017
Re: Artemis shareholding up to 12% My mistake bboy!
bboy
21 Mar 2017
Re: Artemis shareholding up to 12% sorry - correction - 500,000 shares traded at 300.5 at 4.05pm (total volume for day 682k) - so this must be reason for sharp price jump...
bboy
21 Mar 2017
Re: Artemis shareholding up to 12% Unfortunately Artemis notification was a sale to take holding below 12%...but also separate notification from a different investor taking holding above 13%.... still sitting on 300/305 spread at close on c700k volume - lots of smaller buys...looking good following great results last week
smilingmickey1
21 Mar 2017
Artemis shareholding up to 12% See the news item today. Shares up another 6%!
