PIP003 AIM Listed Small-Cap Share Review Somero (SOM)

Welcome to The Private Investor’s Podcast. This time Maynard and Mark’s review of AIM listed small-cap Somero Enterprises (SOM) and the investment potential of concrete levelling machines.

Mark first bought Somero (SOM) in April 2016 adding a further nine purchases making it one of the largest holdings in his portfolio.

Somero Enterprises is a US domiciled company listed on the UK AIM share market that specialises in concrete levelling machines for large warehouses, fulfilment centres, large factories and data centres. It's quite a popular share among private investors with 13% of the shares owned by clients of Hargraves Landsdown and Interactive Investor, which comes to a collective investment of 30 million pounds, which sounds a lot for what is a small American business with just a 250 million market cap.

Last year was exceptional for Somero because sales before the pandemic were between 80 and 90 million rising to 133 million indirectly benefitting from the growth of eCommerce.

The question is; what does the future hold for Somero? Will this growth continue, are there any black holes in the accounts and what will Mark do with his holdings after this detailed breakdown of Somero Enterprises (SOM)?

Timestamps:

0:00 to 1:46 Introduction to Somero Enterprises.

1:47 to 2:37 W-8BEN form.

2:38 to 4:50 Mark’s first purchase of Somero and moving brokers.

4:51 to The growth of eCommerce and dying high street.

6:20 to 7:30 Somero’s USP.

7:31 to 12:15 The financials and accounts.

12:16 to 13:30 The international growth of eCommerce.

13:30 to 15:00 The different products Somero sells.

15:01 to 18:20 Breaking down the disclosure in the annual report.

18:21 to 20:30 Somero management team.

20:31 to 22:97 Special dividends.

22:98 to 28:40 What will cause a re-rating for Somero and previous headwinds?

28:41 to 30:12 Closing thoughts and wrap up.

Hope you enjoy it and have a wonderful day.

Maynard & Mark

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Disclaimer: This presentation is for educational purposes only. All opinions and information are for demonstrational purposes and do not constitute investment advice. Trading and investing carries a high level of risk and are not right for everyone. If you need financial advice, consult with a regulated financial adviser in your country before making any decisions.