Somero Enterprises - value trap or bargain to be snapped up? (IHT QUALIFYING)
Selling to over 90 countries, this high margin business has diversified exposure to the global construction industry. Up until recently sales growth over the past few years has been stunning, driven by a booming US non-residential construction market. What's gone wrong?
Somero Enterprises Inc. (AIM: SOM) is an unusual AIM stock as it is a US-incorporated business whose operations are primarily (though far from exclusively) US-based. In the words of Howard Hohmann, VP of Sales: “Somero designs, assembles and sells patented laser-guided equipment that automates the process for placing concrete horizontal floors.” In this regard, it also provides education/training in the use of this equipment. Selling to over 90 countries, Somero has diversified exposure to the global construction industry. Interim results disappoint, although the bad news was known already Half-year results from Somero for the period ending 30 June 2019 came…