WickedLester wrote:My own preferred good news this morning was the trading update from Somero: https://www.investegate.co.uk/somero-en ... 00067955F/ which is one of my largest holdings. I think it's a cracking little company with fantastic profitability metrics (ROCE+ margins) and free cashflow that generates reams of dividends. Totally undervalued.
FWIW simoan I took a look at Somero and decided to buy some today. Obviously I could have got a much keener price before the trading update but I feel they are still not expensive at £3 and cashflow is excellent.
I see you're not into Technical Analysis then? I'm sure a TA bod would have told you to wait until the price breaks through resistance at the 300p level. Of course, I'm only joking and have no interest in TA myself! I like the company which is why it's such a large holding for me, in particular it has very sound management with great customer relationships and a rock solid balance sheet. The generous dividend stream is just a nice by-product of the excellent profitability the company enjoys. Downside would be a major recession in the US which accounts for the vast majority of revenue and profit. Personally, I don't see that happening currently with such low interest rates, but a US construction slowdown is something to keep an eye out for.
All the best, Si