Somero Enterprises Inc is a US based agricultural company which is listed on the LSE. Trendline support holds.

Somero Enterprises (LSE - SOM) is a US-based agricultural machinery business dealing in a niche market of concrete laser screed. An interesting point about this stock is that it is on the LSE, while being based in the USA. This is quite rare and gives UK investors protection from fluctuations in GBP/USD rates.

From a financial aspect Somero is good. Total market cap is £230M with a forecast for 2021 turnover to be $128m, with a profit after tax of $18.2m. Looking at the balance sheet total cash on hand was $32.3m with total assets amounting to $84.6m. Total liabilities amounted to $20.08m, leaving Somero net positive of $64.57m. This gives the company a L/A ratio of 23.7%.

From a technical aspect Somero also looks okay. While the current trend is negative (Like most stocks at the moment) trendline support below still holds at £3.95. This is the first support, a break of this trendline could see the stock head towards £3.45 and then £2.89. While these are some big drops, the financials help back up a strong share. Looking to the upside, targets are £4.50, followed by £4,90 and then £5.50 followed by £6 and the trendline resistance at  £6.50.

Somero does have its risks. Firstly it is a micro-size business in regards to market cap, (£230m), therefore its bordering a penny stock, but not quite. Volume is quite low on this share so moves up and down can be quite intense. However, despite their being risks, the main positive aspect about Somero is that it is profitable, it has a good cash pile and strong revenues. Investors like