Dp Poland Share Discussion Threads

[guernseymoney] 09/6/2016 16:55

FT Lex column today, commentary on Dominos, extract:


"""In another departure from US practice, Domino’s Pizza Group on Wednesday announced small minority investments in Icelandic, Norwegian and Swedish master franchisees. That allows it to participate in the success of Nordic franchisees with an equity investment; the US Domino’s Pizza Inc owns no equity in Domino’s Pizza Group.

In a crowded market, Domino’s Pizza’s strong revenue rally in the US may have run its course. With more room to grow, European pizza now tastes better."""

I love DPP and am heavily invested at various stages since day one, but still think we're in line for a(nother) dilution.....

[davidosh] 08/6/2016 16:23

stefan.....I can only see one non exec director has purchased in the last two years but none of the executives. What director buying are you seeing ? What info do you have about management as clearly not pulling up trees here yet if they originally targeted 50 plus stores in four or five years.

Checkout Crawshaws CRAW where I am a long term holder if you want to see absolute top quality management and a genuine food roll out that is delivering.

Paul Scott, the small cap blogger, covers the latest update from DPP here..

[stefanzygmunt] 08/6/2016 15:50

David
All I know is this is going to be worth far more than 32p by the end of the year.
Check out the management, check out the directors buys etc etc etc.
Well over 40p by Xmas imo

[davidosh] 08/6/2016 15:36

Do you guys not think Dominos UK would have looked at Poland if they are looking to do deals in northern Europe ? Maybe some countries either have less pizza buyers or more competition than DOM like to get the required margin and growth that they want..

[davidosh] 08/6/2016 15:33

Domino's Iceland was established in 1993 and currently operates 19 stores, generating EBITDA of £3 million in 2015. Iceland has a population of over 300,000 people and is one of the most successful Domino's operations on a per capita basis of the 81 countries in which the brand operates. Trading in Iceland is strong with sales ahead by nearly 20% over the past year. There is the potential to increase stores by a modest number and continue to drive like-for-like sales.

DP Poland has 24 stores but has turnover only in the region of £4.1m and EBITDA losses. This is not a new business and they have been over six years now in Poland and at the IPO said...

The management aim to roll out 50+ Domino's Pizza stores in 4-5 years, predominantly in Warsaw. A wider national roll out and sub-franchising will be considered later in the development programme


The turnover and demand has clearly not been there and maybe Icelanders prefer pizza compared to the Polish people. I am not so sure that simply multiplying numbers per head of population is any use here as the business model is not delivering yet and stores have recently been closed. Not a good scenario

[parvez] 08/6/2016 09:16

aldgatee - great analysis - which ever way you look at it DPP is way undervalued so hope investors will wake up to the potential here - I have 2 Polish friends who were very complimentary of the service they received from DPP outlets when they went back home recently and they both mentioned that market is massivevly underserved so huge huge potential to grow

[aldgatee1] 08/6/2016 09:04

Looks like DOM is paying £24m for under half (c46%) of companies servicing a population of 11m. Presumably the whole is therefore valued at c£50m.

DPP has a market cap of £38m (at least it did first thing this morning) for access to c40m people. You should maybe strip out the cash of c£6m too.

GDP per capita is not the same across the territories & stage of development is different but, at first glance, DOM is paying £5m per million of population whilst DPP is trading at around £0.8m per 1m of population.

[parvez] 08/6/2016 08:42

well spotted,hybrasil. just topped up too not much available though

[hybrasil] 08/6/2016 08:35

changed my mind and bought more this am.

[jakleeds] 08/6/2016 07:52

Well spotted, thanks .

[hybrasil] 08/6/2016 07:22

Todays DOM rns is extremely significant. Hopefully they do not make a play at dpp for a few years.At the moment they would get it for 50/60p a share.

If Mr Shaws strategy is executed this will be worth a whole lot more than that.

Yummy Pizza.

[stefanzygmunt] 01/6/2016 16:19

Seems to me, at the moment no one wants to sell for 29p

[jakleeds] 01/6/2016 15:21

Double bottom?

[hybrasil] 28/5/2016 07:19

500k traded yesterday at nearly 32p. Hargreaves Hale probably selling down a little.

[hybrasil] 26/5/2016 07:35

bought more yesterday and this is now the biggest holding in my portfolio. I am putting
them away now for two years. Paid a little too much (31.5)

[stefanzygmunt] 25/5/2016 10:25

I think that this is one the most secure investments in AIM at the moment but it is a long term investment and most aimers want quick in and out.
Reading the background behind this company is extremely positive and encouraging. The people involved are 5 star in my opinion. Also, Poland is a great place to invest.

[matt123d] 25/5/2016 09:54

Someone's keen to get hold of stock.

[hybrasil] 25/5/2016 05:55

Cannot fathom why the volume has gone ballistic

[hybrasil] 24/5/2016 15:47

Why suddenly such large volume

[parvez] 24/5/2016 13:48

30p to buy...breaking out

[matt123d] 24/5/2016 09:18

Above last months high, a little more buying and could see mid 30s pretty quickly.

[jakleeds] 24/5/2016 08:38

30p this week ?

[hybrasil] 23/5/2016 10:10

29 is the price you have to pay

[proactivest] 04/5/2016 08:21

Video interview with Peter Shaw



DP Poland Plc (LON:DPP) chief executive Peter Shaw believes that the company will continue to grow throughout 2016, after it recorded its 14th consecutive quarter of double digit like-for-like system sales growth in the first quarter of the year.
“The consumer economy is strong in Poland, people seem to be excited by the dominos offer and I certainly believe we will continue in the same vein,” he says.
Shaw also announced that DP Poland is to open three new stores outside of Warsaw, two of which will be “in existing cities where [DP Poland] currently [has] stores, and also there’ll be one new city in there as well”. For the time being, he says he won’t reveal the name of the new city, citing “competitive reasons” for his desire to keep the location under wraps.

[stefanzygmunt] 03/5/2016 16:56

Maiken, You best stay away then, although this company is going to be worth far more than £35m over the next couple years.
Do yourself a favour and do your research on the company then make a proper considered comment.