Reassuring. |
you playing the trend here DavROs? |
Nice rise but hardly a short squeeze - go look at Tesla if you want to see one of those |
"Short squeeze?"
Could be, I'm not sure what part of the announcement would have caused the shorts to run for the hills - the best bit was, UK sales. |
Short squeeze? |
Looking at yesterdays (Friday 31st Jan) volume and the shooting star candle formation, it looks like a decent short set up here. Chart would suggest 290 retest , and if it doesn't hold, 270 shortly thereafter. |
I wonder why PH have upgraded again. What's changed..? |
Peel Hunt 'buy' tp 340p up from 325p |
Interesting video about DOM's adventures in Scandinavia:
What Happened To Domino’s In Northern Europe?
Iceland is a notoriously hard market for international fast-food chains to break into. Domino’s is the exception — the pizza chain has the biggest market share in fast food there. But that love for Domino’s doesn’t extend to the rest of the Nordic bloc. In October 2019, Domino’s Pizza Group, which owns stores in Iceland, Norway and Sweden, announced it’s exiting its business in those markets. |
Sad news indeed. |
Tragic news, thoughts go out to the family, RIP David. |
Good business, added a cheeky long position on Friday! |
Sorry old news.
Keep up Suet |
Chairman gone!
Suet |
Berenberg upgrade from 200p to 225p (still a sell) may have caused the price volatility this morning. They think the share price has responded too positively to the news regarding the sell off of the international operations - they think it’ll be a rocky path.
I opened a modest short just before the close. My personal view is that the new NEDs investment record is difficult to fathom and perhaps not that great - happy to hear others constructive opinions. Regardless, the share price takes for granted more good news than bad in my opinion. An EV of £1.65bn and a lot of disgruntled franchisees that contribute to that wonderful ROC is what I see.
Best of luck whether you’re long or short. |
Half yearly report suggests underlying profits of just over a million for DPUKs one third share of the German subsidiary. Admittedly that’s not EBIDTA, but I don’t think, despite there being over 300 stores, it’s a cash generating cow - and thus perhaps not a hidden gem? Could be wrong. |
I have never understood why DP UK decided it was a good idea to go into Scandinavia and Iceland when they had needed to get DPE to effectively take over the running of the German start up.
If UK don't trigger the put option before, I would be very surprised if DPE don't use their call option in Jan 2022 to take all the future upside in Germany. |
Thanks AA - difficult to put a value on that. |
Might be this: DPUK has a put option to sell its 33% in Dominos Germany from 1 January 2020, Dominos Pizza Enterprises has a call option to buy the 33% from 1 January 2022.
Consideration based on between 10 and 12 times adjusted EBITDA for the German joint venture. Not sure on a likely value. |
Interesting director RNSs. My interpretation is that the new NED is adding via his hedge fund and he’s having to declare all purchases even though he hasn’t passed any new thresholds. Looks like he’s bought thus far up to 280p. I guess the bit that really intrigues me is what an activist wants the board to do - they’re selling off the international businesses, but what other quick gains are there? None that I’m aware of! |
The market seems to be applauding today's appointment of a NED with 'skin in the game':
"...Usman is the Founder, Managing Partner and Chief Investment Officer of Browning West LP ("Browning West"), a Los Angeles-based investment partnership and 6.5% shareholder of the Company"
From The Telegraph last month:
"Browning West was founded by Usman Nabi, an activist who masterminded a boardroom coup at one of the world's biggest mattress companies..." |
Market report:
......Domino's Pizza, on the other hand, rose 1.7 per cent, or 4.9p, to 289.5p after it attracted its own American activist.
California-based hedge fund Browning West has taken a 5.33 per cent slice of Domino's, worth £70million. |
Thanks for your contribution fraz |
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