Domino's Pizza Share Discussion Threads

[johnnypardal] 24/10/2007 12:46

It seems to be in an awful hurry for an early start to year-end rally.

[lob2] 23/10/2007 17:58

One doesn't want to tempt fate but dominos could be starting an uptrend at last. Indieman was right in his view that there is good support in the 200 - 210 range. With analyst presentations and a possible positive trading update just 9 days away, I would expect the bias to be on the buying side. A decisive move above 220 would be encouraging. However, what I really want to see is directors dipping into their own pockets with some share purchases after the closed period between now and what I hope will be an announcmeent on or about 1st November. I was always troubled by timing of the company's purhcases of its own shares. Whilst the purchases in themselves showed confidence, the timing of them indicated a desire to prop up an ailing share price. I think it will need some personal investments by directors to show that the people in the know feel that the company is undervalued.

[m180] 22/10/2007 12:23

Wow All my portfolio showing red for the day, except dominos which is
showing blue !!! Never thought I'd see that day come :o)

[mdj8] 18/10/2007 18:47

I think we may need to step back a little. The main prob that I recall in the recent past was with the running of one of the larger franchises, regarding the owners alleged dishonest and poor treatment of employees. Hemsleys reaction to the issue was basically he was unconcerned and the majority of franchisees did a great job. Obviously he had to balance keeping his main money earner happy against the allegedly affected staff but I personally feel he did a bad job and during interviews did not seem interested in the affected employees welfare. In doing so I feel he underestimated the damage such allegations against one franchisee can do to the overall brand and therefore the whole business, including those franchisees that do treat people fairly. Hemsleys first priority should always be to enhance, protect and support the Brand. Had I been considering opening a Dominos I would now have to think long and hard, about the potential for the actions of another Dominos franchisee to affect my business, which may be the way other potential franchisees are thinking.

In addition I recall problems with securing planning permission for sites they have already acquired.

Finally look at the economy/credit crunch - what comes first paying the mortgage or ordering a Dominos.

All these issues will affect the companys ability to grow. Yes they may have performed well to June which will be shown in the results but the share price needs to reflect the prospects for potential growth, which to me looks substantially less rosy than it did 4 or 5 months ago.

[lob2] 18/10/2007 17:14

Since last February the share price touched around 200p or its equivalent price before the split 4 or 5 times and then bounced up. We are clearly at or close to that key support level. I hear that the company will be doing the rounds of the institutions in a couple of weeks and may well issue a trading update around this time. My sense is that the update will be positive. I think if the directors choose this time also to make some purchases on their own behalf, it may herald the start of a revival. The company's purchases of its own shares clearly did not stabilise the price for long. I think the market will want to see the directors committing their own cash as an indication of where they expect the price to be headed. Whilst I anticipate a bounce from a series of upgrades or reiteration of buy notes from analysts, the share price needs to stabilise in the meantime. A bounce from a lower level than today's will feel a bit flat. The retracement from 300p for a company which is meeting and possibly exceeding expectations is beginning to look overdone. Let's hope for a calmer day tomorrow.

[indieman] 18/10/2007 15:32

Yamm,

It's risen from about 10p 6 year ago to hit 300p. Does that sort of performance continue indefinitely or do shares go backward sometimes?

The price people are prepared to pay for growth is too rich for many after the recent concerns for safety of shares.

[trt] 18/10/2007 15:12

I think there is real danger now the price could fall below the £2.00 level and if there isn't a bounce back to £2.00 showing support, then there is a chance the price could go lower still.

[yam114] 17/10/2007 17:05

Is there a reason for this down trend?
Is there any connection to Domino's USA as I saw last night that their profits where trailing expectations.

[indieman] 17/10/2007 16:47

Today gave the first downtick in the 200day EMA, the long term trend.

[mitzis] 17/10/2007 08:52

back to where it began the year..

[indieman] 17/10/2007 08:49

The answer to what comes next seems to be further drops. The price dropped below the long term (200day) EMA which supported it for a long time through August and much of September and has failed to return above it.

There is good support at 210-200p and moderate support at just under 180p. Incidently, RTN shows a similar but delayed and less extreme pattern.

[clarky5150] 17/10/2007 08:37

erm.. 215.

[vassily] 16/10/2007 22:34

Yikes! Now below 220p.
Where to next?

[trt] 09/10/2007 20:32

I was thinking of buying back in but after the Chancellor's announcement on CGT I don't think I will.Its quite possible that Nigel Wray will now start to reduce his holding in DOM to benefit from the current 10% CGT rate / taper relief before it is abolished and replaced with a flat 18% tax rate in April 2008.

In fact all investments in AIM have suddenly become or certainly will become less attractive from April next year.

Other investments, for example in FTSE 100 companies have become more attractive as the CGT rate after deducting CGT allowance ( currently £9200 pa ) will effectively be cut from 40% to 18%

[indieman] 05/10/2007 07:19

We have got to a fairly critical time for DOM, certainly.

The 200day EMA is pretty well flat and the share price is sitting just above fairly weak 220p support. There is plenty of sporadic volume still, and it could go either way, but I still think down is more likely in the medium term.

The trend to size and quality continues as people reduce their risk appetite. And no, I'm not saying anything about DOM as a quality company, just about perceptions and those are what count.

[lob2] 04/10/2007 19:52

Altium Capital reiterated a BUY recommendantion on Dominos today with an unchanged price target of 335 pence. I think a number of brokers will follow suit over the next few weeks and that the tide may at last be about to turn in a positive direction. The company is doing well and its prosepcts are great. The decline in its share price has, as much as anything, been linked to a downturn in the sector. However, the sector as a whole is looking oversold and I would have thought that the conditions are now right for a rebound. Here is the link to the broker recommendations:

[indieman] 02/10/2007 07:49

But it's not doing much to support the share price.

[hybrasil] 02/10/2007 07:38

£5.5million now spent on the share buy back

[indieman] 01/10/2007 07:12

The chart shows DOM sitting just above 220p support. This is actually pretty weak; strongish volume support kicks in around 210p. If that fails, it would probably be wise to consider that when low yield, high P/E growth stocks go out of favour, they do so in a big way.

A P/E target of, say, 25 might tempt people back.

[diogenesj] 29/9/2007 14:21

Thanks for that, giddygoat. Sounds rather grim.

[giddygoat] 29/9/2007 01:13

The Newsnight piece put Domino in a very poor light.

First guy who worked 2 weeks earned a total after deductions of minus £100!
The suggestions that the co is not trying to discourage franchises paying folks less than minimum wage via deductions.

At this point I was still on the Co's side in that these could be isolated cases down to individual franchises but the interviewed Twonk from Domino did nothing to show that he thought this was wrong just repeating Domino were in the clear. Poor show IMO.

[diogenesj] 28/9/2007 09:41

Received an email from the company today (I expect lots of you got it) denying the allegations (and thus drawing my attention to them, because I didn't see the programme):

Dear Sir / Madam

The suggestion that these unproven allegations are representative of working life at Domino's Pizza is absolutely untrue. In spite of the union's intensive efforts to lobby Domino's Pizza employees, and the high profile awareness generated around a small number of local grievances, there is no evidence to suggest a widespread problem within our 12,000 strong team across the UK and Ireland.

An investigation into the majority of these allegations was completed some weeks ago and we have found no evidence to support them. More recently, new allegations have been brought to our attention by a BBC journalist. These will be thoroughly investigated once we, or our franchisees, receive full and formal notification of the allegations direct from the individuals concerned or the union representing them. To date we have received only piecemeal e-mail correspondence from the BBC pertaining to these allegations. If we find evidence that any of the allegations are true, we will not hesitate to take immediate and decisive action.

We accept that some franchisees need to improve the clarity of their HR paperwork and communication with employees. A lack of such clarity would appear to have been the root cause of these local issues. To that end, considerable time has been invested in producing a comprehensive set of pro-forma documents which will be made available to all franchisees. These documents have been submitted for review by experts in the fields of HR and franchising.

To view a video of Chris Moore, Deputy Chief Executive of Domino's Pizza, talking about this issue, please click this link

For more information, contact Bernadette Ahmed, 07909 928016/Lynda Redington, 07946 355547