Domino's Pizza Share Discussion Threads

[trt] 29/5/2007 17:36

We are going to see a huge rise in end of year profits as they have already said only four months into their financial year that they will exceed market expectations.

The market is prepared to support the share price due to the huge increase in profits during this current growth phase. Like for like sales are soaring and the online platform is performing over and above all expectations.

The increase in the share price over recent months is a reflection of this current growth phase.

The momentum will be sustained ahead of the results as investors will want a piece of the action come the Interim results. The comments from DOM in the accompanying statement will be very positive indeed they can't be anything else having already said they will beat full year expectations.

I am now wondering whether DOM will announce a move to the FTSE 350 market as their market capitalisation would support this. Tracker fund buying would then commence in earnest as these funds are obliged to have a portion of money invested in every company within the index.

[trt] 29/5/2007 14:32

I bought on the dip again this morning at £2.68 - lovely !!!

[soulman08] 29/5/2007 10:14

I KEEP ON BUYING THEY KEEP BRINGING THE PRICE DOWN, ALL THEY WANT IS FOR PUNTERS TO GIVE AWAY THEIR SHARES CHEAPLY, IT SEEMS ITS WORKING. WHEN THIS GOES TO 3.25 SOME OF YOU ARE GOING TO FEEL LIKE PLONKERS

[techmark] 29/5/2007 09:07

trt,

The problem you have is that the market is very much aware of the points you state above, therefore you are going to need even more to drive the shares higher. Expectations keep going up and up until eventually the bar gets set too high. Any disappointment from a company rated so highly will have a serious effect on the share price.

Regards

[trt] 27/5/2007 17:22

Because DOM is in such a dramatic growth phase in terms of profit increases at the moment (lets not forget after only 4 months into their financial year they announced full year profits would be ahead of market expectations - no other listed company has made such an announcement)then the market is prepared to accept a relative high PE ratio.

In 2006 the PE ratio was on average 43 and the market was prepared to accept that rating. However the PE will now fall to under 35 this year and under 30 next year based on current broker forecasts. But of course those forecasts are inaccurate because DOM will exceeed expectations for full year profits and the forecasts will have to be revised upwards bringing the PE even lower.

Profits will smash all broker forecasts by a huge margin and with the online platform in Ireland launched in Feb pushing online sales to a new record for the company as a whole the Interim results will make very pleasent reading indeed.

Share buybacks - increased dividend - special dividend followed by newspaper and share mag tips and substantially increased broker forecasts coming thick and fast I really can't wait 7 weeks !!!!

[indieman] 27/5/2007 15:43

To get sensible, the p/e needs to come down below 30. If that happens through profits increases in the next two years, fine. I won't be waiting on that though.

[trt] 27/5/2007 09:11

The PE will reduce dramatically as the year end results are announced
( exceeding market expectations).Prospects are excellent as we know and the market for take away food will hit £1.9bn by the end of 2008. DOM delivers one in every three pizza's so will take a large chunk of that £1.9bn. They are on track to open at least 50 stores a year moving to an eventually target of 1000 ( currently over 460 stores ).

The market always looks ahead when pricing shares and takes into account expected growth - which in DOM's case is excellent.

The current PEG is only at 1.52 and is, as with the PE, based on historic earnings so there is scope for further rises

[indieman] 27/5/2007 08:26

trt,

I'm still in, so I hope you're right, but momentum has been lost at the moment. Given that we are in new high territory, momentum is all there is.

I dare say the interims etc will be good, but a p/e over 40 is very high. High growth and high p/e is a high wire act.

[trt] 26/5/2007 08:19

Well I think with the results approaching in about 7 weeks time we should see investors continuing to buy ahead of the impressive / unprecedented figures that will be announced.This I believe will maintain the momentum as nobody will want to be left on the sidelines when the news is released.

The broker upgrades / newspaper tips will then come thick and fast prompting further rises in the share price.

[indieman] 26/5/2007 05:22

So much for the flag. We can forget 315p as a near-term target and look toward a retest of the ca. 260p support instead.

[sam66] 22/5/2007 12:58

Much better thanks Cambium ;)

[trt] 22/5/2007 10:11

delphiman,

Sorry - but does Vodafone sell pizza's ?

[cambium] 22/5/2007 09:33

more wiggly blue lines then!

[trt] 22/5/2007 09:31

Absolutely - with full year profits now exceeding market expectations the Interims will give us the first clue as to how much those profits will exceed expectations.

I would suggest significantly exceed otherwise they wouldn't have bothered to make such a statement after only four months into the financial year.

We should be able to look forward to a bumper increase in the Interim dividend and possibly a special dividend as well and I expect further share buybacks.

Fill your boots now before the rush as everyone will want a piece of the action as we get nearer and nearer to those results !!!

[cambium] 22/5/2007 09:26

Roll on 23 July 2007

[trt] 22/5/2007 09:23

RNS Number:9796W
Domino's Pizza UK & IRL PLC
22 May 2007



For Immediate Release

22 May 2006

DOMINO'S PIZZA UK & IRL plc

NOTIFICATION OF INTERIM RESULTS

Domino's Pizza will be announcing its interim results for the 26 weeks ended 1
July on 23 July 2007.
- Ends -

For further information, please contact:

Domino's Pizza:
Lee Ginsberg - Finance Director 01908 580611

Hogarth Partnership Limited:
Fiona Noblet, Anthony Arthur 020 7357 9477

[cambium] 22/5/2007 08:02

yep no probs ;o)

[sam66] 21/5/2007 15:31

Could you draw the wiggly blue line above the red one please? (every day) thanks ;)

[trt] 21/5/2007 15:27

Cambium,

Yes - many thanks

[indieman] 21/5/2007 13:23

Cambium,

Thanks.

[cambium] 21/5/2007 10:45

Hope thats OK for everyone

[trt] 21/5/2007 10:37

I feel a wee top up coming on !!!!