Domino's Pizza Share Discussion Threads

[lob2] 18/10/2007 16:14

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 14:32

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 14:12

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 16:05

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 15:47

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

[mitzis] 17/10/2007 07:52

back to where it began the year..

[indieman] 17/10/2007 07:49

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 07:37

erm.. 215.

[vassily] 16/10/2007 21:34

Yikes! Now below 220p.
Where to next?

[trt] 09/10/2007 19:32

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 06:19

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 18:52

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 06:49

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

[hybrasil] 02/10/2007 06:38

£5.5million now spent on the share buy back

[indieman] 01/10/2007 06:12

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 13:21

Thanks for that, giddygoat. Sounds rather grim.

[giddygoat] 29/9/2007 00:13

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 08:41

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

[indieman] 28/9/2007 06:48

Excuse my ignorance, but I thought most of the Domino's in the UK were franchise operations.

[gotterdammerung] 27/9/2007 22:03

Newsnight Report show what a dodgy company this really is. Looks like they will have a whopping great fine heading their way.

Discusting Business practice

[groin] 27/9/2007 22:00

Having just seen how this company makes it profits grow at such a fantastic rate on the Newsnight programme tonight; I am glad I don't hold the shares.
Where did they get their strategy for ripping off their employees to extent that they do? Bradly Hardacre in the 80's series BRASS would be truely proud of them!
It is a shame that they have to do business in this way as their pizzas have always tasted so nice, but now I think the bitter after taste will be too much for anymore.

[indieman] 25/9/2007 21:48

Content yourself that we were right. At least 220p held today which may be some consolation for any bulls remaining.

[techmark] 25/9/2007 14:50

Not surprised to see the fall. Anybody that read my posts over the last few months will know why it has fallen. When it was at 280-300p, it was ridiculously overvalued and ripe for a correction, unfortunately very few people wanted to listen to me back then.

[latifs100] 25/9/2007 14:12

220 now.. why the fall?