DOMINO'S PIZZA ENTERPRISES LIMITED - ASX: DMP

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ASX investor profile picture
ShareShack user name hidden until logged in August 17
Here's the list of volume spike trades of interest in today's scan (for trading day ending 16-Aug-2018):

AC8, AJQ, BBN, BRG, BSL, BSX, CAY, COI, DLX, DMP, EDE, FDM, IFM, ILU, IMD, IVC, JBH, KLL, KSL, LCK, MGE, NGI, NST, ORG, PGH, PME, PNV, QBE, RXP, SBM, SPL, SSM, VAH

Personal disclosure - No direct positions thus far in these companies.
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ASX investor profile picture
ShareShack user name hidden until logged in August 15
Hi all. I've got access to some broker reports, so thought I'd let you know what their views are on IAG and Dominos

On IAG, the analysts have only provided their first impressions so far. I suspect more considered reports will be released tomorrow.

UBS says that while insurance profits were below their estimates, there were few surprises. They had a neutral recommendation on the stock before the announcement.

Credit Suisse mentioned an earnings miss against their forecast due to lower investment income on shareholder funds and commented that guidance for next year was weak. They also had a neutral rating on the stock before the announcement when the price was over $8.00.

On DMP, Credit Suisse has an underperform rating with a price target of $35.93 because of slowing same store sales in Europe and in France in particular. However, they acknowledge that whilst slowing same store sales is a reason to be bearish, there is arguably a bullish argument for the stock: DMP's guidance for store roll outs in FY 19 is almost double what they rolled out in FY 18. That may be why the price bounced today?
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ASX investor profile picture
ShareShack user name hidden until logged in August 15
Here's the list of volume spike trades of interest in today's scan (for trading day ending 14-Aug-2018):

BBN, BKW, BLX, CAS, CE1, CGF, COH, CVN, DMP, KDR, LVT, NHF, NWS, PPE, SWM, ZEN

Personal disclosure - No direct positions thus far in these companies.
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ShareShack user name hidden until logged in August 14
Just checked out Dominos’ FY18 result presentation. Looks like the sales growth they’ve achieved has underperformed the guildance they gave to the market substantially.

I think this is going to get smashed today then it trades on a p/e multiple of around 35x. I’ll be reviewing this to see whether it becomes a buying opportunity at any point.
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ShareShack user name hidden until logged in July 05
Dominos Pizza shares were down over 9% today. Another example of the price falling despite no announcement from the company, but rather due to broker reports being released which downgraded the stock to a sell.

In this case the reports were released by Citi and Credit Suisse. Over the last week, we’ve seen Magellan Financial and AfterPays share prices react materially to reports from Morgan Stanley and Goldman.

These guys have the power to move the market. No wonder why they make so much money!!

Nevertheless, the reasons Dominos was downgraded make a lot of sense. It was trading on a p/e well north of 30x and has a lot of headwinds facing is business. All outlined very well in the article below which explains why the price dropped 9% today.

Potentially a shorting opportunity as it’s p/e multiple continues to compress to be reflective of a lower growth company...

https://www.smh.com.au/business/companies/domino-s-double-dip-heralds-perfect-storm-for-pizza-chain-20180705-p4zpqa.html
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ShareShack user name hidden until logged in June 12
This article in today’s AFR explains a lot why Dominos might be so heavily shorted.

Trading on a p/e multiple of more than 40x means it is priced as a very high growth stock.

However, the last two times it has reported to the market, Dominos growth has come in below market expectations.

Joe Aston, who writes the Rear Window column at the back of the AFR, believes this is going to happen a third time at the FY 30 June 18 result.

Rear Window is basically the AFR’s gossip column. While it’s objective is to sensationalise, it does occasionally turn up stuff that is more than just rumour.

http://www.afr.com/brand/rear-window/dominos-guidance-world-cup-bonanza-or-don-meij-is-bust-20180611-h1182f?btis
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ShareShack user name hidden until logged in May 28
Dominos is one of, if not the most shorted stock on the ASX at the moment.

I thought this was because of the investigation into the franchising sector that’s soon to commence, but what's also a risk is their pizzas being so unhealthy in a world which is becoming more aware about the importance of eating well.

This article in today’s SMH says Dominios pizza is the unhealthiest of all the fast food chains they assessed:

https://www.smh.com.au/national/nsw/3-100-the-fast-food-company-with-the-worst-health-score-20180527-p4zhrw.html
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ASX investor profile picture
ShareShack user name hidden until logged in April 28
I am wondering whether or not to buy some shares in Dominos Pizza. The shares have been as high as $80 a few years ago, but are at $43 at the moment. They have fallen because some of their franchisees were found to be underpaying workers, and because of the perceived threat from UberEats. I also think the Retail Food Group scandal may have hurt sentiment in them as well. I reckon they could be a good buy though because they are growing like crazy in Europe and are continuing to deliver strong same store sales growth and looking for more acquisitions. They seem to be incredibly innovative with their product and digital strategy and financially have great margins, a high return on invested capital, over 20% EPS growth and a strong balance sheet. I thought their half year result presentation showed a very strong, well managed business.

https://www.dominos.com.au/media/91134/180214_hy_market_presentation_2.pdf

Its interesting as well that Dominos in America, which is the owner of the Dominos brand, is one of the top performing companies in share price appreciation over the last 8 years. Returned even more than Amazon. So, the Dominos business model is obviously working very well around the world.

http://markets.businessinsider.com/news/stocks/dominos-pizza-stock-price-ceo-finishes-with-a-bang-2018-4-1022578700
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