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DMP - DOMINOS PIZZA ENTERPRISES LIMITED


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the sbrookies told us

' it isn't a pizza Co. it is a tech Co. likes of uber" that is why it traded at such high PE.

you be the judge people. i reckon it is over priced---no matter what they call it---tech Co, or what ever!!

 

That's like one of the big 4 saying they are a tech company... (Which one did try)

 

Are they in the game of selling technology? Or the info they gather from that (eg FB to advertisers)? NO!

 

They produce a consumer commodity, and franchise that model, and just happen to use technology faster/better/more advantageous than their peers. At the moment anyway (that's the trouble with become 'innovation focussed' a competitor can seriously dent your market share overnight).

 

High P/E is justifiable??? Not in my little realm. Maybe from a T/A angle there may be value, but all this high P/E rot is doing my sanity in.

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  • 2 months later...

Domino's Pizza Enterprises (DMP) advised that an independent review undertaken by Deloitte

 

of DMP's compliance processes, and a nationwide audit of all stores, is taking longer

 

than anticipated and is not expected to be completed in the next six months.

 

No details were provided as to the cause of the delay.

 

- still in the high 50's, but struggling

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  • 2 months later...

DMP,

is a reminder that every success story peaks eventually

T

he market's savage reaction to Domino's results shows investors will not hesitate to punish companies that fail expectations, even when earnings growth remains in the robust double-digits.

 

Domino's tried to head off some of the pain with a $300 million share buyback and the usual energetic presentation from Meij about the company's plans to dominate the global pizza industry.

 

However, it was not enough to stop the sell down given the concerns around franchisee profitability that emerged after a Fairfax Media investigation earlier this year.

 

It is worth remembering this is hardly a company in trouble. Domino's is still delivering the kind of growth most ASX-listed companies can only dream about in an environment where companies are relying on cost cuts to drive profit growth instead of investing for the future.

 

Meij shows no signs of taking his foot off the accelerator, flagging more acquisitions as he rolls out hundreds of new stores across Europe, Australia, New Zealand and Japan. He continues to talk up the technology story as well with online sales booming and trials of drones that can deliver loads of 3.5 kilograms starting in New Zealand.

 

However, it is a reminder that every success story peaks eventually and rapid growth can come with a cost. Domino's shares had already fallen 20 per cent following a wages scandal that forced Domino's to audit its franchisee network in Australia and New Zealand and concerns about the impact of penalty rates.

 

Domino's has recovered $770,000 in unpaid wages and superannuation following 15 full store audits. It also said it had recovered an additional $249,000 as a result of 55 complaints.​

http://www.theage.com.au/business/markets-...814-gxw89p.html

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The value of Jack Cowin's stake in Domino's Pizza Enterprises has now plunged more than $800 million in a year, following the brutal fall in the company's shares price.

 

Domino' s shares fell more than 20 per cent in early trade after its full-year profit came in under market expectations, and the outlook for the 2018 financial year disappointed the market.

 

More than 12 per cent of Domino's shares were in the hands of short sellers, exaggerating any market falls.

 

Cowin, who is chairman of Domino's, holds his stake through a family trust called Somad Holdings, which owns more than 23 million Domino's shares.

 

The value of the stake fell by $207 million this morning as Domino's shares plunged from $51.11 at Monday's close to $44.10. At that price, Cowin's stake is worth $1.015 billion.

 

It's a far cry from the heady days of August 2016, when a strong earnings report send Domino's shares surging to a high of $80.10. Cowin's stake was worth a stunning $1.8 billion, and it seemed Domino's could do not wrong.

 

But a sharp slowdown in same-store sales in Australia and the apparent end of a slew of big acquisitions, have raised questions about the trajectory for the shares.

 

Meij also announced today that he would be selling shares to fund further share purchases when his options vest, to meet tax bills and to meet his obligations in a matrimonial settlement.

 

He currently holds 2.4 million shares, valued at $105 million. The stake was worth about $192 million this time last year.

http://www.theage.com.au/business/markets-...814-gxw89p.html

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You're welcomed Doc. :)

 

I couldn't see the lofty value either, but I'm sure many made money on the hype, on the way up - hopefully they also took some profits before the music stopped.

 

Recall reading this article last year by James Greenhalgh and I couldn't agree more with his sentiment on DMP. DMP is another example of a stock market darling that has come down to earth with a thud.

 

Domino's Pizza: Absurdly overpriced Every so often a very successful business becomes a hot stock. DominoÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s Pizza is sizzling now but it wonÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢t last.

 

Source: https://www.intelligentinvestor.com.au/domi...rpriced-1805156

 

It was the 8th most shorted stock on Shortman's Top 100 yesterday with over 12% of the stock shorted. Today it's gone back down to 13th position

 

https://www.shortman.com.au/top

 

 

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