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London South East - Oil & Gas Investor Evening: Malcy, Echo, Savannah, SDX
Andrew Knott, #SAVP speaks at London South East's Oil & Gas event


Dp Eurasia Share Price (DPEU)



Share Price Information for Dp Eurasia (DPEU)


Share Price: 101.20Bid: 102.60Ask: 104.80Change: 7.00 (+7.43%)Riser - Dp Eurasia
Spread: 2.20Spread as %: 2.14%Open: 98.70High: 102.60Low: 98.10Yesterday’s Close: 94.20

Dp Eurasia N.v. Ord Eur0.12 (Di)

Dp Eurasia is part of the Tourism and Leisure sector






Share Price SpacerPrice
101.20
Share Price SpacerBid
102.60
Share Price SpacerAsk
104.80
Share Price SpacerChange
7.43%7.00
Share Price SpacerVolume
61,347
Share Price SpacerOpen
98.70
Share Price SpacerHigh
102.60
Share Price SpacerLow
98.10
Share Price SpacerClose
94.20
Share Price SpacerCurrency
GBX


Currency Issue Country Shares in Issue Market Capitalisation Market Size
GBX GB 145.37m £147.12m 3,000

52 Week High 240.00 52 Week High Date 17-JAN-2018
52 Week Low 74.60 52 Week Low Date 11-OCT-2018

# Trades Vol. Sold Vol. Bought PE Ratio Earnings Dividend Yield
38 39,180 22,167 85.699 1.18 0.00 0.00


London South East Users info for Dp Eurasia




Date
Time
Trade Prc
Volume
Buy/Sell
Bid
Ask
Value
 

22-Oct-18
17:23:06
101.19
3,000
Sell* 
102.60
104.80
3,036
Trade Type:
Ordinary

22-Oct-18
17:23:02
99.974
2,177
Sell* 
102.60
104.80
2,176
Trade Type:
Ordinary

22-Oct-18
16:35:07
101.20
12,612
Sell* 
102.60
104.80
12.76k
UT 
Trade Type:
Uncrossing Trade




View more Dp Eurasia trades >>

Directors Deals for Dp Eurasia (DPEU)
Trade DateActionNotifierPriceCurrencyAmountHolding
28-Jun-17Notification of Holding
Trade Notifier Information for DP Eurasia N.V. (DI)
Aslan Saranga held the position of CEO at DP Eurasia N.V. (DI) at the time of this trade.
 Aslan Saranga
007106310
View more Dp Eurasia directors dealings >>


Peterson
Posts: 26
Opinion:No Opinion
Price:86.50
RE: My concerns
13 Sep '18
Hi luckyinvest. Congrats on making your first post! I am also new to this but I find it's interesting to brainstorm and I find there is nothing like putting your thoughts down on paper to help formulate an investment decision. You raise some very salient points.
1. Re. inflation. No doubt a major concern as is the whole macroeconomic situation. They do say in their results (and underlined on the earnings call) that "we are offsetting the impact of higher inflation by increasing our prices more frequently without any discernible negative impact on volumes". And in order to try and preserve margins they are closely managing costs. Latter are no doubt rising in price too but it's important that their ingredients are locally sourced so there is no additional FX risk. Given pizza is a relatively accessible product, they have 50%+ market share, strong execution, etc, the key point is that whilst the crisis undoubtedly brings short term headwinds they actually have the chance to gain market share at the expense of their weaker competitors
2. Russia. I think the crucial point here is that when entering new markets the key objective is to win market share and develop a strong customer relationship. If you can get new customers to try you once and they like the product the hope is that they come back again and again. This is a common fast food strategy (and not just fast food) worldwide. If you look at other Domino's markets there is a loss making period for every store, which is factored into the business plan, which includes extreme promotions to drive footfall.

I strongly disagree that DPEU is a value trap. If the picture were as bleak as you portray there wouldn't be a single western fast food brand in any emerging market. Why is McDonalds in 119 countries and not just in developed nations? Because they have a strong brand, super slick execution, pricing power in times of economic turbulence, etc, etc. And EM brings the attraction of a growing middle class (on a mid to long term view) who still look at going to Mcdonalds or Dominos as aspirational. Then again I am for the most part an ultra long term investor and not a trader. Also I invest in businesses not share prices. There is a frequent disconnect between price and intrinsic value sometimes in your favour and sometimes not. Frankly I couldn't care less what happens to the DPEU share price in the ST. What matters is that the business continues to expand so that it positions itself as best it can for economic normaliasation as and when it comes. Now you may think that Turkey / Russia are the next Venezuela. I really don't think so. But I don't disagree it's a super risky one. And not a share I would attempt to "trade". But if you have a 5 year time horizon I think this makes for a very interesting entry point. Good luck with your decision!
cuddothisnow
Posts: 1,651
Premium Chat Member
Opinion:No Opinion
Price:87.80
RE: My concerns
13 Sep '18
Agreed,
I am out at a loss of 1K.
Care not now if it moves up 30%.
Why - busy making elsewhere.
luckyinvest
Posts: 2
Opinion:No Opinion
Price:87.80
My concerns
13 Sep '18
First ever post. Been following this one. Here are my concerns (and grateful for people's views).
1. While it seems impressive that Turkey posted 10.9% LFL revenue. It's less so in the context of runaway inflation (now estimated at 100% pa) - see CNBC article.
https://www.cnbc.com/2018/08/14/turkey-annual-inflation-rate-is-running-at-an-estimated-101-percent.html
When one account for things on a real instead of nominal basis, the picture isn't rosy.
On the ground in Turkey (I don't know about Russia), the DP stores in central areas are busy (probably foreign tourists given Lira may help). But the DP stores in non-prime locations certainly not as busy.
2. Given Russia is a start-up, they seem to be chasing sales at any cost. See CNBC article (giving away pizzas).
https://www.cnbc.com/2018/09/11/dominos-free-pizza-gimmick-goes-awry-after-too-many-people-get-tattoos.html
The above 2 points show up in decreasing GP% and operating profit%. Competition is high in a poor economic environment. Operating losses have increased.
So while on a store basis, EV/store is cheap, it feels like a a value trap. Particularly on the bottom line with widening losses.
So the fast growth is coming at a cost. But are they really truly as profitable as they are in the West without all these loss-making promotions.

btw, I'm not invested as yet (buy or short).
Peterson
Posts: 26
Opinion:Strong Buy
Price:90.00
Reassuring!!! - PART 2
11 Sep '18
3. We have confirmation that EUR debt has been fully refi'ed. "no hard currency left in the Group". Rouble loan is nicely aligned with the growing importance of RUB revenue
4. Nice commentary from CEO that costs are being tightly managed and "Historically, the business has been relatively robust in challenging economic conditions and we continue to monitor the situation closely given the uncertain short term outlook. This is my third such experience at the helm of DP Eurasia during a difficult macroeconomic environment in Turkey and on each previous occasion we have come through stronger relative to the competition due to our market leadership position, focus on value and service to the customer and resilient franchise partners."
4. Brokers have updated their target prices to 130p (down from 300p but a significant positive delta from today's SP).
5. On a per store basis of roughly £225K per store DPEU is now by far the cheapest of all the listed Domino's global businesses
So in summary a high risk investment no doubt. But my does the current SP price in a lot of bad news. On a 5 year view and assuming economic / FX normalisation I believe the broker views are deeply conservative and 90p will be seen as as a once in a lifetime entry point. Of course do your own research...
Peterson
Posts: 26
Opinion:Strong Buy
Price:90.00
Reassuring!!! - PART 1
11 Sep '18
Really not bad all things considered and only strengthens my view that this share is deeply oversold, CAVEAT, for those with a long term perspective! I just say that of course because anything can happen in the short term, particularly in the world of Turkish politics / economics. That aside, some interesting data points:
1. Growth strategy remains intact. 700th store will open in late 2018, with the emphasis on Russia / CIS, which are obviously less impacted by the crisis and will help with diversification
2. Board expects full year EBITDA to be in line with expectations
View more share chat for Dp Eurasia (DPEU) >>







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