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and 8.8% short interest ....
Great update RNS. Should hopefully reverse some of the decline we've seen here of late.
Lets see how share price responds Good growth in volumes in most markets On subject of share repurchase it reduces number of shares in issue which means remaining shareholders own more of future earnings. It also acts as a floor for share price and demonstrates strength of free cash flow.
So how does this share buy back works? So from the time company announces a buy back program, do they continuously buy shares on hour on hour basis daily till the buy back deadline or they buy them intermittently? What are the market rules regarding this? Do they have to follow a particular pattern or thy can do what they want?
Hemingway, it does not have to make sense or stack up. On the first day of buy back the share price shot up but they only purchased a couple of thousand pounds worth. The buy back may be a catalyst for the shorters to buy their shares back, or maybe they will sell more and take a bigger risk. Nothing matters except the opportunity for a select few to make a killing. Meanwhile, we can sit back and pick a few crumbs up. As you said, nothing much has changed since before the buyback, but likewise, nothing much has changed to prompt a drop from 3.25 to 2.55 a few months back. We all take a hit while others profit, and sometimes they allow us to get back what we have lost.
Hi Ftsemajor and others, thank you for the replies. I now understand the theory for why the price might change, but the theory doesnt quite feel substantial enough for me. If the theory were true, the price would change in proportion to the number of shares bought, which it hasn't as you pointed out in your other post. The price of the share is determined on what the last trades were, not on the number of shares in existence and wether that number varies. It sounds more like the share price rises because of the theory, rather than anything else. The accounting reasons also don't really stack up to me (although Im not an accountant), as the company is not performing any better than before it purchased shares. All they are doing is writing off a large sum of cash and hoping it is returned to the investor through market sentiment. Funny old world.
Ticking back up nicely again today.
Thank you ohmygod. Makes sense if there are less shares in issue, the remaining are worth more. Wasnt aware it was common practice to cancel the shares after the purchase. I dont recall any mention of this in the RNS, Ill have to read it again!
I hope its for the right reasons http://www.investopedia.com/articles/02/041702.asp
There could be a number of reasons, mainly due to it being oversold some 6 months back. The wet summer has no doubt helped them in the same way it has hurt the pubs. Trading figures will be slipping out. Buying a limited amount of share buy back will scoop up the excess, but no doubt started a bit of a chain reaction with the high level of shorters. A bit like a mexican stand off in reverse, may be better to take your profit now and buy your shorts back than risk them if the price goes above £3. Truth is, nobody knows, especially the experts, £15 million is not a massive amount, the big rise a few days back was on the back of a few thousand buy back anyway, so must be others panicking a bit. Hopefully they will get their fingers burnt in a scramble to buy back their shorts.
I was in my Dominos store last Friday night and there were 12 people in a production line, the phone was ringing off the hook, the delivery drivers were coming and going every few minutes and there was a steady flow of people through the door collecting. Ok, I'm sure it was a busy time but in my mind, it's a gold-mine! They have got it all right with their back office technology and the ordering app is excellent. In my mind they are in great shape. The kids love a brand name and when it comes to pizza, the only one mine and their mates are interested in is....Domino's
Im failing to understand why a buy back scheme would result in such a sharp rise in SP. Im happy to show my inexperience by asking, but an explanation would be useful? Is it because there will be a guaranteed buyer in the market, who will buy at any price within a £15m budget?
Am showing up 6.54% in one day. Nice! Will break 300p again soon with such momentum. Good entry/top-up time.
Really recovering nicely today. Would be great to see this over 300p again.
There was 6.9% short interest in this before the buy back announcement. Should add to the momentum.
FTSE I hope you are right, the 15pence per share drop that I was alluding to was what was experienced a few weeks back when the initial announcement was made. I too would be surprised if the management had taken this decision without a reasonable probability that it would make more profit than leaving them as independant franchises. But very little information except that which you have quoted.
Thanks FTSE. Never certain with Motley Fool predcitions, but think they are right about long term dividend payments, better than ISA rate and share price most likely go one way, even if that is slowly up. This is one product that is just about recession proof, suffering only from increase in upstart companies. Interesting to see what the plan is for London area with new partnership.Nothing released yet as I am aware, just enougth to knock 15pence off share price.
FTSE, or can I call you Matt, where did you get thiese predictions from ?
30% off when you spend £15/€15 or more on pizza online (Expires 31/12/17) "DOMIBETA" in the UK or "BETADOMI" in ROI
With risks rising, competition getting tougher, and franchisee profitability on the decline, a further re-basing of expectations is required. Domino's has taken a hit on sales but it still beats Pizza Hut when it comes to advertising. Domino’s is still behind Pizza Hut on metrics such as value, overall impression and satisfaction. Domino’s is still looking to press ahead with its strategy of boosting profitability by increasing the number of outlets, announcing that it intends to open up to 90 new stores in the UK this year.
If I have interpreted the latest RNS correctly, a share bonus over three years of £400K is what the Chief Financial Officer received for "discharging managerial responsibility". "Oh but we have to pay the going rate to retain high quality staff or they will go elsewhere!" Discharging managerial responsibility is what we all do; it's called doing your job!
11 August 2017 | 07:36am StockMarketWire.com - Domino's Pizza Group has announced the creation of a partnership with its largest franchisee in London. It said that part of the transaction DPG had agreed to pay £24 million to have a 75% stake in a newly formed company whose assets would consist of all the franchisee's operations being 25 existing Domino's stores in London. DPG said the creation of the partnership would enable it to take advantage of the significant growth opportunity in the London area. It said the transaction was subject to final contract, with completion expected in September.
There was a 3:1 share consolidation
Could someone just briefly fill me in. What happened to this share in Jul 2016? Will obviously do my own research before investing but just wanted a quick insight. Also what do holders think is needed for a recovery?