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Domino Pizzas bought back own shares yesterday

Any other investment discussions eg. peer to peer lending
TheMotorcycleBoy
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Re: Domino Pizzas bought back own shares yesterday

#140909

Postby TheMotorcycleBoy » May 24th, 2018, 9:41 am

I skimmed just the articles, but the gist seemed to be that buybacks could be negative for shareholders, when the money could be better spent on capex. And hence whilst a short-term "quick buck" gain may occur, long-term future growth may be impaired.

So perhaps for an engineering/technology firm the money might be better employed in R&D, and for a retailer perhaps in reducing retail/lease costs.

ADrunkenMarcus
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Re: Domino Pizzas bought back own shares yesterday

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Postby ADrunkenMarcus » August 7th, 2018, 8:33 pm

I'd rather they had bought back shares at today's prices! The latest dividend was increased 8%.

Best wishes

Mark.

TheMotorcycleBoy
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Re: Domino Pizzas bought back own shares yesterday

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Postby TheMotorcycleBoy » August 10th, 2018, 4:41 pm

ADrunkenMarcus wrote:I'd rather they had bought back shares at today's prices! The latest dividend was increased 8%.

Best wishes

Mark.

Yes they are trading pretty low (we bought in March I think we paid ~3.26).

Anyway, any idea for the fall over the past few months? Is it Brexit related?

Matt

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Re: Domino Pizzas bought back own shares yesterday

#158715

Postby ADrunkenMarcus » August 11th, 2018, 10:17 am

Melanie wrote:
ADrunkenMarcus wrote:I'd rather they had bought back shares at today's prices! The latest dividend was increased 8%.

Best wishes

Mark.

Yes they are trading pretty low (we bought in March I think we paid ~3.26).

Anyway, any idea for the fall over the past few months? Is it Brexit related?

Matt


I think press reports about the CEO's allegedly strained relationships with franchisees is part of it. That and concerns about whether they can replicate their great success in the UK and Ireland with international expansion. Then people worry about store splits in the UK (partly why they now call out growth ex-splits). I don't worry too much about these things. I bought in 2010 at 116p (equivalent) and I'm getting over 8% dividend yield on cost with double digit real CAGR in dividends. Growth will slow over time but Domino's has a lot of life in it yet.

Best wishes

Mark.

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Re: Domino Pizzas bought back own shares yesterday

#158717

Postby Aprilfool62 » August 11th, 2018, 10:26 am

Yesterdays Investors Chronicle rates them as a 'sell' - the gist of it seems to be that there was a loss in international business and they are opening fewer stores in the UK than they were projected to.

April


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