What Happened to the Domino’s Pizza Share Price?
Shares in Domino’s Pizza Enterprises [ASX: DMP] rose over 20% today. It’s now trading under $33.
Why Did This Happen to Domino’s Pizza Shares?
DMP reported that it’s half year Net Profit after Tax is up 44.2% on the same period last year. Its next dividend to be paid will also rise 39% on the prior comparative period.
Is Domino’s a Buy?
It’s possible the stock will keep rising, but in general you don’t want to buy the stock once the positive earnings announcement is out. The expression ‘if it’s in the news, it’s in the price’ tells you why.
Domino’s stock has been rising strong for some time indicating the market expected good news. I would expect the price to pull back or at least trade around this price, at least in the short term.
Editor, The Daily Reckoning