Finding Shares That Have Been Unfairly Punished

THE WEEK: Morningstar columnist Rodney Hobson is looking for buying opportunities after receiving a pay-out from now unlisted WS Atkins

Rodney Hobson 28 July, 2017 | 11:50AM
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I built up a large holding in the recently delisted WS Atkins, having doubled my original stake, and reinvested the dividends. Now I am on the look out for a new home for the cash I have received post-takeover. In particular, I am looking for shares I feel have been unfairly punished in recent weeks – enter stage left Domino’s Pizza (DOM) at 260p.

It’s hard to believe that Domino’s has fallen by a third, from 390p to 260p in less than four months, including a 7% drop when interims were announced this week. I thought the figures and the outlook were not at all bad.

Sales in the UK and Ireland were up 7.3% in the six months to the end of June and were 10.5% higher overall thanks to expansion in Norway, Sweden and Iceland. Underlying profits rose 9.1%. The interim dividend is increased from 3.5% to 3.75p. The only worry is that expansion has ramped up debt but that should be easily manageable.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Domino's Pizza Group PLC375.40 GBX1.02
National Express Group PLC224.40 GBX3.41

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.