A decent set of numbers from Domino's Pizza (DOM) helps the share price rise 2.6% to 604p. Like-for-like sales grew 4% in the 13 weeks to 29 September. Yet Canaccord analyst Wayne Brown reckons the trading update 'raises even more concerns' about the fast food expert. He doesn't like news that Domino's has lowered its store opening target by 17% for the year. 'In a retail market where new site opportunities should be benefiting the group, and every other retail/leisure company is increasing openings, we are increasingly concerned why DOM is missing its opening targets again,' says the analyst. He says a price to earnings ratio of 27 is too rich for a business that is delivering forecast and balance sheet downgrades and worsening cash flow conversion.
A 7.4% drop in half-year underlying pre-tax profit to £1.47 billion from Tesco(TSCO) paints a gloomy picture of the supermarket giant. The shares are down 3.2% to 347.68p. It has a lot to achieve in the second-half period to win back the market's support, as we discuss in more detail.
Audio chip designer Wolfson Microelectronics (WLF) gets a hammering as Blackberry struggles spark delays to new product launches. Tthe shares fall 13% to 151.75p as Wolfson steers for fourth quarter revenues of $40 million to $50 million. That's down on $57 million market estimates. At least the Edinburgh-based company is showing signs of growing beyond its key customer Samsung, the Korean giant worth 35% of third quarters revenues instead 60% at the interim stage.
Hochschild Mining (HOC) dips 4.2% to 167.1p after announcing plans to raise between $48 million to $96 million to help buy the remaining 40% stakes it doesn't already own in two Peru precious metal mines in a $280 million transaction. The rest of the money is coming from an expanded debt facility. The deal means Hochschild's Crespo project will be delayed, thereby postponing $80 million of outstanding capital expenditure at this asset. Westhouse Securities says today's announcement is a low risk deal, adding: 'Hochschild already manages the assets and knows them intimately - this is less risky than any other acquisition deal or project development that the company could possibly undertake.'
Electrocomponents (ECM) rises 2.4% to 286p after posting 1% underlying sales growth in its first-half period. That's similar to the previous six months. Investors are no doubt focused on PMI manufacturing figures which are good lead indicators for the stock. Figures yesterday showed an improvement in eurozone manufacturing business conditions for the third month in a row.
Homewares retailer Dunelm (DNLM) falls 3.8% to 890.5p on a disappointing trading update. Like-for-like sales in the 13 weeks to 28 September are down 5.3% to £154.3 million. It is blaming the weather for being too hot for shoppers.
East African oil explorer Ophir Energy (OPHR) and its larger peer BG (BG.) are down 4% 318.1p and 0.5% to £11.70 respectively despite positive flow test results from their Pweza-3 appraisal well on Block 4 offshore Tanzania. The well flowed at a rate of 57 million cubic feet a day. The level was constrained by the equipment.
South East Asian oil producer Soco International (SIA) gushes up 2.6% to 408.5p as a appraisal well on its Te Giac Trang field in Vietnam exceeds all expectations. It flowed at more than 27,600 barrels of oil equivalent per day. Read our thoughts on the Soco investment case from July.
Scientific cameras and microscopes specialist Andor Technology (AND:AIM) advances 3% to 379p after seemingly putting past order delays behind it. The Northern-Ireland-based company has a sales team restructuring to thank for 'record' orders and a forecast-beat second half.
Mobile applications developer Mobile Streams (MOS:AIM) eases 2% to 74.5p despite posting 145% revenue growth and tripled profits last year. Investors are clearly still concerned that over £2 million of its £2.8 million net cash is locked up in Argentina, with not chance of repatriation, seemingly forcing the company's hand to concentrate on Latin America.
Development Securities (DSC) slips 2.4% to 200.5p on the potential sale of its stake in Manchester’s Phones 4 U Arena. The value of the deal for the 21,000-capacity property, formerly known as the Manchester Evening News Arena, has not been disclosed. It was bought three years ago from Capital & Regional (CAL) for £62.2 million.
Vascular device maker Lombard Medical Technologies (LMT: AIM) rises 6.5% to 187p as it expands its R&D and manufacturing site in Oxfordshire and is making £600,000 from selling its non-core OEM business in Scotland. The 10,000-square foot extension will be ready early next year to meet US demand for Aorfix, a stent graft to treat neck angulations.