Sunday share tips: Spectra Systems, Domino's Pizza
Domino's Pizza Group
309.40p
17:15 23/12/24
The Sunday Times's Lucy Tobin spied an opportunity in shares of Domino's Pizza.
FTSE 250
20,419.09
17:09 23/12/24
FTSE 350
4,471.06
17:09 23/12/24
FTSE All-Share
4,428.73
16:44 23/12/24
Spectra Systems Corporation (DI/REGS)
250.00p
16:55 23/12/24
Support Services
10,515.58
17:09 23/12/24
Travel & Leisure
9,170.51
17:09 23/12/24
In particular, she noted that the takeout outfit was due to benefit from Euro 2024 and the attendant boost to marketing spend.
Its growth plans, with 70 new stores planned for 2024, investment in its app and successful trial with Uber Eats were other positives to consider.
Indeed, rival Papa Johns was preparing to close 50 UK stores.
Then there were new chief executive Andrew Rennie's expansion plans and successful track record to take into account.
Included in the former were acquisitions in the UK and overseas.
And as Liberum analysts pointed out, on 16 times earnings the shares were 40% cheaper than listed global Domino's franchises and rivals.
"Domino’s is a highly cash-generative business that has paid out £427 million (£171 million in dividends and £256 million in share buybacks) to investors since March 2021," she said.
"Use its share price dip to tuck in. Buy."
The Financial Mail on Sunday's Midas column tipped shares of Spectra Systems to readers, anticipating an imminent acceleration in the secure transactions technology company's top and bottom lines.
Spectra had grown its profit by nearly 15% annually for about a decade and this year was expected to do so by 22% to $10m.
Meanwhile, brokers saw its sales more than doubling to $45m as a sensor fitting contract began to be felt.
That contract was with Spectra's largest customer.
Central banks used a special powder injected into their bank notes and dedicated sensors to guard against fraud.
Further big growth in profit, sales and dividends were anticipated in 2025 and 2026, Midas added.
The recent acquisition of UK outfit Cartor should add to growth, not least by allowing Spectra to move into the market for plastic banknotes, which is currently dominated by De La Rue and CCL.
"Spectra's technology is known as the last line of defence against those intent on defrauding countries, companies and consumers," said Midas.
"[...] With state-sponsored terrorism on the rise and the world increasingly dangerous, Spectra's technology is likely to be in demand. At £2.17, the shares are a buy."