This afternoon the Domino's Pizza Enterprises Ltd (ASX: DMP) share price dropped 2.1% to $43.46 despite the franchisor of pizza delivery stores releasing no news to the market.
According to ASIC's daily report more than 12% of Domino's shares on issue have been sold short by speculators betting that its share price may have have further to fall despite it giving up more than 43% over the past year.
The stock is now near a 52-week low once again and at $43.46 sells for around 29x trailing earnings which suggests investors are expecting it to deliver on guidance for net profit growth around 20% over FY 2018. Over the year ahead it expects same-store sales growth of 7%-9% in ANZ and 5%-7% in Europe, although it faces increased competition from digital takeaway aggregators such as Menulog, Deliveroo and Foodora.
