Domino's Pizza, Premier Foods & Diamondcorp
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“The FTSE 100 is down 0.4% to 7,042.33 after weak trading in US and Asian markets overnight and as sterling recovers some ground,' says AJ Bell Investment Director Russ Mould.
“Pizza delivery firm Domino's Pizza is down 1.8% at 366p despite serving up a perfectly respectable set of third quarter results. Tough comparatives with a stellar second half of 2015 and a demanding price to earnings ratio upwards of 25 times help account for the fall.”
“Food producer Premier Foods shares fell 9.6% to 47.25p as it revealed unseasonably warm temperatures hit September trading. Blaming the weather is never a great look and although the company says it is on track to hit full year expectations, despite a 1.8% sales drop for the first half as a whole, it typically pays to be wary of situations where a stronger second half is required to make the numbers.
“A halving of small cap diamond miner Diamondcorp's share price shows the perils of investing in resource plays. Constraints on its operations in South Africa have created a cash flow problem and the company is now scrambling to secure a £500,000 lending facility in order to continue as a going concern in the near-term and with a further £2.5m to £3m required to fund operations through to commercial production.”
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