The Domino’s Pizza (ASX:DMP) share price has jumped $3.11 or almost 6 per cent higher to $55.10 in Thursday afternoon trading.
The Domino’s share price had fallen as much as 12 per cent after reporting results on Tuesday, its shares trading as low as $45.52.
To the surprise of absolutely no-one, despite delivering a record profit and an increased dividend, Domino’s full year results missed expectations.
“Domino’s Pizza Enterprises delivers a miss with the lot,” wrote The Australian Financial Review.
Fast forward to today, and from Tuesday’s low, Domino’s shares have jumped 21 per cent higher. It’s a miraculous recovery.
On Tuesday, I said the Domino’s Pizza share price may easily double from here, although i did say I’d prefer an entry price of around $40.
A lot can change, and lately Domino’s have been in a nasty habit of missing expectations, but $40 seems light years away now.
On the bright side, at least I’m not short the company. Domino’s has has been one of the most heavily shorted stocks in the Australian market.
This share price rally will be squeezing the life out of the short sellers.