Get the door... It's Domahogs!

Fellas, fellas, fellas.  What if I told you that you could buy a share of an american legacy for less than the cost of one of their large pizzas?  Even better, what if I told you that their P/E ratio at 5 is lower than it's been in, oh say, forever???  Well get ready - because my 2nd stock pick this quarter is Dominoes Pizza (DPZ - http://finance.google.com/finance?q=NYSE:DPZ).  We're looking at a fast food staple that will be around for at least another 100 years here, it's a franchise that's expanding globally, much like McDonalds, but is much less expensive to own (perfect for the ThetaMutual budget).

Dominoes isn't settling to be just a pizza provider, they are looking to expand into other revenue sources now - and they are taking on Jarod and Subway head on.  We all know how awful Subway is, we've all been victim to a subway sub with 2 slices of turkey on it - it won't be easy, but as they grab market share from Subway they will continue adding to their profits.  If you read some of their recent advertising campaigns you'll see it's no secret who they are after - they blatantly are calling out Subway in them, going as far as to tell people to go out, buy their sub, and if they don't like it better than subway they will refund you their money.

The stock has a 52 week high of $15 and change, and in 2007 was trading in the low $30's.

I propose we look into a position this quarter of about 25% of our dues for investment into Domahogs, with a target price of $12-$13/share within the next 12 months.  I also propose that we set a buy price in the mid to low $4's, rather than buy in at it's current price in the mid $5's.