PETS is now at an entry point.

Used to own the stock back in Jan.  Sold the stock by EOM Mar for profit.  It's now time to jump back in.

Current Ratio 5-1.

Solid Balance Sheet and Income Statement.

Online Vet Supplies - B2C Focus with some wholesaling.  Company looking to increase B2C focus and decrease wholesale focus.

- Bill

Bill, I agree.  Pets has one of the strongest balance sheets and lowest P/E ratios that I have seen in a long time.  I also like the low number of O/S and the fact that the company could very easily pay all outstanding debt with cash on hand.

What is very surprising here is that PETS is trading very near it's 52 week low.

This morning I picked up 200 shares @ 9.63 just after posting this.

PETS is truly a remarkable company.

I spoke with one of my coworkers and he noted that he is a subscriber and even with shipping costs included he still saved over $10 on a single order.  

Further, I used to integrate automated, complex computerized shipping systems for the Vet and Medical Pharmacy Industry.  They have the single lowest operating costs for supply distribution in the industry.  Their barriers to entry can be quite significant as well.  This creates an economic moat around these companies.  

They use RFID technology to fill pick/pack bins that follow automated rolling tracks.  As an order traverses the track and nears a particular med station an RFID receiver detects the bin, containing the med bottles, and pushes the bin off the track to the loading station.  Once completed, the station operator places the bin back on the track where it continues moving to the final stations where pharmacists certify the bin content based on computer image/drug comparison (look, quantity, order size, etc.).  Meeting approval of the pharmacist, the bin is placed back on the track and it moves to the shipping stations where initial order information appears on a computer screen, packages are containerized, weighed, and shipping labels applied.  

1-800-PetMeds uses TV advertising to create demand and it certainly works.  They use TV ads for company and brand awareness and the number of subscribers continues to increase.  While TV ad placements continue to decrease I envision that PETS will move to increased use of Google and other online ads to increase brand awareness.

As long as there is an emotional connection for keeping your fifi healthy there will be Pharmacy services like PETS that fulfill this need.

Press Releases
http://www.1800petmeds.com/company.asp?con=pressroom

Testimonials
http://www.1800petmeds.com/testimonials.asp

- Bill

As expected, the stock is already starting to climb.

The stock really starts taking off toward late December when consumers start bulking up on prescription Heartworm medication through the months of January to EOM March 07.

-Bill

Geopolitical concerns

While PETS has several outstanding quarterly and annual balance sheets and income statements, geopolitical events could unravel the market rally as consumers turn pessimistic.

Not to worry.  One of the virtues of value investing is the companies with strong balance sheets are able to weather these types of events as opposed to those who can barely pay their monthly bills.

- Bill

Today is a good day for PETS.

Bought 500 shares at an average price of 9.82/sh up 1.39 to 11.21/sh a little over 14% gain in about a week.

- Bill

PETS is moving!

While it pulled back to 10.80 this is a good sign for investors wishing to jump in on a solid stock.  While the one year target is set at 16.00 PETS will continue to grow to 19-20/sh by EOM Mar 07.

- Bill

From the motley crew at the Motley Fool they call PETS a multi-bagger.

"It's said that history never repeats itself, but it sure does come close. Down trends like the one we're seeing now do not necessarily herald the end of a company. Similarly, up trends will not continue unabated. Whether the company you are interested in is a $33 billion giant like Honeywell International (NYSE: HON), a $1.9 billion small cap like Armor Holdings (NYSE: AH), or a $250 million micro cap like PetMedExpress (Nasdaq: PETS), the same rise-and-fall patterns will emerge, but generally they end up, well up. Over the long term, well-chosen companies will help you turn a relatively small investment into a huge fortune."

Source: http://www.fool.com/news/comme.....logvisit=y&npu=y

These guys are dead on with their analysis and I have to agree with them.  I'm a holder as well.

- Bill

I'm just about ready to buy more PETS.

It looked like it was going to breach its support line at the $10.00 mark but went back up.

I'll probably place an order tonight for execution tomorrow AM for 100 more shares.  Its still a great buy in this price range.

- Bill.

Here's a graph of the 1 year track.  The 52 week high was 19.55 and low was 9.63.  

Today its up to 11.75 almost 3 dollars/share with my average purchase price of 9.82/share.

It's still not too late to buy into this super strong profit generator.  I look for an exit point near 18.82/share or a $9.00/sh gain by 03/15/07.  This is about the time when hibernator's come out of their caves and pets too.

This stock is definitely a run away in May (i.e., March) and come back to play again in Aug/Sep time frame.  Good seasonal pattern!

- Bill.

What graphong program do you use?

I use Scottrade.

To open a brokerage account you need $500.  It takes about 2 days from the time the money is deposited for the account to be activated.  $7.00 trades so in total entry/exit on a stock is $14.

For penny stocks and OTCBB stocks it's $7+1/2 of 1% of the value purchased.  They have good tools and good customer service.  For an extra $10/month they'll turn on Level II quotes.

I especially like their charting tools and various studies MACD, RSI, MFI, Volume, EMA, SMA, etc plus various time periods.

I like PETS and I've been a shareholder until Mar 06, exited, now recently bought back in at the 52 week low.  So between now and Mar 07 look for the stock to climb back up to near the 52 week high...then repeat.

How easy is that?

- Bill.

I ahve money to invest right now I just find im doing too much research and am getting to scared about any stocks. Im doing charts and contests and setting up fake accounts but im kind of too paranoid.

I also only use yahoo to view stocks and scotiamcleaod to trade. The buy in and out fees here are $26.95 each time which is so high. I need to find a way to cut back my buy ins as I only have 2500 to invest.

What do you think?

I also live in canada and scottrade is in the states