1-800-PETMEDS (PETS)

[John S.]

All transactions this year have been SELLS. Over $10,000,000 in June alone seems like plenty to me. No insider purchases at all this year. Am I missing something? Regardless, do you feel PETS is wonderful enough to purchase if the 50 day MA is reached. All the numbers seem to be good, but there seems to be some doubt based on recent articles. What is your feeling. I am new at this. You may know more .

[mose]

Originally Posted by John S.

If the MA drops away from the 50, the choice becomes easy...but what if it passes it. Do we buy?

That's always the question, and, unfortunately, we never know for sure. However, we can have some confidence in our decision (if you don't have confidence, don't buy). Let's assume that you have done all of your homework (4 M's, Big 5, etc.), and PETS looks like a great buy.

Three other things you should check are that institutional ownership is 50% or more, the average volume is 500,000 or more and you are buying with the market. If something is fishy with a business, the big guys in charge of the large funds are going to smell it, first, (they have sensitive noses) and start moving for the door. Part of the success of Rule #1 is paying attention to the ripples in the pool as the big guys make their move. The indicators tell us what's happening. We're going to be the jackrabbit and high-tail it out of there while the big, lumbering elephant funds work up speed to depart. How is that for a selection of allegories? :)

We want a large average volume so that there is enough liquidity for us to sell our stock when we want. If there aren't enough active buyers and sellers, we may be stuck waiting for someone to buy our stock while we watch it drop like a brick.

We want to buy with the market/industry/sector when it is in an uptrend. "The trend is your friend." If you buy when the market is going against you, the little upswing in your favorite stock is probably going to be short-lived. That's because big funds tend to invest in a sector rather than just an individual company. They have too much money to invest and have to spread it around. Consequently, if the industry or sector is headed down, they will probably be pulling out of your business shortly.

Can you buy stock without doing all of this checking? Sure, but if you are doing Rule #1 investing, then you need to get all of the details so that you can make an educated decision and be confident that you won't lose money. This isn't a guarantee, of course. Bad things can still happen, but even if they do, we still have an excellent chance of getting out quickly with minor scrapes and bruises rather than huge, gaping wounds. :roll:

mose

[tmpollard]

Hey All,
Question 1
Just wondering what the group thinks about PetMed Express Inc,?
According to the program auto_advfn103 the current price is $12.26 and the MOS price is $12.81. Do you all feel it is in buy territory when all 3 signals say go?

Question 2
I am confused about which of the excel spreadsheets to use. This is what I have on my computer.
auto_msn208
auto_qd20
auto_advfn103
auto_msn_personal22
What is everyone else using? and, is there one of these that will give me the correct information without looking at the other and getting confused about which one is right? thanks for all your help.

[allen]

The MSN sheet gives it a sticker of 12.53, so it appears (at first) essentially priced at sticker. This assumes a growth rate of 21.5% (analyst's rate, which is lower than equity growth rate), and 10-yr average PE of 13. I don't know what AdvFn is using. The 10-yr average PE may be low, because it includes a couple years of negative earnings. So I might consider going with a PE of 22 (5-year average=current PE), which would give sticker 20.97, MOS 10.48. But I'd call it a risky biz, because you don't have 9-10 years of data, and only the last 5 have been profitable.

[npg]

If it doesn't jump out as a fantastic opportunity then it's too close to call and I would not recommend investing in it.

A good investment is one where you are comfortable enough not to care about the technical indicators because you know that you will get an above average compounded return over a timespan of 5 - 10 years. That should suffice for starters.

True, you can leverage the upside even more with technical trading, but you better be comfortable interpreting that data. Otherwise you will regret jumping off the bus and discover that the bus drove off without you and you find it hard getting on it again. Make sure you buy the right ticket before you get on. An investment or a trade ticket. And don't change ticket midway. It'll get you a fine.

[goelzgroup]

My wife is a Veterinarian on the national board. The drugs from this company can be different quality from the selected companies Vets use, IE Wyeth , Fort Dodge. Vets as a whole are not recommended them if you are concerned with your pets. Doctors are getting significant reaction appointments from drugs coming from PETS. Good for them, Bad for the pets. Doctors typically don not make money on redistribution of the drugs but do on the advice given. If you love your pet saving pennies doesn't make sense.

[jkruer01]

Originally Posted by goelzgroup

My wife is a Veterinarian on the national board. The drugs from this company can be different quality from the selected companies Vets use, IE Wyeth , Fort Dodge. Vets as a whole are not recommended them if you are concerned with your pets. Doctors are getting significant reaction appointments from drugs coming from PETS. Good for them, Bad for the pets. Doctors typically don not make money on redistribution of the drugs but do on the advice given. If you love your pet saving pennies doesn't make sense.

Hmm...a Vet telling you to buy drugs through them instead of online...SHOCKING!!

Isn't this kind of like a Merril Lynch broker telling you to invest with him instead of on your own???

[tbarker@petmeds.com]

The post I am responding to is incorrect. As a licensed pharmacy, 1-800-PetMeds only dispenses U.S. FDA/ EPA approved medications (the same exact medications sold by your veterinarian). If anyone has any questions they can go to 1800PetMeds.com - America's Pet Medication and Pet Health Resource or call 1-800-738-6337.

Trever Barker

[tbarker@petmeds.com]

I first wanted to respond to the "Doctors typically don not make money on redistribution of the drugs". Then I thought, let the consumer be the judge of that. Secondly, "vets as whole", is not true. We work with thousands of vets daily. The ones that give us a difficult time in obtaining authorization for pets feel that they are in direct competition with PetMeds. They aren’t thinking of the pet, only themselves. The fact is we do not want to be in any competition with a vet as I am sure a consumer would not want to be caught in a tug of war with their own Dr. and their pharmacy for their medication! For more about 1-800-PetMeds go to About us.

Trever Barker

Originally Posted by goelzgroup

My wife is a Veterinarian on the national board. The drugs from this company can be different quality from the selected companies Vets use, IE Wyeth , Fort Dodge. Vets as a whole are not recommended them if you are concerned with your pets. Doctors are getting significant reaction appointments from drugs coming from PETS. Good for them, Bad for the pets. Doctors typically don not make money on redistribution of the drugs but do on the advice given. If you love your pet saving pennies doesn't make sense.

[tbarker@petmeds.com]

I first wanted to respond to the "Doctors typically don not make money on redistribution of the drugs". Then I thought, let the consumer be the judge of that. Secondly, "vets as whole", is not true. We work with thousands of vets daily. The ones that give us a difficult time in obtaining authorization for pets feel that they are in direct competition with PetMeds. They aren’t thinking of the pet, only themselves. The fact is we do not want to be in any competition with a vet as I am sure a consumer would not want to be caught in a tug of war with their own Dr. and their pharmacy for their medication! For more about 1-800-PetMeds go to About us. You are right about one thing; there is a difference in quality. PetMeds medications are the exact same medicines that you would find at your vet, only fresher! They sell much too quickly to be sitting on a shelf for long. That, along with complete customer satisfaction, is guaranteed.

Trever Barker

Originally Posted by goelzgroup

My wife is a Veterinarian on the national board. The drugs from this company can be different quality from the selected companies Vets use, IE Wyeth , Fort Dodge. Vets as a whole are not recommended them if you are concerned with your pets. Doctors are getting significant reaction appointments from drugs coming from PETS. Good for them, Bad for the pets. Doctors typically don not make money on redistribution of the drugs but do on the advice given. If you love your pet saving pennies doesn't make sense.