PetMed Express, Inc. (PETS)

Lost cost, low overhead catagory killer with a nice dividend. Potential takeover target as it would be easier to buy this company (with #1 branding) than start your own in a fragmented market>

PETS (1-800-PetMeds)
This is Americas largest Pet Pharmacy. The research I've done in the past (while as an analyst on the Summit Investment Fund) has lead me to be a perma-bull on the future how much growth there is to still be had in the amount we spend on our pets. This website where people can easily order all the pet medications, supplements, food, and whatever else they may need for their pets. This company is having great growth as they have increased revenues from $162 million in 2007, up to $219 million this year. Valuation wise this is quite attractive as this stable, recession proof company trades at 14 times trailing earnings and 12 times next years estimates. AND, once again, this overstates the true price you are paying because the company has $0 debt, and $56 million in cash. They've already proven investor friendly by upping their cash dividend, and I would expect with their huge cash hoard and stable earnings, that this dividend will increase further yet in the future.

Technically this stock is also trading at a very attractive level right now too. Take a look at a 10 year chart, and from 2001 on, you can draw a very consistent support trendline on the chart. The substantial pull-back over the past two weeks brings the stock right back to this trendline (which also matches up on a one year chart).

RK