PetMed Express, Inc. (PETS)

NO DEBT. high brand recognition. little serious competition and theyre still growing.

High margins, low debt

Gut feeling.

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

Zacks Rank 3-Hold, Recommend Neutral, Industry Rank 47 / 217, Target 18.50, Avg Target of 10 analysts 19.75

Joel Greenblatt Pick

pets.com!

This account tracks the fast-growing shakers and movers and some of the riskier stocks on my watch list.

EV/FCF/G ratio works out to 11.5. Toss in a tidy 2% dividend, and what you've got here is a case for growth, a case for value, *and* a case for income. That makes PetMeds man's new best friend.

internet retail ranked 8th over the last 3 years. This company is now the best in the category in terms of value, growth, profitability and cash flow.

ez money

Strong fundamentals and currently undervalued. I think that spending lots of money on pets is money poorly spent. However, Americans (including my sister) do it, and as long as they are willing to spend the money, then I will own the stock.

strong fundamentals. aging population will want more than a family pet, they want companions. ease of purchasing pet items online will enable this generation to continue care and love for their pet.

Leads the competition in delivering products demanded by consumers tired of paying Vets higher costs.

Scooter's got an inflamed butt cheek and somebody's cashing in!!

5 Star, Small Cap- pays dividend

Attractive valuation with excellent growth prospects and zero debt...with a dividend to boot...love and own this stock!

no LT debt... good interest coverage.