Please read carefully our disclaimers at the end of this newsletter. Market Stance: BEARISH (since August 10, 2005)Contents
Year-To-Date Performance
* An average of managed accounts, net after commissions and fees. Individual account results may vary. See also www.deencapital.com/perform.htm. For information on managed accounts, see www.deencapital.com/mgdaccts.htm. Bought PetMed Express Inc. (PETS)
* The "Net buy price" is the total net purchase cost after commissions for all managed accounts divided by the total number of shares. Today, Thursday, September 1, 2005, I bought PETS, first for client accounts, then for my personal accounts. PetMed Express, Inc. is a pet pharmacy. The Company offers prescription and non-prescription pet medications, as well as health and nutritional supplements. PetMed Express offers its products via telephone, fax, mail, and the Internet to customers throughout the United States. Here's why I bought this stock: + Rising gas prices should benefit mail-order retailers such as PetMed Express, as people look for ways to avoid driving. + Valuation: At 18 times next year's estimated earnings and a projected 5-year annualized earnings growth rate of 35%, the stock is attractively priced. + Excellent recent sales growth: Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +15%, +21%, +10%, and, most recently, for the quarter ended June 30, +24% to $43.6 million. + Excellent recent earnings-per-share growth: Here are the quarterly EPS figures for the last eight quarters: Sep 04 vs Sep 03: 8c vs 8c Dec 04 vs Dec 03: 8c vs 5c Mar 05 vs Mar 04: 10c vs 6c Jun 05 vs Jun 04: 15c vs 8c + Rising earnings-per-share estimates: According to recent data from First Call, the consensus earnings estimate for FY 06 (Mar) is 46c, revised upward from 44c 90 days ago (and up from FY 05 actual earnings of 34c); and the consensus estimate for FY 07 is 57c, revised upward from 54c 90 days ago. + History of earnings surprises: This company has reported earnings at least 3c ahead of estimates in two of the past three quarters (the most recent quarter was in line with expectations). + The company's industry group ("Retail - Mail Order & Direct") is ranked #29 for relative strength out of 197 industry groups tracked by Investor's Business Daily. This ranking changes daily, and it has been generally rising over recent weeks and months. + The stock's 200-day moving average is rising, indicating a long-term uptrend. -KD, September 1, 2005
* Net buy prices shown are the total net purchase cost after commissions for all managed accounts divided by the total number of shares. ** Current prices are at least 20 minutes old. Welcome to The Deen's ListTM, an e-mail stock newsletter from Deen Capital Management, Inc. My intention is to inform you as quickly as is practical regarding my stock market moves. When I buy or sell a stock, first I take care of client accounts, then I buy/sell for my personal account(s), and then, third, I send out this newsletter. Your feedback is welcome. Send e-mail to deenslist@deencapital.com. To subscribe or unsubscribe, include the word "subscribe" or "unsubscribe" in the Subject line. This newsletter is free to managed account clients. For a limited time, it is also free to all interested parties. Your personal information, including your e-mail address, will be held in strict confidence by Deen Capital Management, Inc. We will not share it with or sell it to others. All stocks discussed in The Deen's ListTM involve a high degree of risk. It should not be assumed that any stock discussed in The Deen's ListTM or purchased by Deen Capital Management, Inc. will be profitable. Past performance is not necessarily indicative of future results. The information contained herein has been compiled from sources deemed to be reliable; however, we are not responsible for its accuracy or completeness.
Ken Deen Copyright © 2005 Deen Capital Management, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||