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PetMed Express, Inc. Message Board

  • jbw41969 jbw41969 Feb 27, 2008 11:56 AM Flag


    This analyst cites the 2004 selloff to the presidential election..What a bunch of BS, he obviously has not followed the stock.
    It was excessive insider selling that prompted the stock to go from 10 to 4. The second selloff at 19.99 was that analyst out of Avalon downgrading based on price.

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    • fish_discover_water_last fish_discover_water_last Apr 11, 2008 8:12 AM Flag

      Not claiming that the analyst is correct but the connection with the election is something that PETS management has mentioned on conference calls before.

      This is how they explained it on a cc last year as I recall. PETS relies heavily on flexible buying of cheap TV spots for it's ad spend. This is a very effective strategy for maximizing spending on TV advertising. They aim to spend a somewhat stable amount. When ads are cheap they can get more ads for the same TV ad spending. The election connection is that leading up to an election there are fewer unpurchased ad slots and campaigns are competing with PETS for those discretionary slots driving the price up.

      Ad spending is a significant element in PETS expenses. The way PETS works is, more ads, more revenues/less churn/etc, less ads less revenues/more churn/etc. When tv ads are cheap they can get more ads for the same price. During an election cycle the ads are relatively more scarce and more expensive so they do relatively less advertising at relatively higher prices

    • Hopefully some more dumb%ss analysts downgrade will come....I wouldn't mind buying some more shares at a cheaper price.

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