Competition. Amazon, Petsmart, Walmart, Costco. Second factor is how the stock trades. Low volume, apparent disciplined day traders which makes it difficult to trade more than a few hundred shares. Problem with products not being able to be sold without a prescription from a veterinarian. Cost to become a commercial player would require increased revenues for advertising which would be a drain on their income and balance sheet. Web site needs to be improved, however companies like Costco and Amazon have great sites. Most of their sales are products that can be bought on Amazon or any other retailer, such as flea collars. Veterinarians still issue most drugs and treatments because they are unwilling to sign off prescription rights as they are responsible for doing yearly exams, such as blood work and other tests.
First, no one knows about any stock. Look what happened to JCP the past few weeks - cut in half! Second, PETS was hit on their last earnings report. The stock has recovered now to over $12 for the first time since this report. It advertised heavily for market share and achieved their desired result albeit their expenses were much higher; thus, hitting earnings. Third, I bought this stock for their enticing advertisement and nice dividend. I expect them to report good earnings. This is a great growth stock to have in a portfolio. Diversification, of course, is the key.