As an investor - ( Retired ) I play with a small 6 figure (at risk ) portfolio - the majority will be long term stocks/bonds and mutual funds. Now - to put more then 5%-10% into one stock is nuts. The risk of anything happening is to great. If your at risk portfolio is in the millions, why waste time / money on these high risk ventures - with a 7 figure at risk portfolio there are much better fish with better expections.
This tells me:
a) This is just made up to impress the masses. b) You fell into lots of Dollars and are an idiot c) You don't now how to enjoy life - go to las vegas instead - it is a lot more fun.
PETsMART (Nasdaq: PETM - Quotes, News, Boards) Headquartered in Phoenix, Arizona, Petsmart is a niche retailer of products and services for pets and their families. The company operates more than 570 pet superstores in the United States, Canada and the United Kingdom. The company also has a pet supply catalog business, and recently, it has made a push into becoming an online provider of pet products and information.
The move into online e-tailing is probably more reactive than it is proactive. Although Petsmart is in one of the largest retailing categories (Americans spent over $4 billion on pet food and supplies in 1998; Imagine if we spent that much to feed starving humans), it has not enjoyed much success.
Sales and earnings have fluctuated wildly over the last two years, with the company posting a net loss of $34.4 million in its January 1998 fiscal year and a net profit of $23.3 million in fiscal 1999. Plus I have a question for Petsmart. Why doesn't it report same-store sales on a monthly basis?
Thanks to the company's erratic fiscal record, the stock has not enjoyed much success either. Back in October 1996, the stock was at $30. In 1997, the stock was at $12, which is when I recommended shorting it due to its weak sales numbers and erratic earnings history. Today the stock is $5, off 83% from its all-time high.
Petsmart has been announcing executive management changes at the rate of one per month, which is the sign of a company in disarray. The president of the UK division resigned in June.
I still don't like the company's outlook. Neither do Deutsche Bank Alex Brown and Dain Rauscher Wessels, who both downgraded the stock earlier this month.
Unfortunately these two analysts were two years too late. Plus they downgraded the stock but did not change their quarterly estimates. Strange. I think the company will miss estimates by a penny and (ahem) I wouldn't touch this stock with my cat's money.