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PetSmart, Inc Message Board

  • mny_game mny_game Aug 30, 1999 1:09 PM Flag


    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

    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.

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    • Thank you for the clarification and the investing tip. I'll try to pay more attention in the future.


    • I take my Weimaraner with me to the nearest "big box" and we shop together. I guess it's a pet- owner thing!

    • Got this from II Online. Ain't good news,

      PETsMART (Nasdaq: PETM - Quotes, News,
      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

      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.

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