James Thorne
Petmed Express Inc
PETS-Q
COMMENT
Jun 16, 2016
An online-server where you get your pet foods and pet medicines delivered to you. Has a decent dividend, but doesn’t really have any growth. Doesn’t have a defendable moat so that there is no competitive advantage. Thinks it is going to be okay here, but at the same time wouldn’t be surprised to see others replicate the model. Dividend yield of 4.2%.
Stockchase Research Editor: Michael O'Reilly The company operates as a pet pharmacy. The industry has done well during the pandemic. The company trades at 20x earnings, compared to peers at 36x. Over 90% of the shares are held by institutions, making it have good staying power. It pays a good dividend, backed by a payout ratio of 75% of cash flow -- sustainable. We would buy this with a stop loss at $22.50, looking to achieve $41 -- upside potential over 32%. Yield 3.69% (Analysts’ price target is $41.00)
(A Top Pick May 06/21, Up 33.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with PETS has achieved its $41 objective. To be disciplined, we recommend covering 50% at this level and trailing up the stop from $22.50 to $27.50. It triggered, this would result in a combined return on investment over 11%.
(A Top Pick May 06/21, Down 10.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with PETS has triggered its stop at $27.50. We recommend covering the balance of the position at this time. When combined with the previous recommendation to cover half the position, this results in a net investment gain over 11%.
An online-server where you get your pet foods and pet medicines delivered to you. Has a decent dividend, but doesn’t really have any growth. Doesn’t have a defendable moat so that there is no competitive advantage. Thinks it is going to be okay here, but at the same time wouldn’t be surprised to see others replicate the model. Dividend yield of 4.2%.