Investing in Pet Supply Co.'s?

[Noreene Rodgers]

I belong to an investment club. Several wise souls are teaching the few of us who know nothing about the stock market, how to invest.
We have a pretty good portfolio with lots of diversity. Harley Davidson & Martha Stewart are doing very well right now!
The topic of investing in some sort of pet supply was brought up. We looked at Petsmart & Petco. They are on a downward trend right now, which is a good time to buy. But I was wondering if there is something I am missing. I spend the most money on pet food, next vet expenses, then accessories. I wonder if we should be looking to invest in pharmaceutical companies, that make Rimadyl maybe, or vet supplies, although the supplies probably come from human medical supply vendors.
What do you think?
Noreene

[ 07-08-2005, 01:28 PM: Message edited by: Noreene Rodgers ]

 

[Sue M.]

I've been hearing bad things about extended use of the Rimadyl.... I wouldn't go with that one!
The Cosequin is getting to be very popular!

 

[blstarke]

How about Interceptor or capstar?

 

[swigginton]

Not sure about Petsmart or Petco, I have not looked at them, but PetMed Express (pets) did very well this last year. I would look for both companies to maybe go into that field also.

I personally would look for a growth stock that also pays dividends. Since you are diversified, I would assume you have your bases covered with oil exploration companies. There are a few trusts out there that pay really good dividends and give a good return.

There are a few exploration companies that while they are risky could pay big rewards for the risk, if and when they find the oil they are looking for in any quantities.

 

[Greg L]

Don't forget that in this little universe (NN as a whole), pet care/expenses are probably MUCH higher on the priority list of people than the general world population as a whole.

If you are getting your views of the strengths of the pet industry from people who own expensive/high maintenance dogs and then take the time to track down an internet forum dedicated to them, you probably aren't getting a clear view of reality. They will care/spend more on their dogs than the average pet owner (some take it to seemingly unhealthy extremes).

While it certainly is a decent industry, due diligence should be preformed before putting money in.