Quick Pitch: PetMed Express

PetMed Express (Nasdaq: PETS)--Long
Current Price: $11.69 Target Price: $15.00
Source: Hedge Fund. New York, NY.

Quick Pitch: Expectations are rather low (from sellside analysts as well as the buyside with 26% short interest). The company's small beats the last couple of quarters have sent the stock soaring. It is up 43% from it's lows in early October and is still priced inexpensively. I am not claiming that this will be the growth darling it was in 2005. It will probably never reach that growth level again, given the competition. But in order for this investment to work, the Company needs to improve just slightly. This is a good example of a company that has been priced for disaster and any small glimmer of hope, such as an earnings beat, has and will send the stock soaring.