PETS was up again today. PETS is an on-line pharmacy for pets and beat both earnings and revenues significantly with their last earnings release.
I recently did some analysis of the pet market space. Did you know that private equity is big in the veterarian area? Why do you think this is?
Well, when I was a kid, if your dog or cat had a physical problem, there wasn't much done. Now days pet owners are shelling out BIG dollars to get services I never heard of when I was a kid. There are a lot of surgeries being done now days.
Like surgeries on humans, these are high cost items and growing bigger. Now, I am not judging whether it is right or wrong, but it is clear that many are willing to pay up for the family pet!
Private equity is aware of this and sees a market that has a competitive moat around it.
Just like the rest of the family, if we need surgery, we get it. Pets are a member of the family too!
