Sunday, March 05, 2006

Capitalist Pug update

Greetings, my financially responsible flock. It has been about six months since I issued my first Capitalist Pug's Stock Pick, so it seems like a fine time for an update. On Aug. 26, I recommended breaking open the puggy bank to buy shares of PetSmart (PETM), which had been beaten down to a 52-week low by a disappointing earnings report. I cautioned that it could be a bumpy ride in the short term, but I made it clear that I felt this was an excellent long-term holding. The stock did, indeed, go lower over the next couple of months, creating even more attractive buying opportunities. But PetSmart, a leading purveyor of halaal rawhide, has since shown strong signs of recovery. The company last week reported solid fourth-quarter results, with operating profit increasing nearly 15 percent and solid same-store sales growth. The closing price on the day of my recommendation was $24.65. On Friday, the stock closed at $27.83. For those of you smart enough to heed the advice of your furry investment guru, this amounts to a better-than 25 percent annual percentage increase. To put it simply, if you had purchased 315,000 shares of PetSmart on the day of my recommendation, you would now be over $1 million richer. Is there anyone out there who could not use an extra $1 million? If so, please note the PayPal virtual offering plate to your right.

Full disclosure -- the ayatollah owns shares of PetSmart.


Leslee said...

thanks for the advise

Sam I Am said...

The PLAYERS in PUG'S that's good to know!

Ayatollah Mugsy said...

I hope to enrich you financially as well as spiritually. Better tithing, you see.