Profit, Same-Store Sales Rise For PetSmart (PETM)

Last post 11-20-2009 6:52 PM by Adrien. 2 replies.
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  • 11-19-2009 1:59 PM

    Profit, Same-Store Sales Rise For PetSmart (PETM)

    PetSmart (NasdaqNM: PETM) closed yesterday at $26.31. So far the stock has hit a 52-week low of $13.27 and 52-week high of $26.85. PetSmart stock has been showing support around 25.43 and resistance in the 26.81 range. Technical indicators for the stock are Bullish and S&P gives PETM a neutral 3 STAR (out of 5) hold rating. PETM appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Apr '10 25 covered call (QPT DE) for a net debit in the $23.46 area. That is also the break even stock price for this trade. This covered call has a 149 day duration, provides 10.83% downside protection and a 6.56% assigned return rate for a 16.08% annualized return rate (comparison purposes only). PetSmart has a current annual dividend yield of 1.54%.

  • 11-20-2009 10:38 AM In reply to

    Re: Profit, Same-Store Sales Rise For PetSmart (PETM)

    How come PetSmart is doing well? I would have guessed they weren't doing well because of the recession. People are still buying pets? They're not cheap... They're not necessary... But they are great to have!
  • 11-20-2009 6:52 PM In reply to

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