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RVB's Market Musings

What began here as an avenue to interact and learn has far exceeded those goals.

If you are a prospective employer, please consider this site a place where you can see my passion for investing...

Saturday, January 21, 2006

Valuation for the ehem, lazy

I had one hell of a night last night. But, I am safe and my car miraculously did not get hit while stopped on the side of the highway in a snowstorm. So I decided that since I could not make it to the elegant retirement party for a former colleague that I would head off for a burger and beer with a fellow classmate.

He has some experience in investments, and he pointed me to a website that one can use to just kind of do a valuation "sniff test" if you will. The site is called Value Pro. I'm sure that there are zillions of y'all out there who've known about the site for years. But, I hadn't heard of it before but I have to say that it provides a nice starting point for valuing stocks.

One of my favorite stocks is a little company called PetMed Express (PETS). They have a unique business - they sell pet prescriptions over the phone. It's brilliant - because if you know how people are in this country with pets, you'll note that pet healthcare costs are hugely on the rise. In the old days - we simply replaced our pets. Not any more. And if PetMed's growth story proves anything, that would be it. Anyhow, with a 20% growth rate, Value Pro's DCF says that PETS is worth almost 18 bucks. Monday mornings earnings report is worth checking out...

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