Primary Recommendation

Pets at Home - Big director buying; prospective PE just 8.5

October 2018

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Just as there is a tendency for investors to over hype companies on their way up and kick them when they’re down, that fashion extends to ignoring them even when they exhibit clear signs of recovery. For this reason, Pets at Home, which wouldn’t normally appear in waters that TMI swims in, has popped up on our radar. We have the first sign of earnings momentum but no sign yet of share price momentum. Pets at Home is the UK’s largest specialist pet retailer with almost 450 stores nationwide and in recent years has rolled out value added services such as vet practices and grooming salons to stimulate increased customer footfall and yield better overhead recovery.The strategy is sound enough given that spending on p ...

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H&T

Pets at Home (August 2024)

Pets at Home (February 2024)

Pets at Home (August 2023)

Pets at Home - Up-selling to 7.6m active customers yields 9x spend uplift if all services taken! (April 2023)

Pets at Home (February 2020)

Pets at home- Services side lifts sales 29% (August 2016)

Pets at Home (February 2016)

Pets At Home - Pet retailer benefits from growth in higher margin services (August 2015)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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