Diamonds and Dogs

05/07/12

Petmed Express Inc. (PETS)

Petmed Express was looking sick as dog today down 19.55% at $11.07. The companies downward spiral came from a weaker than expected earnings report. Net income fell to $16.7 million, or 80 cents per share, down 13% from $20.9 million, or 90 cents per share. "Moving forward, we will continue with an aggressive pricing strategy combined with increased advertising, while expanding our product offerings," President and CEO Menderes Akdag said in a news release. A bright note for Petmed was that new orders rose 22 percent to $11.5 million in the fourth quarter ended March 31, and the number of new customers climbed 25 percent to about 162,000, compared with 130,000 in the same quarter last year.

United Continental Holdings Inc. (UAL)

United Continental Holdings flew to a high altitude today, up 5.88% at $23.59. The company got a boost from a bullish article published in Barron's. The Barron's story published Saturday noted United's advantages, including its smaller-than-expected first-quarter loss, a strong route network, and membership in the Star Alliance. These advantages help United compete in the U.S. against Southwest and on overseas flights against Cathay Pacific. Along with the positive publicity from Barron's, United Continental was also helped by lower oil prices. Oil prices have been declining the past few days, now down below $100 a barrel, at $98.03. The company has been soaring, up 10% in the last month, helping the stock creep toward the 52-week high.

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