Pet Economics 101 Investing in pet health companies: This veterinarian’s top picks

May 20th, 2008  

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If anyone can tell me a service that allows a non-native US-resident small investor get a few shares of anything, I'd appreciate it. I tried several companies and after many pages and much subsequent spam they all rejected me as I am not a citizen (although I am a legal and long term resident)

emily May 20th, 2008 02:53:00 PM

E*Trade didn't take your money?? I'm shocked!

Dr. Patty Khuly May 20th, 2008 03:06:00 PM

Thinking from a purely portfolio-centric viewpoint, if I were going to buy pet-related stocks, WOOF would be one. It's coming off 2-year lows but is nearly double where it was 4 years ago (1k invested in WOOF 4 years ago would be 2k today).

In the long term, for better or worse, I think that "chain" corporate vet medicine is going to grow. We can debate the pluses and minuses of that, but I feel pretty certain that in the long run, people are going to continue the trend toward treating pets like members of the family and wanting human-grade expensive medical options. The corporate chain of VCA can provide that due to economies of scale. I am ambivalent about whether or not, however, this means improved quality.

I believe that the management structure of a corporate chain is well-suited to provide better standards, oversight, and quality control. But that is, ONLY if they want to. If they are focused only on maximizing profit, that potential is thrown away and they can be the coldest and worst experiences. I am very ambivalent on the subject.

I am not ambivalent about Metacam, however, and as I consider it very dangerous for cats, and am a cat lover, I would not invest in the company that markets it. I couldn't sleep at night if I did.

Stefani May 20th, 2008 04:46:00 PM

Oh, BTW, WOOF = VCA-Antech.

Stefani May 20th, 2008 04:50:00 PM

OK, sorry, I have to correct myself. That's what I get for gauging price off eyeing an online stock chart.

WOOF has gone up from 21.52 4 years ago to 32.84 today, which is about 50% growth. Lots less than 100%. Not bad, tho. Off a high of $45.22.

Just wanted to correct my error.

Stefani May 20th, 2008 04:58:00 PM

My pets have been prescribed several of the drugs mentioned, including one of the "pet supplement" brands. I really never felt strongly one way or the other, except am faithful to "Frontline".

I love Virbac shampoo & ear cleaners. The Epi-soothe is mild, non-drying and good for just about any type of coat.

Stephani, can't really coment on the VCA part of WOOF, but I say thumbs up to Antech diagnostics, and wish that the clinic I take my dogs to, utilized them for a reference laboratory. Competitive pricing, full range of services, great turn-around, great "package prices". The one time I called (YEARS AGO) to ask a few technical questions regarding methodology utilized, the receptionist was courteous---switched me to the appropriate department, and the tech was knowledgable and courteous also.

Barbara A. Albright/New Hampshire May 20th, 2008 08:20:00 PM

I'm a big fan of oxyglobin. As an emergency vet, I rely on it's mere presence in my hospital for those times when blood is in short supply (especially for cats who don't need a whole lot of the stuff). It has certainly saved a few lives in my hands. Because oxyglobin is such a big part of Biopure, I can see one investing in Biopure because of their love for Oxyglobin.

Metacam ... A+ ... I agree. Vetmedin--I certainly see lots of good cardiologists using this, but alas, don't get to use it myself, as an emergency vet. The Boehringer's line (human stuff) is solid, making this company a good investment.

The problem I run into is with companies like Pfizer. I have been investing in Pfizer for the past 7 years and they have brought me nothing but heartache and worry. Their stock prices continue to drop, and while my pseudodripping (buyandhold.com) allows me to take advantage of dollar-cost averaging while their stocks are in the gutter, my fear is that they have too much competition in the human pharm world to offset their successes with Cerenia (I'm a big fan so far) and Rimadyl (still my mainstay for dogs). In fact, I have currently stopped purchasing more shares. Haven't sold yet though.

Great summary though!

David Bessler May 20th, 2008 10:50:00 PM

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