PetMed Express (PETS:US), an online pet pharmacy, had a tumultuous past week, dropping as much as 15% intraday Thursday under heavy volume from its peak. This volatility is the result of allegations published in a bombshell report by research firm Aurelius Value. Specifically, mid-single digit price and volume growth on higher margin SKU’s have translated into ~60% incremental gross margins yielding double-digit earnings growth given fixed operating cost leverage. Henry: We believe PETS is an undifferentiated online retailer selling commoditized products in a very competitive industry that has failed to gain market share over time. Schiefelbein: Do you agree with the substance of the Aurelius report?

Source: Forbes August 29, 2017 18:45 UTC