Northern,WI  10/5/12 (BasicsMedia) – Are you a dog or a cat person? Maybe you are a little more exotic and have bird or even a big snake. One of the young people I hired had himself a big and I mean big Boa. Needless to say the apartment building in which he lived did not have a rodent problem.

The big dogs of the DOW are about to get a new kid on the block as the S&P 500 is set to welcome major pet supply retailer PetSmart Inc. (NASDAQ:PETM) to their ranks. On October 5th the largest U.S. retailer whose main concern is making sure the animal kingdom gets what it needs to be comfortabel will get a new home replacing Sunoco (NYSE:SUN) which was acquired by Energy Transfer Partners L.P. (NYSE:ETP). PetSmart like the Jeffersons before them, “Is Moving On Up” from the S&P Midcap 400 index. Cabel’s (NYSE:CAB) will reap the benifit of PetSmart’s move as the outdoor giant takes their place on the S&P Midcap 400. This move was announced on Monday.

So the big question of are you a dog or cat person is pretty evenly split as 39% of U.S. households own a dog while 33% of U.S. households own a cat and lets not forget all the rabbits, birds, hamsters, fish and yes even the snakes that reside within our homes. Pet food and accessories is a huge business with over 67 billion a year being spent on dog and cat food alone. That is four times the amount of money we spend on baby food and slightly over twice the amount that we spend on coffee. I don’t know about you but I need a lot of cups of coffee to get the motor going in the morning.

Pet Smart’s biggest competitor is the privately held Petco, but there are quite a few entities ranging from every major supermarket, large retailers like Wallmart and Taget,  all the way down to your local Veterinary office who sell pet food.

PetSmart’s market cap is $7.4 billion with 1,200 stores spread across the United States generating revenue. Their share price has been been hovering around the $68 mark since spring but over the past year it is up 33%. If you were smart enough to get in near the beginning of when the company started trading in 2003, you would have bought shares for $10 a piece leaving you a nice tidy gain of 672% after market close yesterday.

Not bad for a nine year stretch. Now that is what I call a Dog’s life!

Disclaimer: We have no position in any of these companies and do not intend to trade any shares. Nor are we paid to write about them.

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