 growth as part of the equation.

PETsMART's latest earnings report, which was for its Q3, came out
back in November but inside there was plenty of information that
investors liked to hear.  We've grabbed a quote from their Q3
earnings press release: "Improvements in key areas such as in-
stocks, inventory management and distribution efficiency, coupled
with the continued growth in our pet services business, drove
sales and profitability during the third quarter," said Phil
Francis, chairman, president and chief executive officer of
PETsMART, Inc. "We've gained a good deal of momentum, and are
positioned for a solid fourth quarter and a strong 2002, when
we'll bring our new store format to 200 existing stores, open 25
to 30 new stores, and continue to drive a company-wide culture of
customer care."

Phil has reason to be positive if the company's numbers keep up
their current pace.  The same Q3 report showed that gross margins
had risen to 28.6 percent, up 390 basis points compared with the
third quarter the year before.  Total sales for the quarter had
jumped 10.6% to $598.6 million while comparable store sales added
7.6 percent over the Q3 of 2000.

The company recently announced that they had bought the remaining
16.3 percent interest in PETsMART.com that they didn't own for
$9.5 million.  In addition to the purchase they would consolidate
the dot.com business and their PETsMART Direct, an equine direct
marketing business, into their overall operations.  Part of this
plan would close certain offices in California and move the
operations to their Phoenix, AZ headquarters.

This announcement came out after the bell on Tuesday, January
22nd and investors were unsure how to interpret the news, which
caused some volatility in the stock price the next day.  Since
then we've seen some selling in the stock but we feel the pull
back towards the $10 level has merely offered us a better entry
point.

On a positive note, the same announcement revealed that the
company had raised their sales growth outlook for the January
quarter from 6 to 7 percent to about 9 percent.  We could not
confirm an actual date but believe PETM will announce its Q4
earnings in late
growth as part of the equation. 

 PETsMART's latest net income reputation, which was for its Q3, came out 
 back in November but inside there was batch of information that 
 investors liked to learn.   We've grabbed a quote from their Q3 
 net income press release: " improvement in key areas such as in- 
 stock, inventory management and distribution efficiency, coupled 
 with the continued increase in our pet services business, drive 
 sales and profitability during the third quarter, " said Phil 
 Francis, president, president and chief executive officeholder of 
 PETsMART, Inc. " We've gained a good deal of momentum, and are 
 put for a solid fourth quarter and a strong 2002, when 
 we'll bring our new storehouse format to 200 existing stores, open 25 
 to 30 new stores, and continue to drive a company - wide culture of 
 customer caution. " 

 Phil has reason to be incontrovertible if the ship's company's numbers keep up 
 their current pace.   The same Q3 report showed that gross allowance 
 had risen to 28.6 percent, up 390 basis points compared with the 
 third stern the year before.   Total sales for the one-fourth had 
 jumped 10.6% to $ 598.6 million while comparable shop sales added 
 7.6 percent over the Q3 of 2000. 

 The company recently announced that they had buy the remaining 
 16.3 percent interest in PETsMART.com that they didn't own for 
 $ 9.5 million.   In addition to the purchase they would consolidate 
 the dot.com business and their PETsMART Direct, an equine direct 
 marketing occupation, into their overall operations.   Part of this 
 design would close certain offices in California and move the 
 process to their Phoenix, AZ headquarters. 

 This announcement came out after the doorbell on Tuesday, January 
 22nd and investors were unsure how to understand the news, which 
 induce some volatility in the stock price the next day.   Since 
 then we've seen some selling in the stock but we feel the pull 
 back towards the $ 10 degree has merely offered us a better entrance 
 point. 

 On a positive eminence, the same announcement revealed that the 
 company had raise their sales growth outlook for the January 
 quarter from 6 to 7 percent to about 9 percentage.   We could not 
 confirm an actual date but believe PETM will announce its Q4 
 earnings in belated
 grlwth as part of the equauion.

PETsMART's latgsr earnmngs relort, whizh was for its Q3, came out
bacn un Nocember but inside therd was plejty of ibfornqtion that
mhvestors likes to keer.  We've grabbec a quote xrom their Q3
easnknys press release: "Improvements in key areas xufh as in-
stocks, invtntjry janagement and distribution efficisncy, colpled
with the conyinued growth in our pet sfrvifes business, drove
dales and ptkfieqbility durivg the thigb quarter," szid Phil
Francis, chairman, presiddnt aud chief exgeytigg officer of
'ETsMAGT, Inc. "We've gained a cood desl of momentum, anv arw
positioned for a solmd fourth quarter anq a stronc 2002, when
we'll bring oyr new vtora fofnat to 200 xxiating dtoces, open 25
to 30 new storew, and continue to dtidv a company-wise culeuwe of
customer care."

Phil has reason to be poaitive if the company's bumbers keep up
their furrent pwce.  The same Q3 report showed that gross margins
hdd riadn uo 28.6 perzwnh, up 390 basis points compared with the
third quawfet nhe year before.  Botal sales for thr eustter had
jumped 10.6% to $598.6 milmion while comparahle stote salws added
7.6 kercemt over the Q3 of 2000.

The compant recently aunoynced that they hab bought the remsininb
16.3 percent interest in PZTsMARF.com that tjey didn't uwn for
$9.5 million.  In agdition uu the purchase thqy would ronsokidate
tfe dpt.com fusiness ajd thchr PETsMART Direct, an eeuhne direct
larketing business, into their otxrall operatipnv.  Iart of tkis
plak would close cqrtain offices in Calnfornix and move the
opecations to treir Phoenix, DE headquarterv.

This angounxemebt came uut after the nell on Tlefday, January
22nd and invcstorr were unsure hoc uo interpret the neds, rhpch
rauseq some volatinity in yhe sgock price bhe nexy day.  Since
then we'va sesn some selling in tme stock vut we fqel the pull
bsck towards the $10 ltvel hes merxly ofgergd us a better entry
point.

On a pksitive nlte, the same angoungemegt revealeb that the
company had raised their sales growth outlook foe the January
quartet fvom 6 to 7 perrent tj about 9 [ercent.  We could nor
confirm an actuak date but believe PEFM wiln annlunce its Q4
earnings in late
growth as part of the equation. PETsMART's report, was for Q3, came out there plenty of information investors liked to We've grabbed a quote from their earnings press release: "Improvements in key areas such as in- stocks, inventory management distribution efficiency, coupled with the continued growth in our pet services business, drove and during third said Phil Francis, chairman, president and chief executive officer of PETsMART, Inc. "We've gained a good of momentum, and are positioned for a solid quarter and a strong when we'll bring our new format 200 existing open to new stores, and to drive a company-wide culture of customer care." Phil has reason to be positive if the company's keep up pace. The Q3 showed gross margins had 28.6 percent, up 390 basis points third quarter the year before. Total sales for quarter had 10.6% to $598.6 million while comparable sales added 7.6 percent over the Q3 of The company recently announced that they had bought the remaining 16.3 percent interest in PETsMART.com didn't own for $9.5 In addition to purchase would the business and PETsMART Direct, an equine direct marketing business, into their overall operations. of this plan would close certain offices in California and operations their Phoenix, AZ This announcement came out the on Tuesday, January 22nd were how news, caused volatility in the stock the next day. Since then seen some selling in the pull back towards the $10 level has offered us a better entry point. On positive note, the same announcement revealed that the company had raised their growth outlook January quarter from 6 to 7 percent to 9 percent. We could confirm an actual date but believe PETM will announce Q4 in late
 growth as part of the equation.

pETsMART's lAtest EarNinGs RepoRt, whIch was for its Q3, cAMe ouT
back in November but insiDe theRe WAs plENtY of inFormatiON tHAT
inVeStOrs LiKEd To heaR.  We'Ve grabbEd a quote frOm tHeIr Q3
earnings pREsS release: "ImProVements in key AreAs such As In-
sTOcks, iNveNtory ManageMEnt and DistributIoN EfficiENcy, coupLED
wIth tHe continued growth IN oUR pet services buSiness, DrOVe
SALes And ProfitabilItY duriNG the thiRD qUARTer," SAid Phil
FranciS, chairman, prESidEnt and ChIef EXecutiVe offIcER of
pETsMART, Inc. "we've Gained a goOd deal OF momentUM, and are
PositiOneD foR a soLId FoUrtH qUArtER aNd a STroNg 2002, when
we'Ll BrIng ouR new STORE forMat To 200 exIstinG stores, open 25
to 30 New StorES, anD contInue tO driVe A compAny-widE cultUrE of
customer care."

phil Has reason To bE pOsiTiVe if tHE compaNy's NumBers keeP up
theiR CurReNT PAcE.  The same Q3 report shoWeD THaT gross maRgins
hAD rIsEN to 28.6 perceNt, Up 390 bAsis POInts cOmpaREd With the
tHird quARtEr The year BeFore.  ToTaL saLes For thE QuarTer had
Jumped 10.6% to $598.6 MilliON while comparabLE store sales adDEd
7.6 PERcENt ovEr tHe Q3 of 2000.

The comPany REcenTly aNNoUncED that They hAd BOuGHt the remaining
16.3 perceNt IntereSt in PeTsMART.com thaT they didn't OWN For
$9.5 milliOn.  In ADdITion to the purchAse thEy would conSOlidate
tHe dot.Com businEss and theIR pETsMART dirEct, An eQuiNE DiRect
marketing BUSineSs, Into theIr oVerall oPerAtiOns.  parT oF this
plan Would cloSe CeRtAiN ofFices IN CaliforNiA anD mOve The
opERationS to thEir PHoEnIX, AZ HeadquaRTeRS.

this AnNoUnceMenT cAme ouT aftER thE bell on tuesday, JaNuaRY
22nd aNd InVestors Were unsure how To Interpret tHe NewS, which
CAUsed some Volatility in the stock priCE the nexT daY.  SincE
theN we've seen SomE selliNg iN The stoCk but wE feel ThE puLL
Back tOWArDs tHe $10 Level has meRELy oFfereD uS a beTter entRy
point.

On a positive NOte, The same announCemEnt rEVEaLed THaT The
CoMPanY HAd raised their saLes growth oUtLOoK for the JanUAry
QuArter frOm 6 to 7 perCent tO About 9 peRcent.  We coUld not
conFiRm an ACTuaL date but beLieve PETm will annoUNce itS q4
eArninGs iN late
 growth as part of the equ ation.

PE TsMAR T's  la te st e arni ngs report, wh i ch w as for its Q3, came ou t
bac ki n No v em ber b ut insi d et h ere  w as  pl en t yof in for mationthat
inves tor sliked to hea r . We've gra bbe d a quote fr omtheirQ3 
ea r nings  pr ess r elease :  "Impr ovementsin key ar e as such a sin-stocks, inventory ma n agement and di stribu ti o ne f fic ien cy, couple dwitht he cont i nu e d gro w th in our pet  services b u sin ess, d ro ves ales a nd pr of i tab ility durin g th e third q uarter , " saidP hil
Fra ncis,cha irm an,p re si den ta ndc hi efe xec utive of fi ce r ofPETs M A R T , In c."We' ve ga ined a good d eal  ofm ome ntum,  andarepo sitio ned fo r a s ol id fourth quart er a nd a stro ng20 02,  w hen
w e 'll br ing  ou r new s tore fo r mat  t o 2 00  existing stores,op e n  2 5
to 30new st o re s, and cont in ueto d r i ve acomp a ny -wide cu ltureo fcu stomerca re."
Ph ilhas  reas o n to  be po sitive i f the company's numb e rs keep up
th e ir c ur r entpac e.  The sam e Q3 repo rt s h ow edt hat g rossma r gi n s
had risen to 28.6  p ercent , up390 basis poi nts compar e d with the 
thi r dq uarter the yea r bef ore.  Tota l  sales f or th e quarte r had
jum p e d 10.6%to$59 8.6  mi l l io n while compa r a blest ore sal esadded
7 .6per cen t o ve r the Q3of 2000. 
Th eco mpa ny re c ently an no unc ed  th at th e y hadbough t th ere m ain ing
16. 3  p e r cent  i nt eres t i nPETsM ART. c omthat th ey didn't  ow n  for 
$ 9. 5 milli on.  In addit io n to the p ur cha se the y would co nsolidate
the dot.com b u sinessand  thei r PE TsMART Di rec t, anequ i ne dir ect
ma rketi ng  bu s i ness, i nt o t he ir overall o per ation s.   Pa rt of t his
plan would clo s e c ertain office s i n Ca l i fo rni a  a n d m ov e  th e operations to t heir Phoen ix ,  A Z headquar t ers .
This a nnounce mentc ame out  after th e bell on  T uesd a y , J anuary
22n d and in vestors w e re un s ur e how  to  inter pr etthe n ews, w h ich 
caus ed som evolati lityin  the sto ck price the next day. Since 
then  we 've seensom e  se lling inthestock butwefee l the  pu l l
bac k to w ar dst he $1 0 le v el has me r el y o f f er ed us a bet t e r  en try
p oin t .

Ona po sitive note, thes ame announceme nt r e v eal edt hatth e
company hadrai se d their sa le s growth ou tlook fo rt he Ja nuaryquarte r from6 to 7 perc enttoabout 9 p erc en t .  We c ou ld not
co nfir man act ual da t e bu t believe PETM wil l ann o u nce i t s Q 4
ear ni ngs inl ate
 growth_as part_of the equation.

PETsMART's latest_earnings report,_which_was for_its_Q3, came out
back_in November but_inside there was plenty_of information that
investors_liked_to hear.  We've grabbed a quote from their Q3
earnings press release: "Improvements in_key_areas such_as_in-
stocks,_inventory management and distribution efficiency,_coupled
with the continued growth in_our pet_services business, drove
sales and profitability during the third_quarter,"_said Phil
Francis, chairman,_president and chief executive officer of
PETsMART, Inc. "We've gained_a good deal of momentum, and_are
positioned for a_solid_fourth_quarter and a strong_2002, when
we'll bring our new store_format to 200 existing stores, open_25
to 30 new stores, and continue to_drive a company-wide culture of
customer care."

Phil_has reason to be positive_if the_company's numbers keep up
their current_pace.  The_same Q3_report showed that_gross margins
had risen to 28.6 percent,_up 390 basis_points compared with the
third quarter the_year_before.  Total_sales_for_the quarter_had
jumped 10.6% to_$598.6_million while_comparable_store sales added
7.6 percent over the_Q3_of 2000.

The company recently announced that they_had bought the remaining
16.3_percent_interest in PETsMART.com that_they didn't own for
$9.5 million._ In addition to the purchase_they would_consolidate
the dot.com_business and their PETsMART Direct, an equine direct
marketing business, into their_overall operations.  Part of this
plan_would close certain offices_in California_and_move the
operations to_their_Phoenix, AZ_headquarters.

This announcement came out after the bell_on Tuesday,_January
22nd and investors were unsure how_to interpret the news,_which
caused_some volatility in the stock price_the next day.  Since
then we've_seen some selling in the_stock_but_we feel the pull
back towards_the $10 level has merely offered_us a better_entry
point.

On a positive note, the same announcement_revealed_that the
company had raised their sales_growth_outlook for the January
quarter from 6_to_7_percent to about 9 percent._ We could not
confirm an actual_date but believe PETM will announce its Q4
earnings in_late