Welcome to The July 2005 Edition of The Savvy Investor,
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Each month The Savvy Investor analysts study, research, and examine hundreds of
stocks, in an effort to
pinpoint the one with the most promise.
This month's pick: Royal Pet Meals Inc.
Quick Chart: RYPM
Recent Price: $0.36 +13.05%
Top Breking News
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USA Today:
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Pet spending at all-time high. Consumer spending on pets continues to climb,
expected to reach $35.9 billion this year,
up from $17 billion a decade ago. Click here for more:
findarticles.com/p/articles/mi_m1272/is_2715_133/ai_n8551553
BusinessWeek Online:
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This year consumers will spend an estimated 35.9 Billion on their pets, making
the pet market larger than both the toy and
candy industries. Click here for more:
businessweek.com/smallbiz/content/may2005/sb20050513_4596.htm
DSN Retailing Today
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The fact that the $31 billion pet industry prospered through the 2001-2003
recession shows that people are willing to spend
money on their pets even during tough times. And in the past few years, much of
that money has been going !
toward sales of natural pet foods and treats... Click here for more:
findarticles.com/p/articles/mi_m0FNP
Financial Analysis
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Retail sales of pet food are projected for a steady climb, rising to an
estimated $16.7 billion by 2008.
Sales in the natural food and supplement category are increasing by double
digits each year as consumers grow more
aware of what goes into their pets' food.
RYPM plans to make synergistic acquisitions to propel faster growth and gain
market dominance
RYPM Plans expansion of services into ?niche? markets
Management believes that it would be entirely realistic for the Company to
capture at least one percent of the market each
year for i! ts first five years in the business.This would equate to revenues
growing from $200 million in its first year of
operations to in excess of $1 billion annually (just 5% of market share) five
years out!
Corporate Snapshot
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Royal Pet Meals, Inc. is an emerging growth development and management company
that specializes in using niche marketing
techniques to deliver "specialty" pet foods/products to the rapidly expanding
$34 billion (2004 estimate) pet products industry.
Royal Pet Meal products are all premium meal selections, natural, organic, and
wholesome, all designed to improve the
quality of life for pet and pet owners. Since a large percentage of this
booming pet market is serviced by small business vendors,
Royal Pet Meals management feels that! this highly fragmented marketplace lends
itself to both niche marketing and consolidation
of vendors. Royal Pet Meals, Inc. intends to capture various niche markets and
acquire/merge with selected profitable vendors,
realizing significant revenue and profit growth as a result.
Analyst Conclusion
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The recent SEC ruling to leave the Over The Counter Bulletin Board in its
current form is a very bullish sign for this market - possibly
a turning point. We think that this is an encouraging signal from regulators
that the OTCBB can expect a more positive financial
climate going forward. We assessed RYPM and found it met our 4 basic investment
criteria:
1. Clearly RYPM has enormous growth potential.
2. The company financials are strong.
3. RYPM is in a leading i! ndustry.
4. RYPM is offered at an ideal Buy Point.
Pets are big business and everyone is getting interested. In the space of the
past four weeks, the Today Show has run two segments,
the CBS Early Show each ran a segment, ABC World News Tonight ran a piece, US
News and World Report ran a piece about
Global Pet Expo and The Wall Street Journal ran an article on the industry.
This is in addition to the numerous articles run in
everything from the LA Times and Washington Post to the East Nowhere Gazette
Sun Journal.
The word is out and we all should be ready to take advantage of it.
Best Regards
Savvy Investor Editing Chairman
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