Why PetMed Express Inc.'s Shares Plunged in August
Shares of PetMed Express Inc. (NASDAQ: PETS) fell 23.7% in August, according to data provided by S&P Global Market Intelligence, after a notable short seller took dead aim at the stock. Research firm Aurelius Value laid out the case that PetMed's new growth products were actually aimed at distributing opioid drugs to people through animal prescriptions. If true, that would be concerning indeed.
The big plunge happened on Aug. 23 when short seller Aurelius Value issued a report raising concerns about how the "new generation of medications" PetMed has credited for its recent sales gains were in fact opioids that were being prescribed to pet, but being used by human addicts. Among the most concerning pieces of evidence in the report were screenshots of Google searches that showed 1-800-PetMeds as a top sponsored shopping result for those searching to buy opiates online for personal drug use.
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Source: Fool.com
