PETM) and other struggling retailers. For starters, as this article is being written, retail sales from Kohl's ( KSS - Get Report), Costco ( COST - Get Report), J.C. Penney ( JCP) and Wal-Mart ( WMT - Get Report) are coming in way better than expected. This is also a positive for PetMed. Also, PetSmart, which we feel is not as strong a play as PetMed, has been gaining traction. In fact, a JPMorgan analyst recently upgraded shares of PetSmart, calling the pet products supplier "unpriced, insulated from inflation and poised to benefit from the federal government's economic stimulus package" PetMed has beaten earnings the past four quarters in a row and eight out of the last 11 quarters. The company has a strong balance sheet: $50 million in cash, zero debt, 60% quarterly earnings growth and 10%-plus profit margins. It is also worth pointing out that PetMed has a mammoth size short-position of 18%, or about 4.1 million shares. For all of the shorts to cover their bearish positions on a climb in stock price, it would take them about 19 days to cover. We feel there are lots of factors pointing to good things to come for PetMed. We'll see on Monday.