Fools know that one of the best ways to get investment ideas is to look in your own life for things that you know about. And what do pet lovers know about? Pet stores. And what pet store comes to mind most often? PETsMART <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PETM)") else Response.Write("(Nasdaq: PETM)") end if %>.

Unfortunately, PETsMART is a great example of a company that seems like a good thing to its customers but isn't a good thing for its investors.

PETsMART is one of the leading superstore chains targeting pet owners. It owns 440 stores in North America and the UK, with prices typically 5% to 25% below most comparable retailers. From dog leashes to kitty toys to food for iguanas, it has most everything. It's easy to walk into one of its huge stores packed with llama and lizard loving consumers and get the impression that these guys can't lose.

But first impressions aren't always right.

Peaking in late 1996 at $29 7/8, PETsMART has since dwindled, closing yesterday at $10 1/4. What started the tumble and is it time to go bottom fishing?

Mark Weaver wrote about PETsMART in his Daily Trouble column back in May. He pointed out that the CFO left in January followed shortly thereafter with disappointing fourth quarter earnings. Also, "one-time charges" seem to be making frequent appearances lately. Things haven't gotten much better over the course of the year. Just last month PETsMART came in under estimates again for its second quarter totals. Third quarter numbers aren't expected until mid-November.

Check out the insightful discussion taking place on the PETsMART message board. (The bullish opinion seems to be winning out lately.) Pull up a chair with Snowball on your lap and read all about how some Fools think PETsMART may not be such a dog after all.

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