Shares of Del Monte (NYSE: DLM) are up over 9% in early afternoon trading. And the volume is doing gangbusters business. The market is responding to the company's fourth-quarter results. The numbers did tell an overall fun story.

To begin with, revenues saw a big jump of 20%. As many news items have pointed out, price increases helped out. It should also be pointed out that the company's press release indicated that an extra week skewed things a bit. That's okay, though, it was still a good top-line performance. Earnings per share from continuing divisions came in at $0.35, which meant that Del Monte grew the bottom line by 75% (a couple elements affecting the perception of this profit expansion was a better tax situation linked to a positive change in California tax code and a $0.04 per-share transformation expense recorded in Q4 2008). Analysts said the company might earn $0.26 per share. That's a pleasant difference, isn't it?

Quarter after quarter, why does Del Monte Foods Company (NYSE: DLM) continue to blame its woes on Charlie Tuna? If there is a brand that is a drag on earnings, reinvigorate the brand, sell the brand or terminate the brand. Del Monte needs to do one of the three with its Starkist Tuna. Right now, Del Monte's bottom line is being carried by non-human foods, specifically Meow-Mix and Milk Bone. Net sales for pet products increased 22% to just about $309 million in 1Q 2008, out of a total of $754.5 million in net sales. This represents net sales growth of 12%, none of which is reflected in increased earnings. Diluted EPS were $0.18 in 4Q 2007 but only $0.02 in 1Q 2008 despite the fact that the previous quarter had higher restructuring costs than did 1Q 2008. Administrative expenses continue to increase, as does interest expense. A significant portion of the pet food acquisitions was financed by incurring more debt. FY2008 interest expense will be in the $150-$160 million range (although management predicts lower interest rates based on less than no evidence) and capital expenditures will run between $100 million and $110 million. Operating income in the consumer products division declined by 46% to just under $14 million.

Do not look for improved earnings in 2Q 2008.The company has already stated FY 2008 earnings will be at the low end of guidance, $0.70. Del Monte will continue to face rising costs for raw materials. Management has not indicated any cost-cutting strategies, preferring to continue to pass along increased costs to consumers. But branded products are already losing market share to generic brands. Wal-Mart (NYSE: WMT) currently accounts for 30% of Del Monte sales. Wal-Mart is focusing more on its own Great Value brand, leaving Del Monte with the problem of how to replace lost shelf space and hence lost sales. The stock has done nothing since opening the year trading at $11.06. It currently trades at $10.60.

I'm sure there are many investors who would rather forget Pets.com. The 1990s company has become the poster child of the lunacy of the dot-com era. Apparently, the only profitable product of Pets.com was the sock puppet.

But I guess time heals wounds. That is, a private equity firm, LLR Partners, has plunked down $10 million in Pet Food Direct. Yep, this is an online pet retailer.

Actually, the company was started about ten years ago and has been tracking nicely. Besides having more than 11,000 products, there are also useful online guides on pet health/nutrition and an Auto-Ship program.

In fact, the pet industry is about $40 billion per year. So, there's definitely room for growth.

I still think it will take time to become a big player in the ecommerce space, though. I also think it's a good bet that Pet Food Direct isn't going to be spending big bucks on Super Bowl commercials.

To see more venture capital fundings, click here.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Call me old-fashioned but there's something about the proposition of communists manufacturing goods for sale to the free world that just goes against my grain. It's bad enough when they send us electronics with limited usefulness and lifespan, or tools made with sub-par castings and motor windings, but when they begin to send out consumer products with the potential to kill, that's where the line has to be drawn. Sorry if I offend anyone, but in my opinion it may be time for a Big China Smack Down. Actually, I'm not sorry if that offends you.

If an American company had included a poisonous substance in a food product ingredient that then killed and sickened potentially thousands of domestic pets, as the Pet Connection Blog reveals a Chinese company has done, there would have been such a tumultuous media outcry that almost certainly that American company would have been forced to close its doors for good. What has been done in our interest to deal with the Chinese company that threatened our very lives? My guess is just about nothing.

If an American company had included a poisonous substance in an oral hygiene product with the potential to destroy human organs and eventually kill, as the Bosque Boys Blog discusses that Chinese companies have done, once again the media outcry would resound across the globe with incredible force. That American company would be immediately locked down while inspectors and investigators scrutinized every square foot of its facilities and every digit of its business records. What is happening in regard to the Chinese toothpaste debacle? Oh yeah, they closed up a cottage workshop with about 30 employees and they're conducting a "probe." How nicely communist of them.

China should feel the brunt of their sloppiness. Their lack of real-world diligence should cost them billions of dollars. Instead, our mainstream media outlets play down these situations, dilute the focus, meander around the facts, and let the whole thing die out, while a few Chinese managers get tossed into the street and everything returns to business as usual. That's my prediction for how this shall all play out.

As I leave the subject here for you to form your own opinions on, I'll give you one more thing to think about: Do you really think our Chinese friends manufacture toothpaste, antifreeze, and solvents in the same facilities?

Hey China, give me a break.