And boy, were we right…
Today (Feb. 23, 2018), General Mills Inc. (NYSE: GIS) announced it will pay $8 billion for Blue Buffalo, which is $40 per share.
When we published our report before the Blue Buffalo acquisition, the BUFF stock price was $33.62.
As of 8:30 a.m. this morning, the BUFF stock price jumped to $40 per share.
That's a 19% gain from when we first recommended BUFF stock a month ago.
I was bullish on Blue Buffalo stock because the company was still in the early stages of just how much revenue it could generate.
Right now, the company feeds just 2% to 3% of the 164 million pets in the United States, according to its website.
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According to my back-of-the-envelope calculations, Blue Buffalo is generating annual sales of $345 per customer.
If Blue Buffalo eventually reaches just 5% (8.2 million) of all U.S. pets, that could push its revenue all the way up to $2.8 billion, a 153% increase over 2016 U.S. sales.
General Mills obviously liked that potential, too.
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And until our next IPO research story, we had to make sure our readers could access all the details about another potential profit opportunity…