Long Position on BUFF @ $26.75 on 6/8/2016 (Momentum)

Blue Buffalo Pet Products, Inc. (BUFF) operates as a pet food company in the United States, Canada, Japan, and Mexico.

The company develops, produces, markets, and sells dog and cat food under the BLUE Life Protection Formula, BLUE Wilderness, BLUE Basics, BLUE Freedom, and BLUE Natural Veterinary Diet lines.

It also produces and sells cat litter under the BLUE Naturally Fresh line.

The company sells its products to retail partners and distributors in specialty channels, including national pet superstore chains, regional pet store chains, neighborhood pet stores, farm and feed stores, ecommerce retailers, military outlets, hardware stores, and veterinary clinics and hospitals.  

Shares have formed a bullish "flag" (shown in blue) after this recent IPO reported better than expected quarterly results. Sales jumped to $279.84 million as Gross margins widened from 40.01% to 44.04%.  Net Earnings came in at USD 37.33 million. Note the stock's 50-day moving average shown in green.

Higher share prices are expected for BUFF.

52-Weeks Trading Range: $15.19 - $28.80

Entry Point: $26.75

Stop Loss: $25.40

Target Price: $29.43

Updates

6/10/2016 2:02:12 PM

BUFF closed at $24.80.

Position closed on 6/10/2016 at price of $24.80 with a -7.29% loss in 2 days.

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