(BBY) The Art of Predicting Takeover Targets

I think we’ve all heard about the Best Buy (NYSE: BBY) takeover attempt by now. The story goes that Founder Richard Schulze offered to buy the company somewhere in the range of $24 to $26 per share. When the announcement was made a few weeks ago, Best Buy shares shot up around 13%. That’s because if the proposed deal was to go through, a Best Buy shareholder stood to earn a premium of around 47% from the previous week’s close. That’s a nice little return in such a short period of time. And it got me wondering… “Wouldn’t it be nice to get in on an acquisitioned stock before the takeover bid was ever announced?” Obviously, you could gamble and possibly get stuck with a dog of a company. That’s