ReachLocal Shares Jump Up On News Of Acquisition
Warrior Trading | Jun 28, 2016 09:22AM ET
ReachLocal Inc (NASDAQ:RLOC)
ReachLocal, Inc. (RLOC), an online marketing solutions company yesterday announced that they are being acquired by Gannett Co., Inc. The deal states that Gannett will acquire the outstanding shares of ReachLocal at $4.60 per share making the total amount approximately $156 million.
h3 ReachLocal, Inc. and Gannett Co., Inc. CEO’s Comments/h3Sharon Rowlands, ReachLocal chief executive officer said,
“We are excited to bring new market opportunities and scale to Gannett’s growing and important digital business. We believe that this powerful combination will drive growth and allow us to accelerate innovation, enabling the best and most complete digital marketing solutions in the market today.”
Robert Dickey, Gannett president and chief executive officer said,
h3 RLOC Technical Analysis/h3“The acquisition of ReachLocal accelerates Gannett’s digital growth strategy, adding more than $320 million of annual digital revenue, the best digital marketing solutions technology in the market, and an outstanding and well-respected management team to Gannett’s digital business. ReachLocal’s focus on local small and medium sized businesses aligns well with Gannett’s local-to-national strategy and extends our reach into new local markets. This transaction represents an important step as we continue to transform our business to meet the changing needs of consumers and advertisers in today’s digital world. We are excited to welcome the talented ReachLocal team to Gannett and look forward to working with them to drive digital growth and create value for our stockholders.” Business Wire
RLOC opened trading yesterday at $1.68 which was up from the previous days trading of $1.60. RLOC closed trading yesterday at $1.69 and spiked up after market to $4.46, equivalent to a 163% increase from the closing price.
Taking a look at the daily chart we can see the last time RLOC traded above these levels was on November 3rd 2014 when it traded at $4.56. Taking a closer look at the daily chart we can see that with this gap up RLOC has shot past its previous 52 week high price of $3.20. RLOC has a float of 10.21 million shares and traded below the normal daily trading volume on Monday.
Get The News You Want
For trading purposes, I would like to see RLOC open trading on Tuesday above $3.55 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
h3 Company Profile/h3ReachLocal, Inc. provides a suite of online marketing and reporting solutions to small and medium-sized businesses. The company offers ReachSearch, a search engine marketing product; ReachDisplay, a display advertising product; and ReachRetargeting, which allows target consumers who have previously visited a specific client’s Website, either through a ReachSearch campaign or a ReachDisplay campaign.
It also provides ReachSite + ReachEdge solution that provides a professionally designed, mobile-responsive Website optimized to enhance lead generation; ReachCast solution, which helps local businesses build and optimize their Web presence for the purpose of driving online search discovery, powering reputation management, and managing social media marketing; TotalLiveChat widget that gives its clients the ability to interact with new Website visitors and collect their contact information; ReachListings solution, which provides a managed local listings service; and ReachSEO solution.
In addition, the company offers ReachEdge, a marketing automation platform that includes tools for capturing Web traffic information; and Kickserv, a cloud-based business management software for service businesses.
It delivers its suite of services to local businesses through a combination of its proprietary technology platform, its inside and outside sales force, and third-party agencies and resellers. The company operates primarily in in the United States, Canada, Australia, New Zealand, Japan, Germany, the Netherlands, Austria, Brazil, Mexico, and India. ReachLocal, Inc. was founded in 2003 and is headquartered in Woodland Hills, California. (Yahoo Finance)
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.