ReachLocal, Inc. | $RLOC Stock | Shares Jump Up On News of Gannett To Acquire The Company

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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.  

 

ReachLocal, Inc. and Gannett Co., Inc. CEO’s Comments

Sharon 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, “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 Technical Analysis

RLOC Chart

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. 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.

 

Company Profile

ReachLocal, 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

 

 

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Legal Disclaimer – This is not meant to be a recommendation to buy or to sell securities nor an offer to buy or sell securities. Before selling or buying any stock or other investment you should consult with a qualified broker or other financial professional. The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author has no business relationship with any company whose stock is mentioned in this article nor is receiving compensation from any of the companies mentioned.

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