First ReachLocal entered into a partnership with Google (GOOG) under which ReachLocal is now considered a global premier AdWords partner.
Having managed distribution channels for several companies I know that adding a premier partner program to an existing partner program is not only a natural progression, but also common place in the industry. This is nothing special as bulls would like to believe. Google is likely to have tons of new premier partners in the future. The partnership of Google with ReachLocal is not exclusive. Further, there are tons of partners of Google that are not yet classified as premier but still compete aggressively with ReachLocal.
Investors seem to also be enamored with the headline that ReachLocal beats the earnings estimate by $0.16. However, a careful review of the earnings report shows that once past smoke and mirrors the earnings report is not exceptional. I have sold short the first tranche at $22.80 and will add to the short position as described in ZYX SHORT SELL CHANGE ALERTS and when all six screens of the ZYX Change Method are satisfied.
