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Trading Reach’s rebound

Michael Taylor explains why shares in the long-suffering newspaper group could be about to benefit from a short squeeze
Trading Reach’s rebound

Reach (RCH) is the old Trinity Mirror, which was and still is a national and regional news publisher. It publishes its own content, as well as offering printing services to third parties. It also has a digital part of the business which offers job boards (one of these is called SecsintheCity) and digital marketing services (selling ads).

Many have compared it to Future (FUTR) but there are several key differences here. Firstly, Future has been able to grow and then monetise communities. The content that it produces has a much longer-term shelf life, with chief executive Zillah Byng-Thorne arguing that some of the best content is evergreen. The company is also operated in a way to monetise these brands and leverage the communities. Reach, on the other hand, sells ads, and produces a lot of clickbait – comparing the two businesses rather seems like comparing apples with oranges.

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