Considering the stock is up nearly 100% today, I think it’s safe to say investors are relatively pleased with SPAR Group, Inc.’s (NASDAQ:SGRP) announcement yesterday.
What Happened?
Currently, SPAR Group, Inc. is trading at $2.43, which puts the stock up $1.19, or 95.65%. The stock can be seen hovering between being up 95% and 100%, so it will be interesting to see where it sits by the time the closing bell rings.
Though the White Plains, New York-based company did not disclose anything new today that would explain the jump, the business technology and retail merchandising company did announce yesterday, Thursday, January 11, that it was going to be making a massive expansion of its domestic businesses. How? By acquiring a 51% interest in three companies.
Investors seem to be on board with this decision, which is great news for the company, as the optimism of the market has allowed it to reach a new 52-week high today. Over the course of the past 52 weeks, SPAR Group, Inc. has traded between a range of $0.87 (low) and $1.66 (high).
What Companies is SPAR Group, Inc Acquiring?
Resource Plus, based in Jacksonville, Florida, which is the largest city in the continental U.S., is the first company that SPAR Group, Inc. will be acquiring a 51% interest in.
The Florida-based company, under the leadership of CEO Richard Justus and Vice President Joseph Paulk, is primarily known for its business and marketing services in which it offers to both the retail merchandising industry and the retail manufacturer’s industry. However, it also provides garden and lawn services.
Not only will SPAR Group, Inc. benefit immensely from furthering its domestic businesses, Resource Plus is bound to reap some benefits from the acquisition as well, with Mr. Justus stating that its newfound partnership with SPAR Group will “deliver new value-added enhancements for our customers.”
Who’s next? That will be Mobex of North Florida, Inc., in which SPAR Group will also be acquiring a 51% interest in. Reportedly founded in 2008, Mobex of North Florida is known primarily as being a manufacturer that deals with retail fixture mobilization systems.
Interestingly, this is yet another Jacksonville, Florida-based company. Needless to say, Andrew Jackson would be proud if he could see the city that was named after him thriving.
Last but not least, SPAR Group, Inc. will be acquiring a 51% interest in Leasex, LLC.
What Does the Future Entail?
It seems to me that expanding its business will provide only positives for all involved, however, only time will tell as SPAR Group, Inc. might run into a few roadblocks along the way.
It will be interesting to see if, during the coming weeks, the stock will continue to climb as investors look forward to more announcements regarding the expansion.
What do you think? Do you think the acquisition and expansion are worth it, or should SPAR Group, Inc. stay the way that it is?
Featured Image: twitter
