Regent Communications, Inc. (NDAQ:RGCI) shares rose marginally after Riley Investment Management disclosed a 6.5% stake in the company and sent a letter to the company's board demanding that Regent put itself up for sale. Riley reasoned that the valuation of the company's shares has been hurt by negative public sentiment to the terrestrial radio broadcasting market while the expenses of being a public company has been an excessive burden to the company given their size. Consequently, the hedge fund recommended that the company put itself up for sale, suggesting that a financial buyer could pay around $4.50 per share while a strategic buyer could pay as much as $6.00 per share - a 100% premium to the current market price. Given the company's recent slide and poor earnings, this alternative would seem to be in the best interest of shareholders. This makes RGCI a stock worth watching!

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