RILYL - B. Riley Financial: Bearish Narrative Now Dead On 10-K Filing And Rally I'm Buying RILYZ
2024-04-26 17:22:45 ET
Summary
- B. Riley Financial filed its 2023 annual report, debunking the bearish thesis that it would face delisting from the SEC.
- The short position in B. Riley Financial is expected to be unwound in the coming weeks and months.
- The company's liquidity and upcoming catalysts, such as a potential sale of its Great American Group business, are expected to strengthen its position.
The short interest in B. Riley Financial ( RILY ) was never sustainable as it was fully hinged on a single flawed point that RILY would never file its 2023 annual report on Form 10-K. The Los Angeles-based investment bank filed its 10-K before the market opened on April 24, sparking a remarkable and dramatic end to months of drama focused on a single point by bears that the company wouldn't file and would subsequently face delisting from the SEC. The bearish thesis now sits confidently in the realm of a eulogy for their positions, with the material short position in RILY set to be unwound over the coming weeks and months. I've been buying RILY's 2028 baby bonds ( RILYZ ) since the non-10-K filing narrative came to briefly cause them to trade at a nearly 60% discount to its $25 per share liquidation value. For some context, RILY held $232 million in unencumbered cash and cash equivalents at the end of its fiscal 2023 fourth quarter and faces no material debt maturities in 2024 and 2025. ...
B. Riley Financial: Bearish Narrative Now Dead On 10-K Filing And Rally, I'm Buying RILYZ