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. ...
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B. Riley Financial: Bearish Narrative Now Dead On 10-K Filing And Rally, I'm Buying RILYZ