From Bloomberg: B. Riley’s Belated Data Boosts Stock But Fails to Quiet Skeptics Auditor’s criticism punctuates investment bank’s annual report Firm re-asserts no entanglements in key client’s legal woes B. Riley Financial Inc. sent its stock soaring by finally delivering its overdue annual report, which provided fuel both for fans of the boutique investment bank and skeptics who contend its accounting is deeply flawed. Auditors for Los Angeles-based B. Riley cited various material weaknesses in the company’s internal controls, and some of the previously reported data was revised, according to regulatory filings. https://tinyurl.com/240424bbrily This is a gift link. A Bloomberg subscription is not required. The link expires in seven days.
It's so me...I can see the picture, but can never get the timing right. In 2000 I could see the dot.com bubble before my eyes. I bought a put...Waited 6 months and it expired worthless!! Two months later it imploded!! I never pulled the trigger on this stock...Wish I had.
I looked through the B. Riley website just now. They talked about investment banking a lot...That and many other things. What I was looking for was some type of mention of FDIC anywhere!! Nothing that I saw... That would have been a nice layer of protection (and accountability) that may have spotted red flags. Even if it had a small bank, there would/could have been tighter audits of their books...
This is me on the timing!! Get the correct results, but bad on the timing... (Bloomberg) -- B. Riley Financial Inc. suspended dividends on a pair of its preferred shares, holding off on cash payments to some investors while it prepares to pay off another set of notes coming due next month. The deferral affects B. Riley’s 6.875% Series A and 7.375% Series B preferred stock, according to a statement Monday. The unpaid dividends will continue accruing until they’re paid in full. Meanwhile, the company plans to redeem its 6.375% notes maturing Feb. 28 on schedule. Chairman Bryant Riley has put a priority on paying down debt as his firm seeks to recover from a string of losses and write downs on soured investments. The biggest was the November bankruptcy of Franchise Group, a collection of retail brands that was among B. Riley’s biggest holdings. A bankruptcy judge has said Franchise Group’s equity appears to be worthless. “The preferred dividend was not suspended to preserve cash,” according to a representative for B. Riley, who declined to elaborate on the reasons. Common shares of B. Riley fell about 2.5% to $4.88 at midday in New York, after sagging as much as 7.4%. They briefly topped $40 in April 2024. Overdue Numbers B. Riley has repeatedly missed deadlines for filing financial results, with third-quarter results still overdue, and its shares risked being delisted by Nasdaq. The firm has said it expects to avoid that outcome. Last year, bankers began demanding more oversight of B. Riley’s finances, including regular updates on liquidity and cutbacks on borrowing. An update released Jan. 14 — the first look investors have had into the company’s official financials in more than six months — said the company had $257 million in cash on hand at the end of 2024, including funds to pay off the notes due next month. A regulatory filing showed there was enough liquidity to suffice for at least the next 12 months. The filing for the period ended June 30 also showed B. Riley suffered a second-quarter loss of more than $435 million, as revenue shrank to $148 million from $406 million a year earlier. The company and Riley have been responding to subpoenas from the US Securities and Exchange Commission on topics ranging from its dealings with Franchise Group, transactions in an unrelated public company’s securities and a personal loan to Riley secured by his pledge of common stock, according to the midyear filing. Riley and his firm are cooperating with the investigation, and no charges have been lodged against them. The stock had a 52 week high of over $40.00 a share... Someone made a lot of money going long and then shorting this baby...