Financial firm B Riley (RILY) is getting whacked again today – the common shares are down $3.75 to be at $26.27 which is down $15 in the last 5 days.
Their baby bonds and 1 preferred issue are getting spanked as well–down 1 to 4%.
This is purely a trust issue – ‘we don’t trust you Bryant Riley’. I have written very extensively about the incestuous relations that B Riley has at play. They have had their fingers in so many marginals ‘deals’ including one of the most recent which was the Franchise Group ‘take private’. Other deals are with Babcock-Wilcox, Synchronoss Technologies, Maven (Now Arena) and many others. The latest is that Brian Kahn who was the found/CEO of the Franchise Group may have been involved (a co-conspirator) in a major securities fraud. That article is here.
My initial clue as to problems stems for a number of years ago – my wife worked for a company that James Heckman ran – here. More is here. B Riley stepped in to ‘bail out’ a new company Heckman founded (Maven). After that point Rily seemed to be involved in many very dicey financing – some of you know the story. They were involved with iMedia (which had a baby bond outstanding) that filed for BK in July.
If you are a holder be very careful—I’m not saying that where there is smoke there is fire–but there might be.
Of course all parties are innocent until proven otherwise.