B. Riley Stock Continues To Fall: What's Going On?
Portfolio Pulse from Adam Eckert
B. Riley Financial Inc (NASDAQ:RILY) shares continue to fall due to delayed quarterly results and an SEC investigation into risk disclosures. The stock dropped 52% on Monday and another 11.9% on Tuesday. The SEC is also investigating communications between founder Bryant Riley and business partner Brian Kahn. Preliminary results show significant non-cash losses, leading to an expected net loss of $435 million to $475 million for Q2. Short sellers have heavily criticized the company.
August 13, 2024 | 7:23 pm
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NEGATIVE IMPACT
Franchise Group Inc (FRG) is indirectly impacted by the SEC investigation into B. Riley Financial, which holds a 31% stake in FRG. The investigation includes communications between B. Riley's founder and FRG's former CEO. This could lead to negative sentiment around FRG.
The SEC investigation into B. Riley Financial, which holds a significant stake in FRG, could lead to negative sentiment around FRG. Investors may be concerned about potential fallout from the investigation.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
B. Riley Financial Inc (NASDAQ:RILY) shares are under heavy selling pressure due to an SEC investigation into risk disclosures and delayed quarterly results. The stock dropped 52% on Monday and another 11.9% on Tuesday. Preliminary results show significant non-cash losses, leading to an expected net loss of $435 million to $475 million for Q2.
The SEC investigation and delayed quarterly results have created significant uncertainty around B. Riley's financial health. The substantial drop in stock price reflects investor concerns about potential regulatory penalties and financial instability.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100