What is happening?

• The Biden administration is pushing cannabis reform. Millenials and Zoomers are drinking less and using more Cannabis. Reference 1 Reference 2
• In August 29, 2023, The Department of Health and Human Services (“HHS”) recommended that DEA reschedule marijuana to Schedule III. Reference
• The DEA has just published an NPRM (Notice of Proposed Rulemaking) to re-schedule Cannabis from a Schedule 1 substance (no accepted medical use, high potential for abuse) to Schedule 3 (Accepted medical uses, low potential for abuse). Reference Actual document

What are the consequences of this?

• If moved to Schedule 3, although NOT federally legal, section 280E of the IRS code no longer applies. This means companies will be able to DEDUCT EXPENSES ON THEIR TAXES. This is not an assumption, this is on page 80 of the document linked above. This has potentially massive Free Cash Flow implications for these companies. Reference 1 Reference 2 Forbes article from March

https://preview.redd.it/s7bykozrze1d1.png?width=1162&format=png&auto=webp&s=8c4d5ffe4eb4553c07c692a23c59c070cab577db
DESPITE NOT BEING ABLE TO DEDUCT EXPENSES IN THEIR TAXES:

• GTI had Free Cash flow of 6.6 Million three quarters ago.
• Free Cash flow of 34.6 Million two quarters ago.
• Free Cash Flow of 69.3 Million last quarter.
• GTI is profitable with Earnings Per Share (EPS) of $0.33 three quarters ago
• EPS of 0.05 two quarters ago
• EPS of 0.15 last quarter
• $223 Million in Cash versus $175 Million in current liabilities as of last Quarter
• GTI Financials - Yahoo Finance
• GTI is buying back $100 Million dollars worth of its shares, $40kk down $60kk to go. Press Release (under Capital Allocation)
• GTI is the top holding of the AdvisorShares Pure US Cannabis ETF at 23.39% of holdings as of last Friday - Reference
• GTI is diversified across the US, operating 20 manufacturing facilities, 92 open retail locations and operations across 14 states.
• GTI has arguably the best branding and online presence amongst its peers. Look at their website and Instagram

What are some risks and common misconceptions regarding the move to Schedule 3 and GTBIF?

• Contrary to popular belief, the move to Schedule 3 does NOT open the door to credit card transactions and large institutional capital (Big banks) - Reference
• For the same reason, it is uncertain and unlikely the move to Schedule 3 could mean uplisting. I don't need to tell you that uplisting would be an insane surge of volume going from the CSE to the NYSE or NASDAQ.
• Ben Kovler, the CEO, is a bit unhinged on Twitter, for better or worse.

Afternoon all,
I thought it might be fun to try and take the last three weeks and have a recap of the data and news surrounding RILY. I just searched this sub and news outlets and such for the last 3 weeks and took notes then fed them into an AI software asking it to summarize everything. In no way is this Financial Advice just a fun task.
"The financial landscape for B. Riley Financial, Inc. showcases a dynamic narrative of operational resilience and strategic positioning. The company's recent activities reflect a strategic focus on managing debt obligations effectively while optimizing business segments for sustainable growth. The strategic review process for Great American Group retail liquidation and appraisal businesses is progressing, indicating a commitment to enhancing operational efficiency and value creation.
In the earnings summary, a net loss of $51 million was reported, primarily driven by investment-related losses and professional services expenses. Despite these challenges, the company's strategic initiatives and operational performance remain robust, as highlighted in the earnings call. Executives Bryant Riley and Tom Kelleher emphasized the company's operational excellence and strategic direction, underscoring a commitment to shareholder value and sustainable growth. The company's strategic reviews and commitment to shareholder value remain steadfast amidst market volatility caused by short manipulation.
Furthermore, the full redemption of $25,000,000 aggregate principal amount of 6.75% Senior Notes due 2024 signifies a proactive approach to managing debt and strengthening the company's financial position. This strategic move aligns with the company's focus on optimizing its capital structure and enhancing financial flexibility.
Overall, B. Riley Financial's narrative is one of resilience, strategic foresight, and operational excellence in navigating market dynamics and challenges. The company's commitment to financial prudence, strategic reviews, and operational performance positions it well for sustained growth and value creation in the evolving financial landscape."
Below is the data the AI used to create the summary. Just copy and pasted from a very quick and crude gathering of information into a word doc. I also enjoyed the earnings summary the AI did. The last line made me feel happy thoughts. - In summary, B. Riley Financial's first-quarter 2024 results underscore its strong operational foundation and strategic foresight, positioning it well for future growth and shareholder value creation.
1. Cohodes being loud and classless examples
https://preview.redd.it/xymj94vp5f1d1.png?width=637&format=png&auto=webp&s=3d9f18f4f877f7fb518039bc78198e77e3fcd190
https://preview.redd.it/bxacg0bp5f1d1.png?width=975&format=png&auto=webp&s=9a4eba6a4a39457cc47661be5836008976b37fc6
https://preview.redd.it/q5kdr5qo5f1d1.png?width=975&format=png&auto=webp&s=14dcb5473ed7dcac4646eaba2b983806f32bd875
https://preview.redd.it/ky1hlc1o5f1d1.png?width=789&format=png&auto=webp&s=4c603719820d06ea91d9181ad3c41734a603b795
https://preview.redd.it/soco7bjn5f1d1.png?width=969&format=png&auto=webp&s=dfbcf20f984e391c51afcc89e46597d1d9dff6ad
https://preview.redd.it/pwbnnwwr5f1d1.png?width=975&format=png&auto=webp&s=fe06146b727540c291825eda8db5f33b11e9e992
2. Discussion about FUD and shorts deception
I see the shorts (Marc Cohoded and Co.) are still at it, trying to l use a fake psychological twist to cause doubt. Let's stick to the facts and let the price go where it will in the long term. Short thesis was and is there was fraud, both proven wrong by independent investigation and a clean independent audit if the 10-K and now 10-Q. You can slap that one around anyway you want, but both came up clean. First, they have stated their intentions of a sale of a carried undervalued asset (Great American) by a third party for a massive realized gain. Good for the investors and bond holders as they said they would use funds to deleveverage the balance sheet and buy back stock which already has very little float. Second, I have never seen a company that is paying dividends go under whith out, completely eliminating the dividends first (RILY still pays a dividend and baby bonds are all current--none are in any default). Third, business has been good with lots of new hires, new capital makets raises and fees and their business seems to be thriving. Shorts will try to mislead all of us with their lies and deciept but if we hold strong I believe that the stock will go to at least 50 ish in the short term where they did their secondary. I believe at that point, RILY may run into a bit of resistance. However, a squeeze could easily send us through that to new highs. Patience is the key as they have stated all this in their press releases in the recent past. If we al on this sitel just buy 100 to 1000 shares on Monday and hld through the 29th to get the dividends. this will rocket to new heights. This is not a recommendation, simply my thoughts. Do your own due diligence.
3.Stop lending shares=pain for shorts = short squeeze
If all longs can stop lending shares at least I believe we can cause shorts to cover. There is no valid short narrative, both longs and shorts know this. Now it’s purely who can hold out longer. Shorts have been very active as of late trying to push share price lower and with many of us loaning shares out we are actually helping the shorts hurt us. I believe if we stopped lending out shares borrow rate skyrockets and that added cost combined with dividend and gradual upward movement will force shorts to cover. Granted news release can help but we don’t need news we just need to stop lending and wait and see.
4. Link to short sale volume post https://www.reddit.com/RILYStock/comments/1ctwe9q/smoking_gun_thursday_dropped_because_shorts/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button
https://preview.redd.it/hopdxkbt5f1d1.png?width=975&format=png&auto=webp&s=3945adf69a00addb0c2da4ea0c26b2a4de2749b3
5. Article showing RILY coming back https://www.investmentnews.com/broker-dealers/news/b-riley-bouncing-back-after-tough-winter-253448
6. Rily - Day 3 of short attacks - There's a positive
Our favorite shorts cohodes&co is on overdrive releasing as much fake accusations as possible, they now have been adding a lot to their position at a higher price point with shares in the 30s, now the shorts cost basis has gotten worse for them. With more shares at a worst cost with dividends coming due as well as borrow fees , shorts have less wiggle room especially if stock goes to 40 again. Now at 40 I believe they will be losing money. With insiders hopefully buying soon and the company continuing their share buy back program , that can lead to upward movement in share price leading to the “squeeze “.
7. $RILY Earnings Summary
Not financial advice.
It was an interesting investor call, an almost boring call which was refreshing. The company had a net loss of $51m driven by non-cash items including $29m unrealized loss on investments and a $30m fair value adjustment on their loans.
Cash flows were pretty good, with operating cash flows of $135m and adjusted operating EBITDA of $66m.
Targus and American Freight contributed nothing this quarter, both companies are historically strong businesses but have been working through a business cycle post-COVID after many Americans bought the things they needed. Those companies should improve in the next year.
The company previously announced a potential sale of Great American Group. Q-1 earnings for that segment increased to $35m of EBITDA, so at 10-12x a potential sale is looking like $350-$420m. On the call they said that is expected by early Q3. They also mentioned possibly looking at a sale in their Brands division later this year with the goal of retiring their discounted debt, citing it as an opportunity.
The short thesis crumbled last month with a clean 10-K and two internal investigations which added an additional $7m in expense but presumably were quite thorough and completely debunked claims by bears.
There are no shares available to borrow per Fintel:
https://preview.redd.it/ukhk0tou5f1d1.png?width=975&format=png&auto=webp&s=0622973216e0293d7f2699c1b6eee3216824305e
And short interest remains at approximately 65% with 9 million shares short, though the retail float is thought to be much smaller, maybe 2m shares.
The company has $34m available at quarter end for buybacks from a previously approved program.
I see value here, and I liked what I heard on the call.
8. Misconceptions - Rily Share Structure
[THIS POST IS FOR EDUCATIONAL PURPOSES ONLY] mumen_rida
There seems to be a lot of confusion about the company’s share structure and I would like to use this post to help not only my own understanding but also help others. It’s a bit confusing but let’s tackle it together.
I got this information from marketwatch: Total Float = 30 million shares Public float = 16 million shares Shares sold short = 9 million shares % of public float sold short = 56.38%
According to fintel: Institutional ownership = 14.18 million shares
So let me get this straight, there is 16 million shares in the public float and institutions own 89% of that (14.18 million shares). So that would mean retail investors collectively only have about 1.82 million shares to trade around amongst ourselves. Let’s call that retail float.
So, retail float = 1.82 million shares.
Let’s wrap up all the most important information (imo) regarding the current share structure and please correct me if any of the information I presented here today is false:
Total float = 30m
Public float = 16m
Shares short = 9m
Retail float = 1.82m
Where I think it gets the most interesting is when you divide shares short by retail float. 9/1.82= 4.95 or 495% of retail float.
Hope this helps clear up any confusion regarding the share structure.
REPSONSE TO THIS BELOW
EnvironmentalBreak48
•3d ago
THIS RESPONSE IS FOR EDUCATIONAL PURPOSES ONLY. NFA. Do your own DD, make your own decisions.
Based on OP calculation.
1. Total Float: About 30 million shares.
2. Public Float: 16 million shares.
3. Shares Sold Short: 9 million shares.
4. % of Public Float Sold Short: 56.38%.
5. Institutional Ownership: 14.18 million shares.
6. Retail Float: 1.82 million shares (calculated as Public Float - Institutional Ownership).
Given this information:

Understanding Short Interest

· Shares Sold Short: About 9 million shares.
· Retail Float: 1.82 million shares.
· Short Interest as a Percentage of Retail Float: 9 million shares/1.82 million shares≈495%
This high percentage indicates that the short interest is nearly five times the available retail float, which could lead to a short squeeze if investors hold onto their shares and/or demand increases.

Days to Cover (Short Interest Ratio)

The Days to Cover metric gives an estimate of how many days it would take for short sellers to cover their positions based on the average daily trading volume. Here’s how to calculate it:
1. Determine the average daily trading volume (ADTV): This information is usually available on financial websites like MarketWatch or Yahoo Finance. Let’s assume the ADTV is 1,000,000 shares (this is an example, you should use the actual ADTV for a more precise calculation).
2. Days to Cover: Shares Sold Short/ADTV
Using our example ADTV: Days to Cover=9,000,000 (short shares)/1,000,000(Avg. Daily Volume)=9 days Days to Cover

Potential Implications

· High Short Interest Ratio: A high Days to Cover ratio suggests it would take a significant amount of time for shorts to cover their positions, which can lead to increased volatility.
· Potential for a Short Squeeze: With a high percentage of the retail float sold short, if retail investors decided to hold their shares and the stock price rises, short sellers may be forced to buy back shares at higher prices, leading to a potential short squeeze.
· Limited Retail Float: With only 1.82 million shares available for retail trading, any significant buying pressure from institutional investors and/or retail investors it could quickly drive up the stock price.
9. Why Even the Joker Thinks You’d Be a _____ For Not Taking A Look at RILY Stock
Batman here. You might know me as the Dark Knight, the Caped Crusader, or the guy who really, really, really wants to own a spaceship. Today, straight from the Batcave, lets talk about something as exciting as racing the Batmobile or the return of Roaring Kitty—RILY stock.
First off, let’s talk numbers, because even a superhero knows the importance of a strong financial foundation. RILY has been buying back shares like Alfred buys Bat-gadgets—strategically and frequently. This move isn’t just a nifty trick; IMO it’s a signal that RILY is confident in its value. When a company buys back its own shares, it’s like Batman investing in more Batarangs—it’s a smart play that shows belief in future performance.
But that’s not all, folks. The recent buzz around RILY isn’t just cat signals in the sky—it’s grounded in solid developments. RILY had to work hard to file their 10K after all the mudslinging from the shorts, but got it done. The first big catalyst domino to fall.
Now, let’s get to the juicy part—earnings and dividends. RILY’s about to drop their Q1 earnings tomorrow, and you know what that means? Dividends! That’s right, folks. RILY is likely to declare a dividend, that our short friends will be paying. Dividends are like the Batmobile’s turbo boost—an extra kick that gets you excited and propels you forward. Plus, once they file their Q, a few days later insiders should be able to start buying again. Form 4s anyone?
Here’s where it gets really interesting: meme stocks are back with a vengeance, wow talk about a left jab, and shorts are on their heels. The RILY squeeze might start very soon or it might not, but with shorts potentially facing margin calls due to price movements in various holdings, and especially if they’ve been shorting RILY all the way down it has not been a good week for the shorts so far. Just look how RILY stock popped this morning on about 200k in volume.
To add insult to injury, to date, NONE of the short thesis has come to fruition or has been confirmed by independent information. They’re in quicksand, and it’s time to gas up the rocket. There are still several catalysts that may come into play here:
Q1 Earnings Release: Scheduled to be filed tomorrow, providing insights into the company's recent performance. The deal flow on their website was up YoY.
Dividend Announcements: Anticipated dividends right around the corner.
Insider Buying: Once the Q1 earnings are filed, insiders should be able to buy stock again, expect to see some Form 4s in very short order.
Sale of Great America Division: If RILY sales Great American, they have said the proceeds from this sale are expected to be used to reduce debt and fund further stock buybacks, potentially enhancing shareholder value.
Low Float: With a limited number of shares available for trading, increased demand can lead to significant price movements.
Buybacks: Ongoing buybacks can continue to support the stock price.
Meme Stock Momentum: With meme stocks making a comeback, there's increased interest and activity in stocks that are short and that could drive up RILY’s stock price.
Short Squeeze Potential: Low public float, company buybacks, insider buying…mix that up and you have the recipe for a potential squeeze.
Roaring Kitty's Return: The return of Roaring Kitty, a key figure in the meme stock movement, brings renewed attention and excitement to the stock market in general.
And, guess who just chimed in on RILY earlier today? That's right—JeffAmazon from the GameStop meme trade and Netflix documentary! He made a little tweet tweet on $RILY
Additional Catalysts: What do you all think…..
Stay vigilant, stay smart, and just my thoughts—do your own due diligence and make your own decisions. NFA.
10. FAKE ARTICLE BULLSHIT FUD…………
Well, IMO even Stevie Wonder can see that the latest article on FRG is just another hatchet job. IMO the problem with creating a narrative is that the facts can’t keep up, and boy, did they fall behind here.
RILY conducted not one, but two independent investigations and found zilch issues with its FRG investment or loans made to Kahn. And guess what? No connection with Prophecy either. FRG did their own investigation and also found no connection with Prophecy. So, to call the relationship between RILY and FRG controversial is like calling a puppy dangerous—laughable.
In RILY's 10k, they marked up their FRG investment FMV $281 million to $286 million…
FRG's FY23 financials are public, and the attached table shows the maturities of their debt. In 2024, about $10.5 million in debt is maturing. Big deal. Looming debt? Hardly. The real kicker is in 2026 when about $1.5 billion of debt matures—not this year, not next. LOL.
The FRG financials clearly state they were in full compliance with their debt covenants in FY23 and fully expect to be in compliance in FY24. Yet, "the people" say FRG is down double digits in Q1. Funny timing with RILY's Q1 financials coming out on Wednesday, huh? And by the way, FRG's adjusted EBITDA for Q1 FY23 was $66 million, not the $62 million the article claims. Why not use the actual FRG public company number? Maybe because when you're rushing to write a hit piece, you just pick random numbers.
https://www.globenewswire.com/en/news-release/2023/05/10/2665414/0/en/Franchise-Group-Inc-Announces-First-Quarter-Fiscal-Year-2023-Financial-Results.html
So, according to the article, FRG is down 63% in revenue ($66 million vs. the alleged $25 million).
Sure, FRG sold Badcock and Sylvan Learning, so they might be down YoY, but down 63%?
FRG sold in FY24 Q1 Sylvan for $185 Million cash….and they’re worried about paying $10.5 million in long term debt due this year. Got it.
https://www.franchisetimes.com/franchise_mergers_and_acquisitions/unleashed-brands-buys-sylvan-learning/article_a568813e-d4c7-11ee-bb32-1f85230cfdda.html
https://preview.redd.it/lry689p16f1d1.png?width=975&format=png&auto=webp&s=0714b3b378abb528f0abb470ade0deb3d34c2d39
11. Post talking about NT-10Q•
https://www.reddit.com/RILYStock/comments/1crb1gp/new_filings_nt10q_13fh?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button
12. Friendly PSA: Manage your emotions
Great Post Below talking about managing emotions during this trade.
https://www.reddit.com/RILYStock/comments/1cqzskg/friendly_psa_manage_your_emotions/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button
13. RILY RS Article 76 to 83
https://www.investors.com/ibd-data-stories/b-riley-financial-shows-rising-price-performance-with-jump-to-83-rs-rating/
B. Riley Financial (RILY) saw a welcome improvement to its Relative Strength (RS) Rating on Thursday, with an increase from 76 to 83.
IBD's proprietary rating tracks share price performance with a 1 (worst) to 99 (best) score. The score shows how a stock's price performance over the trailing 52 weeks stacks up against all the other stocks in our database.
Over 100 years of market history reveals that the stocks that go on to make the biggest gains typically have an 80 or higher RS Rating as they begin their biggest climbs.
Now is not an ideal time to jump in since it isn't near a proper buy zone, but see if the stock manages to form a base and break out.
The company showed 0% EPS growth last quarter. Revenue rose -9%. The company is expected to report its latest earnings and sales numbers on or around May 15.
The company earns the No. 24 rank among its peers in the Finance-Investment Banking/Brokers industry group. Interactive Brokers (IBKR), Piper Sandler (PIPR) and Ameriprise Financial (AMP) are among the top 5 highly rated stocks within the group.

14. Announcement of 2024 Annual Meeting June 21st
https://www.sec.gov/ix?doc=/Archives/edgadata/0001464790/000121390024041725/ea0205510-01.htm
15. Repost: $RILY DD: The real price potential...when the stock is a solid/growing company (not just a squeeze).
https://www.reddit.com/RILYStock/comments/1cnzff7/repost_rily_dd_the_real_price_potentialwhen_the/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button
16. $RILY- “They can win by doing nothing
12 days ago
Outrageous_Appeal_89 “
Whitebrook capital assessment addressing cohodes&co BS at the peak of their false accusations and in a polite way stating short funds were making things up (misinformation & manipulation ). It seems $RILY is executing on some of the recommendations Whitebrook capital had - share buy back and bond buy back has been executed and continues to be executed on. Whether you invest in $RILY for the long term prospects or the short squeeze that can be triggered any day as lie after lie is exposed. Bottom line is the fair value of $RILY is a lot higher then where it currently trades. We will get a better idea whether share prices deserves to be in the 50s or 60s as we get an update on GAG valuation. Seems many here forget that $RILY creates value by turning companies around and then monetize, this process takes time , they have been able to do this successfully, repeatedly over the years.
https://preview.redd.it/uiisruq36f1d1.png?width=792&format=png&auto=webp&s=e6c32c04877ae21b51cb8a99cee0aef17cdb32c4
17. 3 Videos from Value Don’t Lie on Youtube talking about Financials of RILY and overall company valuation
https://www.youtube.com/watch?v=kRenvff8duE&t=1s
https://www.youtube.com/watch?v=EoaCZw7AmpA&t
https://www.youtube.com/watch?v=7_Ayoox3fvM
18. Getting around the NBBO and Longing the Box
So let this sink in… the market opens and in 5 minutes we rally to $34.42, then over the next 15 minutes we drop to $28.80 at which point SSR was triggered and sell volume slows WAY the hell down. That drop was ALL short sellers and NO longs selling shares (otherwise the sell-off wouldnt have stopped literally minutes after SSR triggered). NOW, what the scumbag shorts are doing is going Long Against The Box.
19. Steve Cohen and Point 72 buy 24,917 shares long on May 15th
https://preview.redd.it/fhdhyco46f1d1.png?width=975&format=png&auto=webp&s=6600f6a9a3f0bc5bc8823cddb5f52defdf282063
20. Summarize this earnings call and keep pertinent quotes and data in the summary.
https://filecache.investorroom.com/mr5ir_briley2/925/RILY_1Q24_Earnings_Release_vFINAL.pdf
Chat GPT Summary of the full report below
B. Riley Financial, Inc. (NASDAQ: RILY) reported its first-quarter 2024 financial results, showcasing resilience and operational strength despite facing challenging market conditions and unique internal events. Here's a summary with a positive outlook:

First Quarter

2024 Highlights:

1. Quarterly Dividend Declaration:

• B. Riley declared a quarterly dividend of $0.50 per share, reflecting the company's commitment to returning value to shareholders. The dividend will be paid on or about June 11, 2024, to shareholders of record as of May 27, 2024.

2. Operational Performance:

• Despite reporting a net loss of $51 million, the company's core operating businesses demonstrated solid performance. This loss was primarily due to non-cash, unrealized investment losses.
• Total revenues for the quarter were $343 million. Operating revenues, excluding investment-related impacts, were $379 million, showcasing the underlying strength of the company's operations.

3. Strategic Debt Management:

• B. Riley successfully retired $115 million of its 6.75% 2024 Senior Notes and repaid $57 million of bank debt facilities and notes payable. This strategic move highlights the company's focus on strengthening its balance sheet and reducing interest expenses.

4. Cash and Investments:

• As of March 31, 2024, the company had total cash and cash equivalents of $191 million and total cash and investments of $1.61 billion, providing a robust liquidity position to support ongoing operations and future investments.

5. Segment Performance:

• B. Riley Advisory Services: Delivered its strongest first-quarter results in the firm's history, driven by increased demand for appraisals, bankruptcy restructuring, litigation consulting, and real estate services.
• B. Riley Securities: Benefited from a steady dealmaking environment, generating higher fee income despite a decrease in overall capital markets segment revenues.
• Wealth Management: Continued to improve operating margins and managed $25.8 billion in assets by quarter-end.
• Communications: Provided steady cash flow, contributing to the platform's stability.
• Consumer Products (Targus): While facing macro headwinds in the PC market, Targus remains a leader in its sector, poised for growth as the market stabilizes.

Leadership Insights:

• Bryant Riley, Chairman and Co-CEO, emphasized the company's operational stability and strategic focus amidst challenging conditions. The firm's resilience is attributed to the dedication of its employees and robust core business performance.
• Tom Kelleher, Co-CEO, highlighted the impressive performance of B. Riley Advisory Services and the steady contributions from B. Riley Securities and Wealth Management. He expressed optimism about Targus's potential recovery and the company's strategic investments.

Looking Ahead:

B. Riley's strategic initiatives, such as debt reduction and selective investments, position the company for continued success. The ongoing strategic review of its Great American Group retail liquidation and appraisal businesses indicates a proactive approach to optimizing its portfolio. The firm remains committed to delivering value to its shareholders through dividends and operational excellence.
In summary, B. Riley Financial's first-quarter 2024 results underscore its strong operational foundation and strategic foresight, positioning it well for future growth and shareholder value creation.
20. State of the Stock
15 days ago
UF_Secret_Account
Not financial advice, do your own research. Don't take advice from the internet, consult a professional financial advisor.
On April 19th, the stock closed at $19.99. Today, it is over 50% higher after a positive 10-K clearing the company of fraud allegations.
The stock touched $40 on April 26 and 29, a 100% gain from a week prior.
The short interest has remained relatively consistent during the move, with 10-11 million shares still short. However, given the time lapsed, I think it's safe to assume that most of those shares were covered and re-shorted in the last two weeks. For future research, we should assume they have an average $35 entry on their short positions.
1st quarter earnings are coming soon. Like many of you, I am a little curious that it hasn't been announced yet, but I have no concerns with everything the company has on its plate. 10-Q's are unaudited and it's very unlikely there is anything to be concerned about, in my opinion.
The company could be coming to the end of their strategic review for GAG. That will eventually result in some additional financial statement adjustments for presentation.
I would expect 1st quarter earnings to be good based on their deal flow and reported transactions.
In November 2023, the board approved $50m for stock buybacks. The company repurchased 728,330 shares at an average price of $21.85, but mainly bought shares in November. That's $16 million spent, and means the company had $34 million approved to buy back stock at year end. The program continues through October 2024. At our current price, that would be 1.1 million shares (3.3% of the outstanding stock).
That is significant for a stock with this many outstanding shares, but more significant for the number of freely traded shares which is far less. How many times have we seen huge price moves on small blocks of shares? If the company adds $10-15 million to that program, that's another 300,000-500,000 shares. Again, it doesn't sound like a huge number but it would add pressure to what will become a dire situation for the shorts.
The shorts may decide not to cover, or to continue the strategy of taking their losses and re-shorting, but their ability to influence the stock back to a level where they truly profit is nonexistent in my opinion, particularly when volume dies between market-moving events.
I am eyeing the $50-$55 range as my price target in the next move up.
21. NOTE on FRG Independent Auditor’s Report
One of the positive things I see IMO was for the billion dollar loan that matures in 2026. “On July 2, 2021, the Company repaid $182.1 million of principal of the First Lien Term Loan using cash proceeds from the sale of the Liberty Tax business. The prepayment also satisfied the requirements for the quarterly principal payments so no additional principal payments with respect to the First Lien Term Loans (excluding the Incremental First Lien Term Loan) are due until the First Lien Term Loan maturity date.” To me this gives them some flexibility for their cash as there isn’t much long term debt due in 2024 or 2025.
https://preview.redd.it/ib92t7e66f1d1.png?width=975&format=png&auto=webp&s=df286021b0653db92122e33df0ed37f1068a0c6c
22. on May 3rd Cohodes or someone else got media to report 4th quarter from last year as q1 earnings this year. Which was a lie and FUD
https://preview.redd.it/nlau48276f1d1.png?width=623&format=png&auto=webp&s=832695b6c331c3df6dbcb861dc90551ee42a036a
23. B. Riley Financial Announces Full Redemption of 6.75% SR Notes Due 2024
17 days ago Wolfiger
LOS ANGELES, May 1, 2024 /PRNewswire/ -- B. Riley Financial, Inc. (NASDAQ: RILY) ("B. Riley" or the "Company") today announced that it has called for the full redemption equal to $25,000,000 aggregate principal amount of its 6.75% Senior Notes due 2024 (the "Notes") on May 31, 2024 (the "Redemption Date").
The redemption price is equal to 100% of the aggregate principal amount, plus any accrued and unpaid interest up to, but excluding, the Redemption Date, as set forth in each notice of redemption delivered to noteholders on May 1, 2024.
https://ir.brileyfin.com/2024-05-01-B-Riley-Financial-Announces-Full-Redemption-of-6-75-Senior-Notes-due-2024
24. 8k filed May 1st for Nasdaq Compliance
25. Found management bonus if above 136 by October. Did anybody else know that a part of managements comp was in the form of Performance-based Restricted Stocks Units with a vesting date of 10/27/24 AND A HURDLE PRICE OF $135?!?
https://preview.redd.it/wo2uh54k5f1d1.png?width=547&format=png&auto=webp&s=8b6dedf28ec845b2170647674f5b39b6eaac96a1

Hi all I've been receiving such notifications in my message everyday at around 1pm wherein they say some transactions are made from UPI lite. But when I check I don't see any transactions from my PHONEPE.
If the message genuine, if so then am I getting scammed

Edit: Basic clarification and wording, also caught that I missed the needed placement of a screenshot.
TL;DR: After 3+ years of working in near silence, Gamestop has dropped a reverse uno time-bomb nuke on shorts, and I don't believe we have fully comprehended just how big and effective of a nuke it will be. They finally released their plans to end the abusive short-selling once and for all... I believe the details in the filings have the answers. Need more eyes. We just need to HODL and let RC & Team work their magic. This was precisely timed and will be executed precisley. I believe they are about to throw the whole kitchen sink at em. Shorts r truly fuk. To be continued.
HEY FAM,
This is my first attempt at DD or a Possible DD. I don't really know what it is cuz I'm almost smoother than hedgefund CEO that's short GME. I'm long GME since before the sneeze of 2021, so I am at least marginally smarter. At the end of the day, I'm speculating while offering evidence in support of my speculation. And I remain open to constructive criticism and further insight from others. I really hope this gets more apes digging and in the think tank with me. There's plenty of foil to go around!
Nothing of which I discuss is financial advice and not indicative of what you should do with your money or investments. Make your own decisions. I have no idea what I am talking about.
Anyways! I am jacked af. And if it was not already obvious to you, I'll try and explain why.
Credit to U / Cataclysmic98 and U / Thump4 for their posts that inspired me to go down this little rabbit hole...these posts have probably not received the praise they deserve as of yet...
Links: https://www.reddit.com/Superstonk/s/rf8DbYQbWK
https://www.reddit.com/Superstonk/comments/1cvc2af/g_m_e_the_green_cashandcriminalsiphoning/
These fantastic, informational posts (and in light of all other prominent DD) got me thinking...there is SO much tit-jacking juiciness packed into the these filings, its not even fair (to Kenny & Co)...What could it all mean? And don't get me wrong, whatever causes shorts to get fukd is fine by me...But I felt all analysis so far is missing the true HUZZAHHH, the spicy MEAT-A-BALL, the true WOMBO COMBO of this saga...and I am willing to bet, what is about to go down is gonna absolutely obliterate all of our minds.
So, tonight, I knew I was gonna be up a while...I decided to dive in and actually read these filings...like in DEPTH. I read EVERYTHING...many sections multiple times over. These filings, all the possibilities... are a company's product of the last umpteen years of manipulation, fraud, and deceit... And I think I've got some fucking cool stuff to point you towards...and of course, it wouldn't be Superstonk without gluing some tinfoil to my head and trying to derive meaning from it all.
Links to filings: https://gamestop.gcs-web.com/sec-filings/sec-filing/424b5/0001193125-24-141200
https://gamestop.gcs-web.com/sec-filings/sec-filing/s-3as0001193125-24-141159
So, since the Friday morning filings...as I read those posts, and others who have gained popularity...most speculated and mused on what could they possibly do? Wow. They could issue 7 different types of shit and friggn combinations of those types of shit from here on during the next 3 years, at any time, in any amounts they deem necessary... blah blah...So all of us are rightfully like...well which ones will they choose to execute on? If they pull the trigger on any of this, when and how? What will they spend the money on? When will they sell the 45M? Yada yada.
We cannot even remotely accurately speculate as to when/how soon because they have 3 years to do optionally do any of this, obviously we hope soon af...but we can speculate as to how they do it and how fast they start pulling the trigger(s) if and once they do. What if they do it ALL?

Book-Entry Securities Section of S-3 Form

First, to clear something up, many apes have (understandably so) confused this use of "book-entry securities" with "book entry as it relates to Computershare". But when I asked Chat GPT 4 to analyze this whole section and break it down, it spat out the following:
"Sure, let’s break this down into simpler terms:

1. Book-entry form*: This is like a big ledger (or book) where they write down who owns what. Instead of giving you a paper that says you own something, they write it down in this book. It’s like when you have a library card, and they write down which books you borrowed instead of giving you a receipt*"

So, this just means Gamestop intends to issue new stock via the NYSE on the DTC's book/ledger, just like they always have. This is just them saying, you won't get physical shares mailed to you cuz that shit is obsolete. We know this.
Fine, but also notice toward the bottom (*see note below), they can be issued in "registered or bearer form" and they may be "permanent or temporary". The word "temporary" really caught my eye there. Maybe they intend to eventually suck them back up for some reason? Hmm.
*Sorry, forgot to post screenshot of it here, I am referring to the bottom part of the first paragraph under "Book Entry Securities" in the filings)...Here is the text if you care to read the whole thing I am referring to:
"We may issue the securities offered by means of this prospectus in whole or in part in book-entry form, meaning that beneficial owners of the securities will not receive certificates representing their ownership interests in the securities, except in the event the book-entry system for the securities is discontinued. If securities are issued in book entry form, they will be evidenced by one or more global securities that will be deposited with, or on behalf of, a depositary identified in the applicable prospectus supplement relating to the securities. The Depository Trust Company is expected to serve as depository. Unless and until it is exchanged in whole or in part for the individual securities represented thereby, a global security may not be transferred except as a whole by the depository for the global security to a nominee of such depository or by a nominee of such depository to such depository or another nominee of such depository or by the depository or any nominee of such depository to a successor depository or a nominee of such successor. Global securities may be issued in either registered or bearer form and in either temporary or permanent form. The specific terms of the depositary arrangement with respect to a class or series of securities that differ from the terms described here will be described in the applicable prospectus supplement."
So Chat GPT came to the rescue again, assuring that everyone who has a stock, gets the benefits of owning that stock, whether its in your own name or not.

• Registered Stocks*: These are like a school register that has your name and details.* When a company issues stocks in “registered” form, it means the company keeps a record of who owns the stocks¹²³. This is like writing your name on a book you own. So, if the company needs to pay dividends (which is like a reward for owning the stocks), they know exactly who to send it to¹²³.
• Bearer Stocks*: These are like a ticket to a fair. Whoever holds the ticket gets to enjoy the fair.* Similarly, whoever holds the “bearer” stocks is considered the owner¹⁴. The company doesn’t keep track of who owns these stocks¹⁴. So, if there are dividends to be paid, they are given to whoever presents the stock certificate (like showing your ticket at the fair entrance)¹⁴.

In summary, the main difference is about record-keeping. Registered stocks have a clear record of ownership with the company, while bearer stocks do not. They are owned by whoever holds them. However, bearer stocks are not commonly used today due to concerns about money laundering and tax evasion¹⁴.
So, that clears that up more or less.

It Takes Money to Buy Whiskey: The Warning

When you dig deep into these filings, you see patterns, subtleties, specific phrasing, potential omissions, etc...and I am not going to breakdown each filing in its entirety...but I want to highlight and get more eyes on some (what I believe might be) key pieces of info in them and what they might mean.
Background/Perspective: In the last THREE YEARS...In addition to turning the company profitable, cutting fat, raising and sitting on $1B, near silence from the company itself as to what its grand plans will be/are... I think Gamestop spent a significant portion of the last 3 years developing a grand plan for shareholders too...
They needed a plan that: (in no particular order)

1. Is good for EVERYONE actively involved (the company, worldwide shareholders, the employees, the executives, etc.) and bad for EVERYONE in their way of accomplishing their goals.
2. Raises BIG money so they can make BIG money moves (acquisitions, mergers, investments)...$1B is a lot, but not really at the scale we are dealing with...it takes money to buy whiskey...it takes MONEY to buy something that ages and gets better as it ages (a company that not only survives in today's age but THRIVES)...it takes MONEY to make that happen. And more is certainly better than less!
3. Drives insane shareholder value, makes investors want to stay, and isn't dilutive in the long term.
4. Ends the short-selling schemes once and for all without (illegally) breaking the entire financial world in half in the process.

And once they had a plan, they knew they had to put it into grade A, air-tight, sealed tighter than Kenny's butthole wrapped around his favorite bedpost, impeccable, immaculate legalese. (I don't normally read legalese so my interpretations below could be way off, idk a lawyer ape might jump in to clarify).
Anyways, once it was in pristine legalese, they could then share it with, well, everyone...which they just did. I am not sure every ape understands the potential magnitude of these filings...Gamestop could have literally just laid out their ENTIRE plan to LEGALLY end the abusive short selling and to finally expose their stocks true value (which they technically have the duty to do to protect the interests of their shareholders) and they laid it out for everyone to FINALLY see.
(End of Background/Perspective)

The Filings (The Sirens)

From what I have seen, most of the speculation offered up by most Apes these last two days usually only included mentioning a combination of 2-3 of the types of securities mentioned in the filings. Or speculation on the impact a single one of them could have...Most seem to view the 45M common stock sale (Filing 424B5) as separate from the S-3ASR filing simply because they are separate filings. But 424B5 is indeed a "supplement" to S-3ASR (in case that isn't known).
424B5 is a supplemental filing to S-3ASR
I speculate that it all ties together. And by "all", I mean everything...everything all at once. Musical chairs played to a beautiful symphony of Kenny & Co's worst nightmares (legend has it that the music briefly stops every time the stock halts). Who will have the last chair and win the game? (Hint: It's Gamestop)
WHAT IF... Gamestop is telling everyone..."It's been long enough...this is what we are doing...but not just some of these things...ALL OF IT...ALL AT ONCE"...?
Let's dig in...

The Un(known) Wingman

So let's talk about the Depositary Shares section and the "Preferred Stock Depositary" (PSD) that they plan to use to distribute up to 5M shares of "preferred" stock (more on that after)
Why no name?
Notice how they don't name their "bank or trust company". They say refer to them as their "PSD". There's probably a legal reason fo this but I'll come back to this later too.
To me, this is Gamestop saying "by the way, these fractional shares won't be able to be fucked with or shorted because ________(I'm thinking Computershare, of course) is going to handle them, manage them, and store them for us)...
Trust services? Check!
BUT no one gets to officially know who they are until Gamestop has already pulled the trigger with the related SEC filing :D muhahaha.
Also, see that there will be a "deposit agreement" that shareholders will have to agree to in order to exercise their ownership rights and privileges of the preferred stock through the PSD. Cut out the middle man...you get to take direct ownership of this shit just like DRS Book and receive all the rights and privileges of ownership, even if you only own a fraction of one preferred share.
Side Note on The Book-Entry Securities Section:
https://preview.redd.it/wesqanx3id1d1.jpg?width=1542&format=pjpg&auto=webp&s=e05c9d166556da4d04817a5b836a3658b50713f4
Now, I don't know if this is unique/important or not...but NOTICE HOW Gamestop doesn't name their PSD, but straight-up names who the depository is, the muthafuckin DTC. Unfortunately, they have to issue to these bastards first. The DTC is then expected to distribute those stocks to DTC "participants" (market makers, hedge funds, brokers, etc.) who are then expected to distribute those securities to the holder of record (you and I)...once you have those securities distributed to you, you can choose what you do with them (DRS anyone?)
They also state, in writing now, how they EXPECT the DTC to act (in a lawful manner through and through). Perhaps this wasn't made crystal clear to them before the splividend, so RC made sure they knew what is expected of them from here on out with the issuance of new shares. Anyways, I thought this was a call out in light of the omission of their PSD counterpart.

The Kill Shot Machine Gun: Evidence from the Filings

Okay let's keep this party going...
Preferred Stock: In the filings, Gamestop reserves the right to issue up to 5M preferred stocks that can be issued as fractions of a whole. (They're essentially gonna take 5,000,000 whole stocks and break them up into teeny tiny pieces so there is enough to go around.) Here is chat-gpt's ELI5 breakdown of the passage in the filing:
"Sure, let’s break this down into simpler terms. Imagine you have a big chocolate bar (this is like the preferred stock). Now, instead of giving away the whole bar, you decide to break it into smaller pieces and give those pieces away. These smaller pieces are like the depositary shares, and each piece represents a part of the whole chocolate bar.
The wrapper around each piece of chocolate is like the depositary receipt. It shows that you own that piece of the chocolate bar. The company that helps you break the chocolate bar and wrap the pieces is the Preferred Stock Depositary.
Just like how you can enjoy the taste of the chocolate by owning a piece, the owner of a depositary share gets to enjoy the benefits of the preferred stock (like dividends, voting rights, etc.) in proportion to the size of their piece.
The rules about how the chocolate bar is broken, how the pieces are wrapped, and how you can enjoy them are all written in a special agreement (the deposit agreement). And all these details are explained in a document called the prospectus supplement when you buy the pieces of chocolate.
So, in short, instead of buying a whole share of preferred stock (the whole chocolate bar), you’re buying a part of it (a piece of chocolate), and you still get to enjoy all the benefits! 😊"
This is great. But what I think is important to pay attention to here is the number 5,000,000...sounds like a lot...but in the grand scheme of things its not at all...our float is ~71M, total DRS shares reported to be ~75.3M, total issued shares is just over 300M (Sixty times 5,000,000), and the company is authorized to issue up to 1,000,000,000 of class A common stock !!! Right?...so 5M is a tiny, tiny, number in comparison. Whether you realize it or not, 5,000,000 is only 0.005% (1/200th..!!!) of 1 Billion. Tiny. And its not even guaranteed they'll choose to issue all 5,000,000 or to what degree it will be fractionalized. Only 5,000,000 issued through a company-chosen PSD that can't rehypothecate them, short them, fuck with them...ladies and gentleman, a commodity with true scarcity paired with high demand has entered the chat. $$$.
The preferred stocks come with perks (I will speculate on perks later). So something tells me these preferred stocks are gonna go to apes/holders of record for first dibs, they will be in high-demand, carry exclusive rights and privileges, and you will be able to purchase a given amount of them relative to how many shares of the Class A Common stock you own at the time of the offering... Notice how I said purchase them (this is where "Ape Options" (subscriptions and warrants) might come into play allowing each of us (and maybe even GME employees) to pick up a shit load of common/preferred stock on the cheap yo! And then DRS it all!!)
https://preview.redd.it/hyjoaejigd1d1.jpg?width=1300&format=pjpg&auto=webp&s=0a33e9c940d17d8c58af9987ad3a8443c6dbeb44
GPT4 on Subscription Rights.

• When a company decides to sell more stocks (also known as a secondary offering), it can give its current shareholders subscription rights¹².
• These rights allow current shareholders to buy the new stocks before they are offered to the public¹².
• The number of new stocks a shareholder can buy is usually proportional to the number of stocks they already own¹².
• This way, shareholders can maintain their percentage of ownership in the company¹².
• If shareholders do not use their subscription rights to buy new stocks, their percentage of ownership in the company will decrease¹².

So, subscription rights are like a “first dibs” or “early bird special” for current shareholders when a company is selling more stocks¹². It’s a way to reward loyal shareholders and help them maintain their ownership stake in the company¹². However, if shareholders do not exercise their subscription rights, their ownership will be diluted¹².
Here’s how it might work,
Gamestop senses volatility, we've seen $80 and I don't think that's all we will see. So Gamestop first issues (sells) more common shares on the way up any given run, simultaneously they give currently shareholders subscription rights to load up on common stock all they want on the cheap during a specified time window.....then, once that window closes, they give us MORE subscription rights (first dibs!) that allow us to purchase preferred stock in an amount based upon how many shares of common stock we currently own at the time of that offering. Talk about insane value!
Gamestop knows their loyal retail investor base has poured so much of our hard-earned money the last 3+ years...we've invested so much time and money into this. I believe RC is looking out for us and will offer these subscriptions rights at an INSANE value to us, it won't make logical sense not to exercise them (look how cheap bookstore just offered up their subscription rights shares ($0.05/share) (https://www.reddit.com/Superstonk/comments/1cv6x37/walking\_backwards\_then\_forwards/) Credit to user N4hu1)
Opinion: RC won't (and frankly, we won't) allow for much dilution, if any at all. The subscription rights might just be too good to be true and certainly too good to pass up.
And everyone who purchases preferred stock receives a "receipt" or receipts for their transaction(s) (i.e. a ledger) There's a record for it all.
So, Its past 6am, I've been digging and writing for 7+ hours... and so I am going to call this the end of Part 1...but more tinfoil to come! I look forward to the potential discussion.
What comes next is the discussion of Subscription Rights, Warrants, and Units :D...and I believe it all beautifully comes together with the plan for the preferred stock and the PSD...and that Gamestop plans to obliterate the shorts from left, right, above, and below with some type of unfuckwithable mass scale share/security offering that is going absolutely blow the world away.
Here's a sneak peak of other juicy bits I want to discuss next:
Until we have another plan...we plan to invest...hmm invest where? In what?
In the even of a distribution other than in cash...a public or private sale of such...\"property\".
Would love to hear your thoughts thus far. More to come and thanks for reading if you made it all the way here!
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