Sell Alert: B. Riley Financial (RILY)

By Jim Pearce • August 9, 2017

TRADE INSTRUCTIONS
Date: August 9, 2017
Name: B. Riley Financial
Symbol: RILY
Type: Close
Limit: Sell at market          

TRADE RATIONALE
Expectations must have been sky-high for RILY because the second quarter results it released on Monday evening appeared pretty good to me. Revenue was more than triple the same quarter last year, and adjusted EBITDA was nearly ten times what it was a year ago. The company even declared a special dividend in addition to its regular dividend to share the wealth with its investors. Apparently, none of that was sufficient to prevent the stock from closing below my stop-loss level of $17.50 on Tuesday, so by rule I must close out this position immediately. My guess is one of its institutional holders decided to get out of the name, which for a thinly traded small-cap stock like RILY can temporarily disrupt the bid/ask equilibrium to a large degree. If my hunch is correct, then the stock should recover a bit after this week’s selling spree is over so you may want to wait a few days before deciding what to do with it.

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Bob

Bob

Your emails and text messages are delivering extremely late. Today’s alert email showed up over 2 hours after posting on your website. As of this time, I still haven’t received the text message. Is this something on my end? If nothing else, we need to figure out how to deliver alerts in a timely manner. Thank you.

Bill H

Bill H

Bob,

FYI, I got the email at 10:22AM and the text at 10:25AM. The market opened at 9:30AM so that’s under an hour. (I’m in NYC).

Earlier I DID start to get the emails late, and called to set up the texts. I mentioned the issue with the emails. It seems better now. Maybe that’s your solution too…

Bob

Bob

To me, alerts and critical information emails and text should be generated immediately upon posting on the website. No matter if it is before the opening of the market or after. You always need time to prepare next steps.
My 2 cents.
Thank you.

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