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  "docSlug": "377026890e4d",
  "documentTitle": "B. Riley Financial, Inc. (RILY)",
  "authorId": "60_Wolfpack_Research",
  "authorName": "Wolfpack Research",
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  "presentationDate": "2023-02-08 00:00:00",
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  "notes": "The slide uses a peer valuation table to argue that RILY is overvalued and should trade significantly lower.",
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      "text": "RILY shares currently trade at a 110.4% premium to the average P/BV of its six closest comps.",
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      "text": "P/BV: 110.4%",
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      "text": "Using the common relative valuation metric for financial firms, price to book value, even if we ignore all our research indicating that RILY's actual book value is far less than what it presented in its last filing and take the company at its word, RILY shares currently trade at a 110.4% premium to the average P/BV of its six closest comps. The comps used are Jeffries, Goldman Sachs, Morgan Stanley, Cowen, Piper Sandler and Credit Suisse. See the table below:",
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      "text": "We strongly believe that all of the comps used have higher quality assets making up their book value than RILY. Yet RILY still trades at an egregious 110.4% premium on a last filing price to book value basis against the average of its peers – why anyone would choose to buy this stock is beyond us. In order to trade at no premium to the average of its peers, RILY stock would need to fall to ~$19.00 per share. However, we are hesitant to even put a price target on RILY, as we are not confident that it will even survive 2023. We are short B. Riley Financial.",
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      "kind": "source-note",
      "text": "Source: Bloomberg LP, as of January 20, 2023",
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      "text": "Peer valuation table comparing B. Riley Financial to Jefferies, Goldman Sachs, Morgan Stanley, Cowen, Piper Sandler, and Credit Suisse.",
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      "kind": "title",
      "text": "Conclusion: B. Riley Financial – Pay More, Get Less",
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      "evidence": "The document provides a solution, or rather, a reason for shorting the company, citing its systemic weakness in equity portfolio and telecom rollup based on obsolete assets.",
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