Investor Insanity Creates Huge Mispricing: 12.5% YTM On B. Riley Baby Bonds

Preferred Stock Trader
Investing Group

Summary

  • The YTM (yield to maturity) on B. Riley baby bonds has increased as much as 44% in just the last 3 weeks with YTMs up to 12.96%.
  • A short attack (IMO without merit) caused RILY stock to drop but strangely the much safer baby bonds dropped much more. Thus, this excellent buying opportunity now exists.
  • The 12.5+% YTM on RILY baby bonds versus the 8% current yield on RILY preferred stocks is one of the most egregious relative mispricing that I have ever seen.
  • RILY could have a strong first quarter giving investors in their baby bonds a catalyst for a strong rally.
  • We're currently running a sale at my private investing ideas service, Conservative Income Portfolio, where members get access to portfolios, market alerts, real-time chat, and more. Learn More »

Machu Picchu Dramatic Clouds, Peru

SL_Photography

B. Riley Financial

B. Riley Financial (NASDAQ:RILY) is an investment bank that also has other operating businesses. It has been very successful in becoming a premier investment bank for small cap companies and is now one of the

Are you looking to start building a Fixed Income Portfolio?

Conservative Income Portfolio targets the best Preferred Stocks and bonds with the highest margins of safety. We strongly believe that the next decade will belong to fixed income irrespective of whether you are conservative or aggressive in your approach! Get in on the ground floor of our recently started Bond and Preferred Stock Portfolios.

If undervalued fixed income securities, bond ladder, “pinned to par” investments and high yielding cash parking opportunities sound like music to your ears, check us out!

Psst! You get access to our options portfolio as a bonus!

This article was written by

Preferred Stock Trader
8.65K Followers

Preferred Stock Trader has 30 years experience investing in preferred stocks and bonds. He utilizes a proprietary screening software researching high yield preferred stocks and bonds that are undervalued relative to securities with similar profiles for high total returns.

Preferred Stock Trader contributes to the investing group Conservative Income Portfolio which features investing ideas for undervalued preferred stocks, baby bonds, traditional bonds with the potential for high yield and capital gains. Features of Conservative Income Portfolio include: covered call opportunity portfolio, long term portfolio of stocks and bonds, exclusive articles for members, previews of public articles in advance, macro analysis, and community chat. Learn More.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of RILYT, RILYK, RILYM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About RILY Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on RILY

Related Stocks

SymbolLast Price% Chg
RILY
--
RILYK
--
Compare

Trending Analysis

Trending News