B. Riley & Co., LLC Firm Update - September, 2009
Dear Friends & Colleagues:
In our last communiqué, we cited a substantial increase in activity within our firm and expressed early optimism for what we believed to be initial signs of a recovering market.
As you know, we are Value players with a contrarian streak. We built our company and reputation on our ability to see around corners and find undiscovered or overlooked opportunities. It is in periods of market turmoil where we can excel most and outperform others.
It is in that light that we would like to recap what has been a brisk acceleration of activity at our firm, including the successful completion of deals ranging from SPACs, Registered Directs, Equity Raises, and M&A. We'll also bring you news from our Research Department; introduce you to new professionals that have joined our firm, and if you don't mind, we'll do a little bragging too-as we have just received another top industry recognition.
Thanks for allowing us the opportunity to share this news with you, and for your continued interest.
INVESTMENT BANKING NEWS:
In our June note, we reported that B. Riley served as financial advisor to privately held Great American Group, LLC in its sale to SPAC Alternative Asset Management Acquisition Corp. On August 10, 2009 we announced that shareholders approved the $158.9 million deal. The new entity, Great American Group, Inc. is trading under the ticker GAMR.OB.
On August 13, 2009 it was reported that B. Riley acted as financial adviser to Western Sizzlin Corp. (Nasdaq: WEST) in its $23 million sale to Steak 'n' Shake Company (NYSE: SNS).
The following week we announced a $7.4 Million Equity Raise for Silicon Valley-based Proxim Wireless (OTCBB: PRXM), a leading provider of end-to-end broadband wireless systems. Significant to the transaction: $5 million of the capital was secured from a Japanese-based strategic partner, SRA OSS, Inc. (www.sraoss.com), a wholly owned subsidiary of SRA Holdings, Inc. of Japan (www.sra.co.jp), a publicly held company listed on the Tokyo stock exchange (JP3817). The remaining $2.5 million was secured from existing investors through a combination of new investment and cancellation of debt.
On September 8, 2009, we announced that B. Riley acted as the exclusive placement agent for a $19 Million Registered Direct Offering for San Diego-based Kratos Defense & Security (Nasdaq: KTOS). The offering involved placement of 26 million shares of common stock with institutional investors.
RESEARCH NEWS:
California Bank Stock Conference: (Held August 4, 2009):
While many investment banks have abandoned all conferences during this difficult market, we just completed our second conference of the year: the California Bank Stock Conference. Held in Los Angeles, the one day conference featured nearly a dozen regional banks. In order to give investors an big picture overview of the banking and real estate industry, we featured one of the nation's leading legal experts on the banking industry as well as a leading economist who forecasted residential foreclosure trends and the anticipated impact on the banking industry.
Apparel Industry Tour: (Coming September 22, 2009)
A Retail Tour of California publicly traded apparel companies is scheduled on September 22nd, which will include both management presentations and visits to corporate headquarters. If your portfolio consists of companies in this sector or are interested in learning more, you can sign up for the tour by calling our sales desk at 310-966-1440.
11th Annual Stock Conference: (Coming May 24-26, 2010)
Save the date--May 24-26, 2010-- for the B. Riley 11th Annual Stock Conference. This year the conference moves to the coast and will be held at Loews Santa Monica Beach Hotel. With sun, sand and surf as a backdrop, our award winning research team will present what it believes are some of the most interesting opportunities in small caps. Plans are underway to book top expert panelists who will provide the "value added" perspectives that distinguish our conferences.
If you're not a California beach "local", the month of May is a beautiful time to be here. With lots of nearby attractions, you might want to bring the family! We'll keep you updated as the date approaches.
RECOGNITIONS, RANKINGS & AWARDS:
Dow Jones Study Ranks B. Riley #1 in Research Calls
In an August 27, 2009, Dow Jones article headlined "Tales of the Tape-Analysts Zigged When They Should Have Zagged", Dow published results of a survey which showed that B. Riley ranked #1 among "Specialized and Regional Banks" in terms of Buy/Sell Performance of our Call Recommendations. We took the #1 spot for 1-year performance (83.1%), #1 spot for 6-month performance (109.9%) and #1 spot for 3-month performance (36.0%). Those figures outperformed the bulge bracket firms. The performances of the bulge bracket firms that held the #1 spots were 14.5%, 4.7% and 5.1% respectively for the 1-year, 6-month and 3-month periods.
This is the third time this year that our Research Department was ranked #1 by independent sources. In July we proudly announced that Integrity Research Associates had ranked B. Riley Research #1 based on returns. Integrity's rankings placed B. Riley in the number one spot for "Returns in Basis Points per Day" and "Returns per Correct Call." And, in January, Integrity ranked us #1 for the accuracy of our calls for all of 2008. Integrity's analysts cover over 1,600 research firms in the U.S., Europe and Asia.
NEW INNOVATIONS:
Virtual Management Presentations:
In keeping with our philosophy that difficult markets require greater communication between management and investors, we've been holding Virtual Management Presentations on a weekly basis with companies in B. Riley's Research Universe. More than a dozen have been hosted since late June and another two dozen are scheduled through mid-January. Feedback from both investors and management has been very positive. Management interested in being considered for a virtual investor presentation should contact our Research Department at 310-966-1443. Investors interested in participating in upcoming presentations are welcome to contact our Sales Desk at 310-966-1440.
NEW HIRES:
B. Riley is in a fortunate position to in a hiring mode, with August marking the addition of seasoned professional Brian Murphy to our San Francisco Institutional Equity Sales Desk. Mr. Murphy will be focused on the firm's Northern California and Pacific Northwest client base. He comes to B. Riley from Keefe, Bruyette & Woods where his extensive sales and trading background will further support our B. Riley's Financial Industry Group.
We are continuing our search for high quality professionals in banking, research and sales and trading, and expect to be making additional announcements in the coming weeks.
IN CONCLUSION:
We enjoy being able to report good news, and this update is filled with many positives. It is especially rewarding to be recognized and top ranked within our industry; especially by such prestigious groups as Dow Jones and Integrity.
Engagements for a variety of advisory services are up significantly over 2008. However, "engagements" have never been the gauge from which we measure our success. It's completed deals that count… and by that measure, it's been a pretty good month!
We appreciate your interest and value your continued business.
Sincerely,
Bryant R. Riley
Chairman |
