And debt consolidation

Debt Management and Debt Help

2008.06.12 16:27 Debt Management and Debt Help

This subreddit is a place to discuss debt-related issues, debt management, collections, and more.
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2010.03.10 18:29 moronometer Debt Free

We help individuals become debt free.
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2009.02.09 03:42 Personal Finance

Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!
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2024.05.21 21:30 Best-Brick-1692 Filed today!

After a bit of back and forth with myself and a medical situation that finally threw me in the deep end, I officially filed today. My attorney said I should know upcoming dates by Friday and the ball should start rolling quickly after that.
I had previously enrolled in a debt consolidation program and that ended up tanking my credit and getting me sent to a few different collections agencies. I’ve come to realize I should have just filed initially but hindsight is 20/20. As weird as it may sound, I’m excited to get started and get saving what I can and fixing what I managed to mess up.
submitted by Best-Brick-1692 to Bankruptcy [link] [comments]

2024.05.21 21:10 BleepBlimpBop $RILY DD: Long List of Short Seller Claims --- DEBUNKED with proof!

Ever-shifting Short Seller Claims

The short sellers attacking RILY in 2023-2024 have been relentless (currently 57% of float sold short per FinViz), with an ever-shifting list of wild accusations.
It's sickening to watch them compile a never-ending list of baseless wild theories and claims to support their short positions, which are demonstrably false. But as each is proved false, they pivot to new claims, and/or change the goalposts.
The sheer volume of shifting claims makes it hard to track how despotic they are with their "platform," and how many falsehoods they've spun. Even for someone who watched it in real-time, for almost a year

Compiled & Debunked

Sunlight kills vampires. To that end, I've compiled a list of (i) claimants (ii) claims (iii) reality (iv) definitive source proving reality.

Why Did They Target RILY?

One of the most vocal short sellers, Nate Koppikar (who also introduced Marc Cohodes to the "opportunity") has a fund Orso Partners. Based on their SEC registration document, this is their investment thesis:
"The Account’s investment objectives are to achieve capital appreciation primarily by identifying and selling short marketable equity securities of underfollowed and complex companies with misleading or corrective disclosures through a research-intensive process. The Account employs a short-biased investment strategy with an emphasis on primarily small to mid-cap companies that are underfollowed and complex (i.e., companies with market capitalizations of less than $5 billion which the market does not yet have a wellformed bull and/or bear perspective)."
RILY fits their description. The icing on the cake was the relatively large market cap, and the relatively small float. Given extremely high insider ownership (32.9% of shares per the proxy), and limitations on when and how insiders can trade, the "free float" of the stock (i.e., the shares that regularly trade) is very small for the size of the company. Moreover, the setup would only get better - given insiders have consistently used their free cash to buy additional shares hand-over-fist (further reducing the float).
That meant, with relatively small amounts of capital, the short sellers could shove around the stock price. That ability to move price opens another profit avenue - taking large derivative positions (buying puts, and selling calls), and shoving the price (or allowing it to drift up) to profit all along the way. It looked so good, the stock has been the highest-shorted on the US indices for several months. Even after the release of the 10-K, shares remain "hard to borrow" with elevated borrow fees.

Debunked Claims

The claims made by vocal short sellers could fill a book. Most were outrageous and fanciful when they were proposed. Virtually all have objectively debunked. This isn't a comprehensive list, as their claims are too numerous and varied. But it paints an illuminating picture.
With a track record this poor, one would expect the short sellers to exit - rather than continuing to spin new narratives. Perhaps the continued attacks are their exit strategy to avoid bankruptcy... Well, #Bullish.
With the highest short interest of all US stocks (albeit likely decreased from the highs of ~76% of the float), I think this is more than ripe for a return to fair value - or well above, if a short squeeze occurs.
Note: this sub disallows image posts. There is a similar post in the RILYStock sub which contains virtually all source images for the claim in the comments (too many images to embed in the post). The source images are illuminating.
Note that the list below deliberately excludes three types of posts/claims from the short sellers:
A) Juvenile personal attacks and attempts to character assassinate and dox a long list of people (RILY CEO, RILY new hires, RILY clients, Marcum the auditor, Marcum's lead audit professional, any firm or individual publicly posting a bull thesis on RILY, etc.).
B) Those that make no objective claims, but simply exist as a product of malicious degeneracy (like pictures of roasted pigs in ovens labeled Bryant Riley the CEO, photoshopped pictures of the CEO in prison chains next to convicted felons, video of an obese woman barely able to walk being gored by a bull labeled Mrs. Riley the CEO's wife, etc.).
C) Those that are impossible for short sellers to know, and impossible to objectively verify (e.g., Marc Cohodes claiming a single RILY trader front runs the CEOs personal short trades in front of clients taking following the firm's bullish advice on those stocks, to guarantee profits).
Claimant Claim Reality
1) Wolfpack Wolfpack “RILY will record investment losses of up to ~$700 million in 2023” FALSE 10-K FALSE
2) Wolfpack “new loan to CORZQ will work out just as badly as the last and end in default (again) before June 2023” Repaid in fullFALSE , early, on 1/6/2024.
3) Wolfpack “The coupon rate on RILY’s seven issues of baby bonds ranges from 5% to 6.75%, which we believe to be far too low to compensate investors for the existential risk that accompanies these securities.” Full redemption FALSE of May 2024 came early. Far more than sufficient cash to cover debt payments.
4) Wolfpack “According to our analysis, 4 of RILY’s largest 7 corporate borrowers with outstanding loan balances of $295.3 million are at a high risk of default, or in the case of CORZQ, is already in default.” Core Scientific IncExela Technologies Arena Group Holdings FALSE a. . repaid early and in full ($111MM of the “risk”) b. repaid term loan in full ($55.8MM of the “risk”) c. debt retired in full ($99MM of the “risk”). Publicly disclosed in the most recent 10-K for each company (search for "Riley" in the filing)
5) Wolfpack “RILY’s NAV is Far Below the $1.1 Billion Minimum NAV Requirement That Is Required for the Nomura Credit Agreement Putting RILY at Risk of Collapse in 2023” is in full compliance FALSE RILY with the Nomura credit agreement. Moreover, reflecting the strength of the relationship, Nomura even granted a no-fee extension when the 10-K filing was delayed. Also see 10-K for current status.
6) Wolfpack “Over $200 Million of the Goodwill and Intangible Assets on RILY’s Balance Sheet is Attributable to its Telecom Rollup, which is Centered on Dial-up and DSL Internet:” - criticizing them as dying businesses with no value extremely valuableFALSE Segment is . From just 2020 to 2023, the communications segment has returned over $212.2MM in adjusted EBITDA.
7) Nate Koppikar (TheFriendlyBear) + Bill Abbate Jr. (JrAbbate), Various RILY committed fraud with loans and closing the FRG acquisition. "The fact $RILY closed the FRG deal while hiding the Kahn loan - an all PIK defaulted loan backed by $FRG shares - is a Hall of Fame worthy act of fraud. I thought after Enron/Sarbox we couldn't have something like this happen in US markets." FALSE A law firm led an internal investigation, and an independent external investigation both found “The review confirmed what the Company previously disclosed: that the Company and its executives, including Bryant Riley, had no involvement with, or knowledge of, any of the alleged misconduct concerning Prophecy.” “The results of the independent investigation confirmed that the Company and its executives had no involvement with, or knowledge of, any of the alleged misconduct concerning Mr. Kahn or any of his affiliates. This independent investigation was conducted subsequent to the Company's February 22, 2024 disclosure of the internal review performed with the assistance of Sullivan & Cromwell LLP as outside counsel.” Also see 10-K
8) Marc Cohodes (AlderlaneEggs), ParrotCapital, Bill Abbate Jr. (JrAbbate), Various The 10-K will never be filed. They can't produce audited financials. Audited 10-K FALSE was filed. Delay was due to Audit committee fulfilling its responsibilities and proactively conducting investigations (internal and external).
9) Marc Cohodes (AlderLaneEggs) + Nate Koppikar (TheFriendlyBear) + Bill Abbate Jr. (JrAbbate) + ParrotCapital Sullivan and Cromwell knew about Massive Fraud, and did a "sham investigation" Sullivan and Cromwell FALSE is one of the most respected law firms, in the US and worldwide. "Sullivan & Cromwell continues to lead all law firm advisers in announced and completed global deals in 2023, according to Bloomberg and LSEG. The Firm advised on global announced deals totaling more than $345 billion, representing a 12.1 percent market share, per Bloomberg, and on completed global deals totaling more than $431 billion, representing a 16.9 percent market share, per LSEG." They're not compromising themselves for a relatively small client.
10) Marc Cohodes (AlderLaneEggs), Nate Koppikar (TheFriendlyBear), Bill Abbate Jr. (JrAbbate), Parrot Capital Marcum is enabling Massive Fraud MarcumFALSE is a respected audit firm, and 13th largest by revenue. "Marcum LLP advanced into the Top 15 in the 2023 Vault Accounting list of top-ranked accounting firms. Marcum climbed six levels to the No. 13 ranking overall and earned a ranking of 14 in prestige. The Firm also won Top 20 rankings across all Practice Area, Quality of Life, and Diversity categories, including several new classifications added this year."
11) Marc Cohodes (AlderLaneEggs) Nomura is enabling Massive Fraud NomuraFALSE is a global financial services company, and the oldest brokerage firm in Japan. They operate in a highly regulated industry. They're not putting themselves on the line for a relatively small client.
12) Parrot Capital "The list of $RILY enablers is massive: Marcum LLP, Sullivan and Cromwell, Seeking Alpha, Holbrook Holdings, $AX Axos Bank, Many, many more." FALSE There's no global conspiracy whereby these companies - all respected law firms, auditors, banks, and media outlets - are collectively colluding to enable RILY to commit fraud. Requires only two brain cells and one functioning synapse to know there's no grand collusion cabal between these disparate companies.
13) Marc Cohodes (AlderLaneEggs), Jonathan Weil at WSJ Franchise Group shares used to secure Kahn loan: "It is unclear whether Kahn pledged the same shares twice—to both Prophecy and B. Riley." stated by the company UCC search FALSE As , Simple disproves this. UCC # 202302295747
14) Marc Cohodes (AlderLaneEggs) “Bryant Riley is on the Road, telling people the ‘audit partner at Marcum left’ and that ‘I have made mistakes’ “ hit the 5yr SEC ruleFALSE Marcum audit partner was working on the audit the whole time; the original audit partner had , so he was never working on this year’s audit.
15) Marc Cohodes (AlderLaneEggs) "So it turns out James La Rocca was Fired by MarcumLLP If nothing was wrong with prior $RILY Audits, why is he gone? This will be great in discovery of what exactly went on. hit the 5yr SEC ruleFALSE Marcum audit partner was working on the audit the whole time; the original audit partner had , so he was never working on this year’s audit.
16) Koppikar (TheFriendlyBear) “So Bryant Riley did disseminate MNPI back in March” in response to Cohodes claim that he told people the Marcum partner left 5 consecutive yearsFALSE Cohodes claimed Bryant Riley was telling people the Marcum auditor left. Koppikar called that disseminating MNPI. Cohodes statement was false (and thus Koppikar's derivate claim is also false). A different auditor worked on RILY, as Marcum follows the SEC rules; the lead auditor can only serve the client for . As such, Koppikar’s derivative claim of disseminating MNPI is false.
17) Koppikar (TheFriendlyBear) “He appears to still not be familiar with the voting interest model of consolidation… why is a life science and tech partner signing an extremely complex investment company / broker dealer audit ???” i.e., auditor is unqualified Marcum is a highly respected auditorFALSE The auditor is fully qualified. ; they don't hire unqualified people, or assign them to clients they're unqualified to audit. RILY is continuing to use Marcum as the 2024 auditor.
18) Marc Cohodes (AlderLaneEggs) "Now that the $RILY dividend is going away, this omission is serious stuff" reduced 24Q1FALSE The dividend did not go away. It was from $1.00/share to $0.50/share, to allow them to opportunistically allocate capital. 23Q4 and
There are too many source images for the claims above to embed in a reddit post, and this sub doesn't allow images in comments. Images can be seen on a version of this posted to a sub that discusses RILY in the comments (~55 images). All claims can be sourced on the various social media venues and websites utilized by the short sellers. Other sources include: https://wolfpackresearch.com/research/rily/ and here https://friendlybearresearch.com/wp-content/uploads/2023/12/RILY-Analyst-Day-Questions-12_11_13-Final.pdf and https://www.institutionalinvestor.com/article/2cpgaejc45gocvoqb1ngg/corner-office/how-b-riley-garnered-the-biggest-short-interest-of-2023 and https://www.wsj.com/finance/how-an-unremarkable-deal-became-a-big-threat-to-a-small-investment-bank-f819a169 . https://adviserinfo.sec.gov/firm/summary/304196 form ADV. This is not financial advice. All claim summarizations reflect my interpretation of the short seller claims, and should be verified against original sources, along with all counters.
submitted by BleepBlimpBop to smallstreetbets [link] [comments]

2024.05.21 20:08 Own-Discussion-8779 How would you tackle this debt?

How would you tackle this debt?
Hey all,
I would love some advice on how to best tackle the below debt! I’ve racked a fair amount of credit card debt and applied for two debt condosliation loans that I’ve been paying since 2022. Currently have no savings at the moment and would like to create a game plan to tackle the credit card debt and pay off the debt consolidation loans before their due date (Discover scheduled paid off date is suppose to be by May 2025 and Upstart is in 2026). Any advice, budget resources, helpful insights would all be greatly appreciated!
Thank you!
submitted by Own-Discussion-8779 to debtfree [link] [comments]

2024.05.21 19:05 starsandsunshine19 Drowning in Credit Cards - Please Help!

I have two credit cards and would love some advice to help pay off the debt. I’m interested in consolidating the debt as well. The two cards are:
Discover CC Balance: $17,357.79 Interest Rate: 23.24% Min Payments: $398.00
Capital One CC Balance: $3,628.34 Interest Rate: 28.24% Min Payments: $278.00
I do not have any late payments on the cards except this month I am struggling to make the payment in time and called to push it back and both creditors worked with me on that.
I am having financial hardship due to low income. I made under $27,000.00 in 2023. I also am having painful medical problems (endometriosis) and it has been difficult living, let alone thriving.
Are there any programs that deal with forgiveness? I am willing to work to get the debt taken care of but because of the high interest, especially the discover card, my payments are eaten alive by the interest.
Please any advice I would so greatly appreciate it ❤️❤️❤️❤️❤️ thank you in advance for the love and support
submitted by starsandsunshine19 to CreditCards [link] [comments]

2024.05.21 18:35 WomboWomboing_ ELI5 Debt Consolidation options I’m confused

Hi! I have about 13K in credit card debt across four cards and medical debt. My credit score is around 500.
Unfortunately I’ve fallen on hard times, and I need to consolidate my credit. I’m very confused on the procsss and looking for a reliable and trust worthy company to do it? I’m not looking for a loan, but to put everything on one card so I can pay it off if that makes sense.
I’m very confused and I appreciate help!!
TLDR: confused looking for a reliable company to consolidate debt on one credit card. And how it works.
submitted by WomboWomboing_ to Debt [link] [comments]

2024.05.21 18:28 BleepBlimpBop $RILY DD: Long List of Short Seller Claims --- DEBUNKED with proof!

Ever-shifting Short Seller Claims

The short sellers attacking RILY in 2023-2024 have been relentless (currently 57% of float sold short per FinViz), with an ever-shifting list of wild accusations.
It's sickening to watch them compile a never-ending list of baseless wild theories and claims to support their short positions, which are demonstrably false. But as each is proved false, they pivot to new claims, and/or change the goalposts.
The sheer volume of shifting claims makes it hard to track how despotic they are with their "platform," and how many falsehoods they've spun. Even for someone who watched it in real-time, for almost a year

Compiled & Debunked

Sunlight kills vampires. To that end, I've compiled a list of (i) claimants (ii) claims (iii) reality (iv) definitive source proving reality.

Why Did They Target RILY?

One of the most vocal short sellers, Nate Koppikar (who also introduced Marc Cohodes to the "opportunity") has a fund Orso Partners. Based on their SEC registration document, this is their investment thesis:
"The Account’s investment objectives are to achieve capital appreciation primarily by identifying and selling short marketable equity securities of underfollowed and complex companies with misleading or corrective disclosures through a research-intensive process. The Account employs a short-biased investment strategy with an emphasis on primarily small to mid-cap companies that are underfollowed and complex (i.e., companies with market capitalizations of less than $5 billion which the market does not yet have a wellformed bull and/or bear perspective)."
RILY fits their description. The icing on the cake was the relatively large market cap, and the relatively small float. Given extremely high insider ownership (32.9% of shares per the proxy), and limitations on when and how insiders can trade, the "free float" of the stock (i.e., the shares that regularly trade) is very small for the size of the company. Moreover, the setup would only get better - given insiders have consistently used their free cash to buy additional shares hand-over-fist (further reducing the float).
That meant, with relatively small amounts of capital, the short sellers could shove around the stock price. That ability to move price opens another profit avenue - taking large derivative positions (buying puts, and selling calls), and shoving the price (or allowing it to drift up) to profit all along the way. It looked so good, the stock has been the highest-shorted on the US indices for several months. Even after the release of the 10-K, shares remain "hard to borrow" with elevated borrow fees.

Debunked Claims

The claims made by vocal short sellers could fill a book. Most were outrageous and fanciful when they were proposed. Virtually all have objectively debunked. This isn't a comprehensive list, as their claims are too numerous and varied. But it paints an illuminating picture.
With a track record this poor, one would expect the short sellers to exit - rather than continuing to spin new narratives. Perhaps the continued attacks are their exit strategy to avoid bankruptcy... Well, #Bullish.
With the highest short interest of all US stocks (albeit likely decreased from the highs of ~76% of the float), I think this is more than ripe for a return to fair value - or well above, if a short squeeze occurs.
Note: this sub disallows image posts. There is a similar post in the RILYStock sub which contains virtually all source images for the claim in the comments (too many images to embed in the post). The source images are illuminating.
Note that the list below deliberately excludes three types of posts/claims from the short sellers:
A) Juvenile personal attacks and attempts to character assassinate and dox a long list of people (RILY CEO, RILY new hires, RILY clients, Marcum the auditor, Marcum's lead audit professional, any firm or individual publicly posting a bull thesis on RILY, etc.).
B) Those that make no objective claims, but simply exist as a product of malicious degeneracy (like pictures of roasted pigs in ovens labeled Bryant Riley the CEO, photoshopped pictures of the CEO in prison chains next to convicted felons, video of an obese woman barely able to walk being gored by a bull labeled Mrs. Riley the CEO's wife, etc.).
C) Those that are impossible for short sellers to know, and impossible to objectively verify (e.g., Marc Cohodes claiming a single RILY trader front runs the CEOs personal short trades in front of clients taking following the firm's bullish advice on those stocks, to guarantee profits).
Claimant Claim Reality
1) Wolfpack Wolfpack “RILY will record investment losses of up to ~$700 million in 2023” FALSE 10-K FALSE
2) Wolfpack “new loan to CORZQ will work out just as badly as the last and end in default (again) before June 2023” FALSE Repaid in full, early, on 1/6/2024.
3) Wolfpack “The coupon rate on RILY’s seven issues of baby bonds ranges from 5% to 6.75%, which we believe to be far too low to compensate investors for the existential risk that accompanies these securities.” FALSE Full redemption of May 2024 came early. Far more than sufficient cash to cover debt payments.
4) Wolfpack “According to our analysis, 4 of RILY’s largest 7 corporate borrowers with outstanding loan balances of $295.3 million are at a high risk of default, or in the case of CORZQ, is already in default.” FALSE a. Core Scientific Inc. repaid early and in full ($111MM of the “risk”) b. Exela Technologies repaid term loan in full ($55.8MM of the “risk”) c. Arena Group Holdings debt retired in full ($99MM of the “risk”). Publicly disclosed in the most recent 10-K for each company (search for "Riley" in the filing)
5) Wolfpack “RILY’s NAV is Far Below the $1.1 Billion Minimum NAV Requirement That Is Required for the Nomura Credit Agreement Putting RILY at Risk of Collapse in 2023” FALSE RILY is in full compliance with the Nomura credit agreement. Moreover, reflecting the strength of the relationship, Nomura even granted a no-fee extension when the 10-K filing was delayed. Also see 10-K for current status.
6) Wolfpack “Over $200 Million of the Goodwill and Intangible Assets on RILY’s Balance Sheet is Attributable to its Telecom Rollup, which is Centered on Dial-up and DSL Internet:” - criticizing them as dying businesses with no value FALSE Segment is extremely valuable. From just 2020 to 2023, the communications segment has returned over $212.2MM in adjusted EBITDA.
7) Nate Koppikar (TheFriendlyBear) + Bill Abbate Jr. (JrAbbate), Various RILY committed fraud with loans and closing the FRG acquisition. "The fact $RILY closed the FRG deal while hiding the Kahn loan - an all PIK defaulted loan backed by $FRG shares - is a Hall of Fame worthy act of fraud. I thought after Enron/Sarbox we couldn't have something like this happen in US markets." FALSE A law firm led an internal investigation, and an independent external investigation both found “The review confirmed what the Company previously disclosed: that the Company and its executives, including Bryant Riley, had no involvement with, or knowledge of, any of the alleged misconduct concerning Prophecy.” “The results of the independent investigation confirmed that the Company and its executives had no involvement with, or knowledge of, any of the alleged misconduct concerning Mr. Kahn or any of his affiliates. This independent investigation was conducted subsequent to the Company's February 22, 2024 disclosure of the internal review performed with the assistance of Sullivan & Cromwell LLP as outside counsel.” Also see 10-K
8) Marc Cohodes (AlderlaneEggs), ParrotCapital, Bill Abbate Jr. (JrAbbate), Various The 10-K will never be filed. They can't produce audited financials. FALSE Audited 10-K was filed. Delay was due to Audit committee fulfilling its responsibilities and proactively conducting investigations (internal and external).
9) Marc Cohodes (AlderLaneEggs) + Nate Koppikar (TheFriendlyBear) + Bill Abbate Jr. (JrAbbate) + ParrotCapital Sullivan and Cromwell knew about Massive Fraud, and did a "sham investigation" FALSE Sullivan and Cromwell is one of the most respected law firms, in the US and worldwide. "Sullivan & Cromwell continues to lead all law firm advisers in announced and completed global deals in 2023, according to Bloomberg and LSEG. The Firm advised on global announced deals totaling more than $345 billion, representing a 12.1 percent market share, per Bloomberg, and on completed global deals totaling more than $431 billion, representing a 16.9 percent market share, per LSEG." They're not compromising themselves for a relatively small client.
10) Marc Cohodes (AlderLaneEggs), Nate Koppikar (TheFriendlyBear), Bill Abbate Jr. (JrAbbate), Parrot Capital Marcum is enabling Massive Fraud FALSE Marcum is a respected audit firm, and 13th largest by revenue. "Marcum LLP advanced into the Top 15 in the 2023 Vault Accounting list of top-ranked accounting firms. Marcum climbed six levels to the No. 13 ranking overall and earned a ranking of 14 in prestige. The Firm also won Top 20 rankings across all Practice Area, Quality of Life, and Diversity categories, including several new classifications added this year."
11) Marc Cohodes (AlderLaneEggs) Nomura is enabling Massive Fraud FALSE Nomura is a global financial services company, and the oldest brokerage firm in Japan. They operate in a highly regulated industry. They're not putting themselves on the line for a relatively small client.
12) Parrot Capital "The list of $RILY enablers is massive: Marcum LLP, Sullivan and Cromwell, Seeking Alpha, Holbrook Holdings, $AX Axos Bank, Many, many more." FALSE There's no global conspiracy whereby these companies - all respected law firms, auditors, banks, and media outlets - are collectively colluding to enable RILY to commit fraud. Requires only two brain cells and one functioning synapse to know there's no grand collusion cabal between these disparate companies.
13) Marc Cohodes (AlderLaneEggs), Jonathan Weil at WSJ Franchise Group shares used to secure Kahn loan: "It is unclear whether Kahn pledged the same shares twice—to both Prophecy and B. Riley." FALSE As stated by the company, Simple UCC search disproves this. UCC # 202302295747
14) Marc Cohodes (AlderLaneEggs) “Bryant Riley is on the Road, telling people the ‘audit partner at Marcum left’ and that ‘I have made mistakes’ “ FALSE Marcum audit partner was working on the audit the whole time; the original audit partner had hit the 5yr SEC rule, so he was never working on this year’s audit.
15) Marc Cohodes (AlderLaneEggs) "So it turns out James La Rocca was Fired by MarcumLLP If nothing was wrong with prior $RILY Audits, why is he gone? This will be great in discovery of what exactly went on. FALSE Marcum audit partner was working on the audit the whole time; the original audit partner had hit the 5yr SEC rule, so he was never working on this year’s audit.
16) Koppikar (TheFriendlyBear) “So Bryant Riley did disseminate MNPI back in March” in response to Cohodes claim that he told people the Marcum partner left FALSE Cohodes claimed Bryant Riley was telling people the Marcum auditor left. Koppikar called that disseminating MNPI. Cohodes statement was false (and thus Koppikar's derivate claim is also false). A different auditor worked on RILY, as Marcum follows the SEC rules; the lead auditor can only serve the client for 5 consecutive years. As such, Koppikar’s derivative claim of disseminating MNPI is false.
17) Koppikar (TheFriendlyBear) “He appears to still not be familiar with the voting interest model of consolidation… why is a life science and tech partner signing an extremely complex investment company / broker dealer audit ???” i.e., auditor is unqualified FALSE The auditor is fully qualified. Marcum is a highly respected auditor; they don't hire unqualified people, or assign them to clients they're unqualified to audit. RILY is continuing to use Marcum as the 2024 auditor.
18) Marc Cohodes (AlderLaneEggs) "Now that the $RILY dividend is going away, this omission is serious stuff" FALSE The dividend did not go away. It was reduced from $1.00/share to $0.50/share, to allow them to opportunistically allocate capital. 23Q4 and 24Q1
No source images included for the claims, as this sub disallows images in posts and comments. Images can be seen on a version of this posted to a sub that discusses RILY. All claims can be sourced on the various social media venues and websites utilized by the short sellers. Other sources include: https://wolfpackresearch.com/research/rily/ and here https://friendlybearresearch.com/wp-content/uploads/2023/12/RILY-Analyst-Day-Questions-12_11_13-Final.pdf and https://www.institutionalinvestor.com/article/2cpgaejc45gocvoqb1ngg/corner-office/how-b-riley-garnered-the-biggest-short-interest-of-2023 and https://www.wsj.com/finance/how-an-unremarkable-deal-became-a-big-threat-to-a-small-investment-bank-f819a169 . https://adviserinfo.sec.gov/firm/summary/304196 form ADV. This is not financial advice. All claim summarizations reflect my interpretation of the short seller claims, and should be verified against original sources, along with all counters. Due to Reddit image attachment limits, not all source images are included (but any missing can be found on TwitteX or other publicly available sources).
submitted by BleepBlimpBop to WallStreetbetsELITE [link] [comments]

2024.05.21 18:23 BleepBlimpBop $RILY: Long List of Short Seller Claims --- DEBUNKED

Ever-shifting Short Seller Claims

The short sellers attacking RILY in 2023-2024 have been relentless (currently 57% of float sold short per FinViz), with an ever-shifting list of wild accusations.
It's sickening to watch them compile a never-ending list of baseless wild theories and claims to support their short positions, which are demonstrably false. But as each is proved false, they pivot to new claims, and/or change the goalposts.
The sheer volume of shifting claims makes it hard to track how despotic they are with their "platform," and how many falsehoods they've spun. Even for someone who watched it in real-time, for almost a year

Compiled & Debunked

Sunlight kills vampires. To that end, I've compiled a list of (i) claimants (ii) claims (iii) reality (iv) definitive source proving reality.

Why Did They Target RILY?

One of the most vocal short sellers, Nate Koppikar (who also introduced Marc Cohodes to the "opportunity") has a fund Orso Partners. Based on their SEC registration document, this is their investment thesis:
"The Account’s investment objectives are to achieve capital appreciation primarily by identifying and selling short marketable equity securities of underfollowed and complex companies with misleading or corrective disclosures through a research-intensive process. The Account employs a short-biased investment strategy with an emphasis on primarily small to mid-cap companies that are underfollowed and complex (i.e., companies with market capitalizations of less than $5 billion which the market does not yet have a wellformed bull and/or bear perspective)."
RILY fits their description. The icing on the cake was the relatively large market cap, and the relatively small float. Given extremely high insider ownership (32.9% of shares per the proxy), and limitations on when and how insiders can trade, the "free float" of the stock (i.e., the shares that regularly trade) is very small for the size of the company. Moreover, the setup would only get better - given insiders have consistently used their free cash to buy additional shares hand-over-fist (further reducing the float).
That meant, with relatively small amounts of capital, the short sellers could shove around the stock price. That ability to move price opens another profit avenue - taking large derivative positions (buying puts, and selling calls), and shoving the price (or allowing it to drift up) to profit all along the way. It looked so good, the stock has been the highest-shorted on the US indices for several months. Even after the release of the 10-K, shares remain "hard to borrow" with elevated borrow fees.

Debunked Claims

The claims made by vocal short sellers could fill a book. Most were outrageous and fanciful when they were proposed. Virtually all have objectively debunked. This isn't a comprehensive list, as their claims are too numerous and varied. But it paints an illuminating picture.
With a track record this poor, one would expect the short sellers to exit - rather than continuing to spin new narratives. Perhaps the continued attacks are their exit strategy to avoid bankruptcy... Well, #Bullish.
With the highest short interest of all US stocks (albeit likely decreased from the highs of ~76% of the float), I think this is more than ripe for a return to fair value - or well above, if a short squeeze occurs.
Note that the list below deliberately excludes three types of posts/claims from the short sellers:
A) Juvenile personal attacks and attempts to character assassinate and dox a long list of people (RILY CEO, RILY new hires, RILY clients, Marcum the auditor, Marcum's lead audit professional, any firm or individual publicly posting a bull thesis on RILY, etc.).
B) Those that make no objective claims, but simply exist as a product of malicious degeneracy (like pictures of roasted pigs in ovens labeled Bryant Riley the CEO, photoshopped pictures of the CEO in prison chains next to convicted felons, video of an obese woman barely able to walk being gored by a bull labeled Mrs. Riley the CEO's wife, etc.).
C) Those that are impossible for short sellers to know, and impossible to objectively verify (e.g., Marc Cohodes claiming a single RILY trader front runs the CEOs personal short trades in front of clients taking following the firm's bullish advice on those stocks, to guarantee profits).
Claimant Claim Reality
1) Wolfpack Wolfpack “RILY will record investment losses of up to ~$700 million in 2023” FALSE 10-K FALSE
2) Wolfpack “new loan to CORZQ will work out just as badly as the last and end in default (again) before June 2023” FALSE Repaid in full, early, on 1/6/2024.
3) Wolfpack “The coupon rate on RILY’s seven issues of baby bonds ranges from 5% to 6.75%, which we believe to be far too low to compensate investors for the existential risk that accompanies these securities.” FALSE Full redemption of May 2024 came early. Far more than sufficient cash to cover debt payments.
4) Wolfpack “According to our analysis, 4 of RILY’s largest 7 corporate borrowers with outstanding loan balances of $295.3 million are at a high risk of default, or in the case of CORZQ, is already in default.” FALSE a. Core Scientific Inc. repaid early and in full ($111MM of the “risk”) b. Exela Technologies repaid term loan in full ($55.8MM of the “risk”) c. Arena Group Holdings debt retired in full ($99MM of the “risk”). Publicly disclosed in the most recent 10-K for each company (search for "Riley" in the filing)
5) Wolfpack “RILY’s NAV is Far Below the $1.1 Billion Minimum NAV Requirement That Is Required for the Nomura Credit Agreement Putting RILY at Risk of Collapse in 2023” FALSE RILY is in full compliance with the Nomura credit agreement. Moreover, reflecting the strength of the relationship, Nomura even granted a no-fee extension when the 10-K filing was delayed. Also see 10-K for current status.
6) Wolfpack “Over $200 Million of the Goodwill and Intangible Assets on RILY’s Balance Sheet is Attributable to its Telecom Rollup, which is Centered on Dial-up and DSL Internet:” - criticizing them as dying businesses with no value FALSE Segment is extremely valuable. From just 2020 to 2023, the communications segment has returned over $212.2MM in adjusted EBITDA.
7) Nate Koppikar (TheFriendlyBear) + Bill Abbate Jr. (JrAbbate), Various RILY committed fraud with loans and closing the FRG acquisition. "The fact $RILY closed the FRG deal while hiding the Kahn loan - an all PIK defaulted loan backed by $FRG shares - is a Hall of Fame worthy act of fraud. I thought after Enron/Sarbox we couldn't have something like this happen in US markets." FALSE A law firm led an internal investigation, and an independent external investigation both found “The review confirmed what the Company previously disclosed: that the Company and its executives, including Bryant Riley, had no involvement with, or knowledge of, any of the alleged misconduct concerning Prophecy.” “The results of the independent investigation confirmed that the Company and its executives had no involvement with, or knowledge of, any of the alleged misconduct concerning Mr. Kahn or any of his affiliates. This independent investigation was conducted subsequent to the Company's February 22, 2024 disclosure of the internal review performed with the assistance of Sullivan & Cromwell LLP as outside counsel.” Also see 10-K
8) Marc Cohodes (AlderlaneEggs), ParrotCapital, Bill Abbate Jr. (JrAbbate), Various The 10-K will never be filed. They can't produce audited financials. FALSE Audited 10-K was filed. Delay was due to Audit committee fulfilling its responsibilities and proactively conducting investigations (internal and external).
9) Marc Cohodes (AlderLaneEggs) + Nate Koppikar (TheFriendlyBear) + Bill Abbate Jr. (JrAbbate) + ParrotCapital Sullivan and Cromwell knew about Massive Fraud, and did a "sham investigation" FALSE Sullivan and Cromwell is one of the most respected law firms, in the US and worldwide. "Sullivan & Cromwell continues to lead all law firm advisers in announced and completed global deals in 2023, according to Bloomberg and LSEG. The Firm advised on global announced deals totaling more than $345 billion, representing a 12.1 percent market share, per Bloomberg, and on completed global deals totaling more than $431 billion, representing a 16.9 percent market share, per LSEG." They're not compromising themselves for a relatively small client.
10) Marc Cohodes (AlderLaneEggs), Nate Koppikar (TheFriendlyBear), Bill Abbate Jr. (JrAbbate), Parrot Capital Marcum is enabling Massive Fraud FALSE Marcum is a respected audit firm, and 13th largest by revenue. "Marcum LLP advanced into the Top 15 in the 2023 Vault Accounting list of top-ranked accounting firms. Marcum climbed six levels to the No. 13 ranking overall and earned a ranking of 14 in prestige. The Firm also won Top 20 rankings across all Practice Area, Quality of Life, and Diversity categories, including several new classifications added this year."
11) Marc Cohodes (AlderLaneEggs) Nomura is enabling Massive Fraud FALSE Nomura is a global financial services company, and the oldest brokerage firm in Japan. They operate in a highly regulated industry. They're not putting themselves on the line for a relatively small client.
12) Parrot Capital "The list of $RILY enablers is massive: Marcum LLP, Sullivan and Cromwell, Seeking Alpha, Holbrook Holdings, $AX Axos Bank, Many, many more." FALSE There's no global conspiracy whereby these companies - all respected law firms, auditors, banks, and media outlets - are collectively colluding to enable RILY to commit fraud. Requires only two brain cells and one functioning synapse to know there's no grand collusion cabal between these disparate companies.
13) Marc Cohodes (AlderLaneEggs), Jonathan Weil at WSJ Franchise Group shares used to secure Kahn loan: "It is unclear whether Kahn pledged the same shares twice—to both Prophecy and B. Riley." FALSE As stated by the company, Simple UCC search disproves this. UCC # 202302295747
14) Marc Cohodes (AlderLaneEggs) “Bryant Riley is on the Road, telling people the ‘audit partner at Marcum left’ and that ‘I have made mistakes’ “ FALSE Marcum audit partner was working on the audit the whole time; the original audit partner had hit the 5yr SEC rule, so he was never working on this year’s audit.
15) Marc Cohodes (AlderLaneEggs) "So it turns out James La Rocca was Fired by MarcumLLP If nothing was wrong with prior $RILY Audits, why is he gone? This will be great in discovery of what exactly went on. FALSE Marcum audit partner was working on the audit the whole time; the original audit partner had hit the 5yr SEC rule, so he was never working on this year’s audit.
16) Koppikar (TheFriendlyBear) “So Bryant Riley did disseminate MNPI back in March” in response to Cohodes claim that he told people the Marcum partner left FALSE Cohodes claimed Bryant Riley was telling people the Marcum auditor left. Koppikar called that disseminating MNPI. Cohodes statement was false (and thus Koppikar's derivate claim is also false). A different auditor worked on RILY, as Marcum follows the SEC rules; the lead auditor can only serve the client for 5 consecutive years. As such, Koppikar’s derivative claim of disseminating MNPI is false.
17) Koppikar (TheFriendlyBear) “He appears to still not be familiar with the voting interest model of consolidation… why is a life science and tech partner signing an extremely complex investment company / broker dealer audit ???” i.e., auditor is unqualified FALSE The auditor is fully qualified. Marcum is a highly respected auditor; they don't hire unqualified people, or assign them to clients they're unqualified to audit. RILY is continuing to use Marcum as the 2024 auditor.
18) Marc Cohodes (AlderLaneEggs) "Now that the $RILY dividend is going away, this omission is serious stuff" FALSE The dividend did not go away. It was reduced from $1.00/share to $0.50/share, to allow them to opportunistically allocate capital. 23Q4 and 24Q1
19) Marc Cohodes (AlderLaneEggs) "$RILY doesn't make it till Easter... I will say it again and again.." FALSE They made it, filed a 10-K and paid a dividend, filed a 10-Q and are paying a dividend, and are chugging along. With stock price 50% higher than when this claim was made.
A sampling of the source claims listed above can be found in the images embedded in comments below this post, with additional claims found here https://wolfpackresearch.com/research/rily/ and here https://friendlybearresearch.com/wp-content/uploads/2023/12/RILY-Analyst-Day-Questions-12_11_13-Final.pdf and https://www.institutionalinvestor.com/article/2cpgaejc45gocvoqb1ngg/corner-office/how-b-riley-garnered-the-biggest-short-interest-of-2023 and https://www.wsj.com/finance/how-an-unremarkable-deal-became-a-big-threat-to-a-small-investment-bank-f819a169 . https://adviserinfo.sec.gov/firm/summary/304196 form ADV. Additional claims can be sourced on the various social media venues and websites utilized by the short sellers. This is not financial advice. All claim summarizations reflect my interpretation of the short seller claims, and should be verified against original sources, along with all counters. Due to Reddit image attachment limits, not all source images are included (but any missing can be found on TwitteX or other publicly available sources). Was unable to embed images in the post itself due to a Reddit limitation/bug.
submitted by BleepBlimpBop to RILYStock [link] [comments]

2024.05.21 06:00 throwaway9234781 Need some crucial advice.. In a hard place

I am a 28M, and I have a brother, 30M. My brother has had a very hard time with life up to this point, he has scars on his arms that remind him of his mistakes every single day. He's never been able to hold down a job due to anger issues, and we've been too broke to take him anywhere to be mentally evaluated. I fear he is on the brink of committing suicide and I really need some advice.
Here is our current situation, in my early 20's, I moved to a new city, lived above my means, and racked up roughly 15 grand in credit card debt. Mostly due to depression drinking at bars. My brother at this time, was living with my Mom and working in a bar that he absolutely hated, every day was misery for him. But he felt trapped, no car, and that was the only thing in walking distance that he felt he could actually do. He's always worked in the food industry and doesn't have the self confidence to learn something new at this point. He feels his life is over already. He was making a little over 10 dollars an hour, and spent pretty much all of his money on alcohol, weed, cigarettes, and games just to cope with the state of his life. Fast forward a bit, I noticed after talking with him over the phone that his mental state had taken a massive decline, so I had him move in with me. I grabbed a two bedroom apartment for us, and got him a job. It was unfortunately another pretty soulless bottom of the barrel job, and my brother wasn't cut out for it, quit and found another job in food. After some time, that job ended in disaster as well, he found his manager was totally incompetent and blew up and quit. So this whole time, I'm not making enough money, but completely covering all of our living expenses, so rent, food, and entertainment. At this time, I'm really depressed as well just because of our situation, so I rack up some more debt. I don't even think about it, just put it on the card. Our extremely manipulative mom convinced us both that she was doing better in life and making enough money that she could help him get a car so he could find a better job, and simultaneously give me a chance to catch up on my debt. In reality, nothing had changed, she was still doing the same thing as before, and now my brother moved back in with her to do the SAME THING he was doing before. Because again, no car, bar was in walking distance because my mom moved closer to the bar because she goes there every single day.
After about half a year goes by, and I keep up with my brother, things start going way downhill again. I land a new remote job that paid almost 30K more than my previous job, so I thought it would be a good idea to move in with my Dad with my brother for awhile to try and start over and save some money(My dad lives in the middle of nowhere, closest grocery store is a 10 minute drive). Looking back, it was the worst mistake I've ever made, because now, he's spent the better half of a year sitting in his room, watching rage bait shit on youtube and has become extremely nihilistic and has absolutely no motivation to live. He tells me he hates himself constantly. I have to get us out of here, so here's where I need advice. I had originally planned to stay here for about 6-12 more months and just pay down my debt primarily, which I have put a good dent in it, but I don't have any savings. I've taken a aggressive approach to my debt, so I haven't prioritized putting money away. So right now, I have about 2-3k floating in my account between my auto payments on my two credit cards and one debt consolidation loan.
Realistically, that's not enough to move out, but I feel my brother is at a tipping point and I cant risk keeping him in this situation. I want to move to a city that brings both of us happiness and gives us a new outlook on life outside of sitting on the internet all day.
I've already picked the location, but here are the options I've considered.
  1. I can sell my truck and get a cheaper car, if I sell my truck right now, I'll get roughly 5-6k to my pocket, then I plan to just buy a cheap car to get by and use the extra pocket cash as a buffer for unexpected expenses when we move as well as helping with a deposit on an apartment or something.
  2. I have considered just taking out a personal loan for 15-17k on top of option 1. The difference in car payments will cover the monthly cost of the loan, and give me some financial comfort. Right now, I'm preapproved for 17k loans with an apr around the low 17%'s. I have a 720 credit score at the moment.
If you have made it this far, I appreciate the hell out of you and I apologize for making you read that wall of text. I welcome any feedback that does not involve abandoning my brother.
Edit: Please read my replies to comments for additional context, I missed a little bit here.. Apologies in advance.
submitted by throwaway9234781 to Advice [link] [comments]

2024.05.21 05:24 Pandita_babe Just stop paying? NDR? Bankruptcy?

I am just overwhelmed at this point. I have about 18,000 in debt. 3cc and one personal loan. Wells Fargo - 8,600 Discover - 4,500 Nebraska furniture Mart - 2,000 Personal loan - 3,800
It started as a Wells Fargo card with 12,000 about 3 years ago. I got divorced. Had emergency gallbladder removal. And this year my mom had emergency brain surgery and I had to be home with her for about 2months. Now we are here. The discover and personal loan are from my attempts to debt consolidated on my own..... Clearly I am stupid for that. The other two are from my failed marriage and much of that was caused by my ex. He spent money behind my back constantly and lied about it. I can't keep up with payments or the interest rates or late fees anymore I am overwhelmed emotionally and financially. National debt relief seems better than bankruptcy. My credit score is already shit. But I hear horror stories and then happy endings and don't know what to think. I tried calling the creditors to work out an arrangement and it didn't work. They said I could settle if I could pay within 90 days. So absurd it's laughable. I'm so broke and failing at digging my way out.
submitted by Pandita_babe to Debt [link] [comments]

2024.05.21 04:12 Livid_Direction289 What's gonna happen next?

Late last year I finally finished school at 25 and graduated with an MBA from a smaller college. I was so burnt out by the end because I did it right after my bachelor's. I worked through my entire bachelor's, but not my masters. Thankfully tuition was pretty much covered but not my living expenses. I ended up taking a job at my previous place of work and make decent money but the credit card debt I've accumulated in the mean time is... not ideal to say the least. Flash forward and it's almost been a year and I'm pretty much underwater on my living. I can pay for my rent, insurance and car so I'm definitely fortunate, but a lot of my expenses just end up going on already almost maxed out credit cards. I'm $30000 in debt and I just don't know how to recover when I'm only staying afloat. I finally caved and am trying the debt negotiation to consolidate and lower it but with no interest, but my already low credit is going to take a further beating in the mean time. I don't know how much this will affect me trying to get a better job but it makes me super scared. I'm looking for a second job now, but I already work 50 hours a week. I now feel like I'm gonna have a panic attack because I don't know what to do or if it'll ever get solved. As it is even if this process works I won't be out of debt for like 5 more years and I am ready to call it quits on everything and run away but where would I run and with what money? Hoping saying all this will help me feel better but idk if it will. I've spent the entire day feeling like I'm gonna throw up.
submitted by Livid_Direction289 to offmychest [link] [comments]

2024.05.21 03:31 _ponds IDR eligible & ineligible loans and should/shouldnt consolidate

Long story short: on leave from PA school (physician assistant) due to grades and wife with recent newborn. Almost 90K USD in loans, some undergrad and most from my 3 semesters of didactic. Have a 40K job right now for this 1 year of leave, and I plan to go back to school as I still retain a seat in the program. Grace period is ending and I’m trying to see my repayment options, like SAVE. I went to apply for IDR and saw I have ineligible loans for IDR, and if I should then consolidate those.
1) Should I consolidate those ineligible loans? I could consolidate ALL of them (IDR-eligible Direct Consolidated loans of my undergrad student debt and my Direct Grad PLUS loans…. and IDR-ineligible Direct Stafford subsidized and unsub).
2) Of those eligible loans, I would be on IDR (SAVE) which would only be a few dollars, right? Those payments are very doable. So I don’t need to consolidate ALL my loans?
3) When I go back to school, all these would pause payments right, Would it be better to just consolidate all my loans, thinking in terms of post-graduation loan tidyness and ease? But then I wouldn’t have a grace period on these loans vs. the new Grad PLUS loans I would take out when I return to school, right? So I have that to be mindful of.
TIA! Advice is greatly appreciated
submitted by _ponds to StudentLoans [link] [comments]

2024.05.21 03:14 Old_Party3623 Two peoples loans

I am a first generation grad and have a decent amount of debt, I don't really know who I can talk to so I wanted to post here.
I have 30 k in subsidized and unsubsidized Federal loans currently provided by Aidvantage in 10 loans (2 for each semester I attended from FAFSA).
I used my mom to file for Parent Plus loans and have about 72k owed provided by MOHELA seperated into 3 Loans.
I did this because I was scared of the private horror stories and my interest is not bad on all of these loans despite the high principal. I haven't made a single payment yet since graduating. Between both of these expected monthly payments of 1100$ which I can't afford. I'm seeing a bunch of stuff for double consolidation to get my Parent Plus considered for IDR but it's confusing to me and I need to do more research. I also don't know how to pay the least when my loans are technically under two different people, would IDR even work since I'd be doing it both for my Federal loans and my (technically my parents) Parent Plus loan? Is there anybody I can call to ask for help or anybody in a similar situation?
submitted by Old_Party3623 to StudentLoans [link] [comments]

2024.05.21 00:27 MoNeenja31 Up to $27k in credit card debt - Debt consolidation worth it?

So unfortunately over the past year, I racked up an enormous amount of credit card debt and have been struggling to pay the full balances. The debt was accrued due to a bad contractor not carrying out his work for a remodel on our house we bought, resulting in having to hire a new contractor and re purchase new materials and hiring a lawyer.
I make about $65k / year before taxes and my only other income is from rent ($1,750) from a tenant that just moved in 2 months ago after owning the house for a year and food delivery on the side. I've been getting non stop letters in the mail from various places, offering loans from 30k to 75k and various interest rates.
I called up one place called Accredited Debt Relief and they told me I qualify for their debt consolidation program which consist of $215 payments bi-weekly for 48 months to clear my debt. I told them I'll think about and I've been getting calls from non-stop, which just seems very desperate.
What are the pros/cons of these programs? Would it result in me defaulting in some of my credit card bills or tanking my credit score? Would this negatively impact me in the future if I were to clear my debt and buy another house?
submitted by MoNeenja31 to personalfinance [link] [comments]

2024.05.21 00:26 jellydotsadventure Looking for Lead Gen Affiliate Partners. Offering commission starting at 25% per referral

We are an AI chatbot company called Upbeat.Chat focused on lead qualification & lead conversion. Our company specializes in websites with high ad spend to drive traffic. The bot we built helps qualify leads and increase conversion. We do not use GPT; instead, we use our own trained model, which has been our key differentiator.
We are targeting lead generation companies in the medical, insurance, debt consolidation, loan, and legal sectors, but we are open to other fields as well within the professional space. We can work with a wide range of high-traffic websites. Our platform includes various tools, such as different types of bots and analytics.
We are looking to grow in this space and are offering strong referral incentives starting at 25%, with the potential for negotiation for high-value referrals.
Send me a DM if interested!
Thanks
submitted by jellydotsadventure to Affiliatemarketing [link] [comments]

2024.05.21 00:25 Moocao123 Vertical integration of the healthcare insurance and service without PBM or analytics support - the case of Bright Health Group (now known as NeueHealth)

Vertical integration of the healthcare insurance and service without PBM or analytics support - the case of Bright Health Group (now known as NeueHealth)
Good evening fellow Healthcare_Anon members
As previously discussed, we will go ahead and review a case study of the vertical integration of the various services of the healthcare industry, which if done correctly, does indeed pose a very big beast and will be difficult to compete against. In this case for Bright Health Group (BHG), the hydra died before the heads sprouted properly. While BHG carcass continues to rot, one of its investors Cigna has completely exited Medicare Advantage in 2024 - Cigna lost $750 million dollars to prop up BHG in 2021 and will sell its MA division for $3.7B.
Bright Health banks $750M investment from Cigna Ventures, New Enterprise Associates Fierce Healthcare
Cigna inks deal to sell Medicare business to HCSC in $3.7B deal (fiercehealthcare.com)
We therefore wonder, what went wrong? Again, let us review the following paper as our point of reference:
Rooke-Ley H, Brown E, Grumbach K, Hoffman A, Ryan A, Roy V, Grogan C, Appelbaum E, Lipschutz D. Medicare Advantage and Vertical Consolidation in Health Care. American Economic Liberties Project, April 2024. Available: https://www.economicliberties.us/our-work/medicare-advantage-and-vertical-consolidation-in-health-care/#, accessed 05/19/24 (for this subreddit post)
Which stemmed from a discussion post thanks to u/ Fabulous-airport-273.
Without further ado, let us proceed.
" Next, consolidation allows vertical conglomerates to steer revenue to their sister subsidiaries, such as primary and specialty care, post-acute care, and pharmacies. This not only enables them to skirt federal regulations intended to cap profits; it also drives out independent providers and allows conglomerates to steer patients away from expensive yet medically necessary care. Steering care generates “captive revenue” for vertical conglomerates. Bright Health, an MA insurance company that recently sold to Molina, depicted this strategy to investors. As shown in Figure 2, insurers see provider ownership as the “margin accelerator.” This is because ownership of the practice unlocks revenue from all third-party payers (i.e., other insurance companies and government payers with patients served by that provider), and it allows the insurance companies to retain more of their capitation payments through captive revenue. "
This paragraph is highly important, which we will further discuss within a separate post.
https://preview.redd.it/o0ltokpkhn1d1.png?width=1014&format=png&auto=webp&s=06b67c47816c26282211ffa62d2fd0e8d14f71cb
Bright Health Group's business plan is basically a similar copy of UNH without Optum Rx and Optum Insight, however it failed in 2 parts - it didn't do the insurance part properly, and it didn't have the service section up and running. Do note that both Optum Rx and Optum Insight provided a large part of UNH profits and has considerable profits/revenue ratio. Therefore if Bright is unable to leverage the insurance section and create appropriate margins within the service section, then the whole edifice collapses.
Let us review their 10K prior to the end of its existence:
Source:
  1. neue-20231231 (sec.gov)
  2. bhg-20221231 (sec.gov)
https://preview.redd.it/pn3vnva2yo1d1.png?width=759&format=png&auto=webp&s=cb9f4292e98b62134140193d2a1fa975c67a400c
As you can see, Bright Health Groups insurance segment did NOT do well, and did not leverage the insurance section. Even worse, if you look at the revenue YoY of the service section in comparison to the cost section, the cost of generating the revenue is much higher within segment while did not generate ANY service revenue return as a YoY basis. In fact operating cost in % of revenue increased from 2022 to 2023, and total revenue decreased. MCR is also atrocious overall, with no year at < 90%.
If you recall in my previous BHG Bankruptcy DD, you will also note that BHG was very busy building clinics and eating a big hole in investor pockets doing so, including Cigna's $750 million dollars. The reason why this was needed was it is part of BHG's business plan. Ultimately it failed, because it neither had the expertise in managing its insurance segment (with MCR consistently north of 90%) and it did not have an adequate baseline infrastructure for the service section under NeueHealth, nor was it optimized. This is in contrast with UnitedHealthcare group and its subdivision of United Health group and Optum.
Financially, Bright was strapped for cash by end of 2023, and somehow didn't notice it overdrew its credit facility from JP Morgan Chase. As Hoyt so eloquently put it - you don't owe JPM money, Jamie Dimon isn't known to be charitable (how else did he eat the Vampire Squid's lunch? If you aren't sure what I am talking about, you haven't read Matt Taibbi at his prime). Therefore Bright Healthgroup had to amputate itself from its Bright Healthcare division, with only Neuehealth remaining.
NeueHealth is still alive, but on life support. It claimed it had positive adjusted EBITDA, which may be true, but it still owes CMS a lot of money for risk adjustment revenue from Bright in 2023. Its investor relation page will show you the nice adjusted EBITDA section, but you have to look at its debt and liabilities as well.
https://preview.redd.it/9uw9i0g6on1d1.png?width=1856&format=png&auto=webp&s=501ae4bcdec6385c94003c74964a554d67b7ec68
https://preview.redd.it/a0ns5bmzon1d1.png?width=1849&format=png&auto=webp&s=3b453fcdbffcd0857f4280a46033110446d04e7d
This last chart is actually the most important one: net decrease in cash of $126 million dollars, with $250 million dollars left in the bank. That gives 2 more quarters of cash burn at the same rate of cash burn. NeueHealth's life support is ending soon? Who gets to take a piece of this and inherit all the bad liabilities?
In conclusion - the failure of BHG is in direct relation to its failure in cost containment within the insurance segment, and at the same time, having inefficient or not optimized service division that can staunch the bleeding. In contrast, UNH is leveraging its UHG insurance segment and supplementing the Optum segment, delivering impressive EPS.
Thank you for taking the time to read through this. I hope this provides you with a better perspective on a glimpse of the landscape that I am personally aware. Please submit your comments below on your thoughts
Sincerely
Moocao
submitted by Moocao123 to Healthcare_Anon [link] [comments]

2024.05.20 23:03 DevonWMorris How to get a $15,000 loan with no car/fairly bad credit.

I ran up a ton of credit cards in my early years (I was dumb) and have a total of $15,000 in debt across them all. All the payments and interest rates are stacking up and it’s costing me WAY too much per month and I’m making zero movement. I am looking into a loan for the total of $15k to consolidate into one monthly payment, however I have no car and about a 570 credit score, and keep getting declined. I refuse to do one of those “debt consolidation” programs because I have a 100% payment history and want to keep it that way and not go delinquent. What should I do?
submitted by DevonWMorris to personalfinance [link] [comments]

2024.05.20 22:27 Paintingncomplaining I’m finally ready to fight for the life I want

I went through something really interesting this weekend. I received my check from work and it was WAY bigger than usual, I called up my co workers and they all got a increase also and for some reason idk why we all thought it was a raise. (7 dollar an hour raise I really should’ve thought something was up but hindsight is 20/20) I was extremely emotional talking to my friends / bf about how my whole life was going to change I was going to be able to get out of debt, fix my car, save money and just generally have a brighter future. Then I got a call from a co worker she found out it was just a bonus. I was heart broken of course I shed a few tears. Yet this has really opened my eyes to the fact that no one’s gonna save me and I need to pull myself up by my boot straps and find a way out of my situation. I’m going to enroll in college again in August I think I want to get my paralegal certification. I want to start budgeting better maybe consolidate my debt. I want to take better care of my body and mental health so I can be strong for the uphill battle I’m about to fight. I think this was a blessing is disguise. I’m dead set on success and I’m ready to struggle my way to it. No ones gonna captian save a ho’ me and that’s a-okay.
submitted by Paintingncomplaining to TrueOffMyChest [link] [comments]

2024.05.20 19:25 SquirtleChimchar [OC] Embassy debt to Transport for London

[OC] Embassy debt to Transport for London submitted by SquirtleChimchar to MapPorn [link] [comments]

2024.05.20 17:53 Ambitious_Fig2168 SAVE + leftover loan money?

Hello,
Recently graduated, about to start a 3 yr residency. I have around 300k in loan debt, mix of direct and indirect. From what I understand already, it sounds like the SAVE plan is probably my best bet and possibly aiming for PSLF. If I understand correctly, when you sign up for SAVE it consolidates your direct and indirect loans and you get a new averaged interest rate? In that case, I have about $20k of loan money leftover that I'm not sure what to do with. I have paid most of my expenses related to moving for residency, etc. My school said I can't pay on the loan through them at this point and must go through the loan servicer. Is my best use of this money to throw at the loan after consolidating? Or should I stick it in a HYSA and sit on it?
Also, I filed taxes this year showing $0 income so I think I am set for SAVE. Any further advice on managing the loans as a rising PGY1?
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2024.05.20 17:53 Lord-Wingus-lll Need Help

Long story short. I made many poor financial decisions in my early to mid 20s. I now have about $30,000 in debt, but now we have a child on the way.
We live paycheck to paycheck with a little reserve. But there is no way we can afford child care with us both working. We make a little to much to qualify for any government childcare assistance, and too little for one of us to be a stay at home parent.
I have thought about using a debt consolidation, but I know so little about them that I am unsure if that's a good idea.
Can anyone please provide some information? Any help is appreciated!
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2024.05.20 14:37 loanpandit2023 SME Loans: A Comprehensive Guide for Small and Medium Enterprises

For small and medium enterprises (SMEs), access to financing is often the key to unlocking growth potential, seizing new opportunities, and overcoming financial hurdles. In this ever-evolving business landscape, SME loans have emerged as a vital resource, offering a lifeline to entrepreneurs and business owners seeking to propel their ventures forward.
Whether you're looking to expand operations, purchase equipment, or bridge cash flow gaps, understanding the intricacies of SME loans can empower you to make informed decisions and secure the funding you need to thrive.
In this comprehensive guide, we'll explore the world of SME loans, delving into their types, eligibility criteria, benefits, application processes, and more. Get ready to unlock the secrets of successful SME financing and take your business to new heights.

What are SME Loans?

SME loans, also known as small business loans or commercial loans, are specialized financial products designed to cater to the unique needs of small and medium-sized enterprises. These loans provide businesses with access to capital, enabling them to fund various aspects of their operations, such as:
SME loans can be obtained from various sources, including banks, credit unions, online lenders, and government-backed financing programs.

Types of SME Loans

SME loans come in various forms, each tailored to address specific business needs. Here are some of the most common types:
  1. Term Loans: These are lump-sum loans with a predetermined repayment schedule, typically ranging from 1 to 10 years. Term loans are suitable for long-term investments, such as purchasing equipment or real estate.
  2. Working Capital Loans: Also known as business lines of credit, these loans provide SMEs with a revolving credit facility to cover short-term operational expenses, manage cash flow gaps, and seize time-sensitive opportunities.
  3. Equipment Loans: As the name suggests, equipment loans are designed specifically for acquiring machinery, vehicles, or other essential business assets. These loans often use the purchased equipment as collateral.
  4. Invoice Financing: This type of financing allows SMEs to leverage their outstanding invoices by receiving an advance payment from a lender, who then collects the full invoice amount from the customer.
  5. Merchant Cash Advances: Suitable for businesses with steady credit card sales, merchant cash advances provide upfront capital in exchange for a percentage of future credit card receivables.

Eligibility Criteria for SME Loans

Lenders typically evaluate several factors to determine an SME's eligibility for a loan. While criteria may vary, here are some common considerations:

Benefits of SME Loans

SME loans offer numerous advantages to small and medium-sized businesses, including:
  1. Access to Capital: SME loans provide the necessary funding to fuel business growth, seize opportunities, and overcome financial obstacles.
  2. Flexibility: With various loan types and repayment terms, SMEs can choose a financing solution that aligns with their specific needs and cash flow.
  3. Business Expansion: Loans can facilitate the expansion of operations, such as opening new locations, increasing production capacity, or entering new markets.
  4. Asset Acquisition: SMEs can leverage loans to invest in essential assets like machinery, equipment, or real estate, enhancing their operational capabilities.
  5. Improved Cash Flow Management: Working capital loans and invoice financing help SMEs maintain a steady cash flow, ensuring they can meet their financial obligations and take advantage of timely opportunities.

Applying for an SME Loan

To increase your chances of securing an SME loan, it's essential to follow a strategic approach. Here are some key steps in the application process:
  1. Gather Required Documents: Lenders typically require various documents, such as financial statements, tax returns, business registration documents, and personal identification.
  2. Prepare a Comprehensive Business Plan: A well-crafted business plan that outlines your company's goals, strategies, and financial projections can strengthen your loan application.
  3. Shop Around and Compare Lenders: Research various lenders, compare interest rates, fees, and loan terms to find the most suitable option for your business.
  4. Submit a Complete Application: Ensure that your loan application is complete and accurate, providing all the necessary information and supporting documents.
  5. Be Prepared for Additional Documentation: Lenders may request additional documentation or clarification during the evaluation process.
  6. Negotiate Terms and Rates: Once approved, review the loan terms and negotiate for better rates or repayment schedules if possible.

Conclusion

SME loans are a crucial financial resource for small and medium-sized enterprises, enabling them to navigate challenges, seize opportunities, and achieve sustainable growth. By understanding the types of loans available, eligibility criteria, benefits, and application processes, business owners can make informed decisions and secure the funding they need to propel their ventures forward.

FAQs

Q.1 What is the difference between an SME loan and a personal loan?
SME loans are specifically designed for business purposes, while personal loans are intended for individual use. SME loans generally offer higher loan amounts, different repayment terms, and may require collateral or a business plan.

Q.2 Can a new business qualify for an SME loan?

While some lenders may consider new businesses, most prefer to work with established SMEs that have a proven track record of revenue and profitability. However, government-backed loan programs or alternative lenders may be more open to financing startups.

Q.3 What types of collateral are typically accepted for SME loans?

Common forms of collateral accepted for SME loans include real estate, equipment, inventory, accounts receivable, and in some cases, personal assets of the business owner.

Q.4 How long does it take to get approved for an SME loan?

The approval timeline can vary depending on the lender and the complexity of the loan application. Some lenders may provide approval within a few days or weeks, while others may take several months for a thorough evaluation process.

Q.5 Can SME loans be used for debt consolidation?

Yes, many SME loans, particularly term loans, can be used for debt consolidation purposes. Consolidating multiple debts into a single loan can simplify repayment and potentially provide more favorable terms.
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2024.05.20 14:19 TearRepresentative56 I'm a full time trader and this is everything I'm watching and analysing in premarket 20/05 including positioning analysis on EURUSD, Silver, Gold, Oil and BTC.

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