Author Topic: BH - Biglari Holdings  (Read 1175302 times)

Txvestor

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Re: BH - Biglari Holdings
« Reply #2630 on: June 25, 2018, 11:16:22 AM »
The more A shares he has the more he can dilute B shares with impunity as well.


Foreign Tuffett

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Re: BH - Biglari Holdings
« Reply #2631 on: June 25, 2018, 12:10:47 PM »
The more A shares he has the more he can dilute B shares with impunity as well.

He already has voting control over the company. What difference does it make if he controls 70% of the vote vs 85% of the vote? B shares don't have any voting power whatsoever, so he can already issue them with impunity from a voting power perspective.

globalfinancepartners

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Re: BH - Biglari Holdings
« Reply #2632 on: June 25, 2018, 02:03:09 PM »
I think he would prefer to have personal voting control vs controlling the voting of the company owned shares.  He has beneficial ownership of enough A shares to control the company, but over time I think he would prefer to have actual ownership of enough A shares to at least exercise control.  If the Lion Fund sells BH shares, they will be B shares.  If the company issues shares, they will be B shares.  He will get additional personal ownership of A shares through his incentive reallocation if he can produce future investment management performance that earns it for him.  I'm sure he would like to earn those A shares out of the Lion Fund over time.  We'll see what he can do results wise.  He hasn't done much lately.

pcm983

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Re: BH - Biglari Holdings
« Reply #2633 on: June 26, 2018, 04:05:26 PM »
I was wondering if anyone hear knows how Sardar got his start in activism. It seems fairly vague to me from what I can find - that he had an older business partner who helped get him started but I was just curious if anyone that has been following the story knows more of the details. Thanks in advance

globalfinancepartners

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Re: BH - Biglari Holdings
« Reply #2634 on: June 26, 2018, 04:25:28 PM »
Sanjeev might remember more, but I think he got started in activism with the tiny company Western Sizzlin', which had a few microcap value investors poking around at it.  I remember driving to one in Southern Illinois to check it out and passing.  Worked out for Sardar, though..

OracleofCarolina

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Re: BH - Biglari Holdings
« Reply #2635 on: June 26, 2018, 05:39:41 PM »
Take a look at the “archived post”.

Txvestor

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Re: BH - Biglari Holdings
« Reply #2636 on: June 28, 2018, 09:41:55 PM »
We'll see what he can do results wise.  He hasn't done much lately.

What about Biglari Cafe? Or Maxim's four year $50-million plus loss? Or the loss of 65% of his investment on Insignia? Or the loss of 75% of his investment on Valeant? Or Steak n Shake's two consecutive years of customer-traffic losses? Or Steak n Shake flipping from a positive net income to negative net income? 

He has done all of those things, or overseen them, lately.

You are right NBL. Its put up or shut up time and he has ridden the CBRL pony and its BV and tax basis shenenigans, as well as leveraged the company as far as its going to take him. Now he has to produce if he can or risk the enterprise. His cash cow SnS, is no longer that, and the fix for that is not nearly as easy as one might think. Sometimes brands just die and there is nothing one can do about it. None of the recent investments have had any positive outcome as you mentioned. So what is it worth? It depends, on what you think of Biglari's investment prowess. If you are a beleiver then $186/share is cheap. If you do not, then it is dead money at best and a dwindling investment at worst. It will for sure be an interesting story however. I stayed on the train as long as I could, but i can only afford to watch from the sidelines now.

Foreign Tuffett

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Re: BH - Biglari Holdings
« Reply #2637 on: July 13, 2018, 11:25:31 AM »
Looks like there is some pockets of anxiety regarding Steak n Shake's debt

https://platform.reorg-research.com/public/article/NTcxMzkg

OracleofCarolina

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Re: BH - Biglari Holdings
« Reply #2638 on: July 13, 2018, 01:09:36 PM »
Not surprised with the direction the restaurant business has been going...I hope Sardar gets this thing turnaround or it could get very ugly quickly.

NBL0303

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Re: BH - Biglari Holdings
« Reply #2639 on: August 03, 2018, 12:20:47 PM »
Data from a number of different sources - other companies, credit card data, and a few other places - suggest to me at least that Steak n Shake probably had a very, very difficult quarter. It will be interesting to see how bad it was.