Author Topic: BH - Biglari Holdings  (Read 1312211 times)

APG12

  • Full Member
  • ***
  • Posts: 221
Re: BH - Biglari Holdings
« Reply #260 on: September 27, 2013, 02:22:20 PM »
Here are the 2012 coverage ratios for a few others:

Wendy's coverage is about 1x
Jack in the Box is 7x
Burger king's is 2x
Mcdonalds is 16x
Denny's is about 3x
Sonic is about 3x

CBRL is presently about 5.5x...a $20 dividend (if they can get the debt @ 4%) would drop the coverage ratio to just under 4x 2012's EBIT, or about 3x if we take a more normalized 5 years of history.

Ah, awesome! I'll be taking a good look at this when I get some time. Did you happen to take into account operating leases? I don't look forward to untangling all of that.  :-\


wescobrk

  • Hero Member
  • *****
  • Posts: 670
Re: BH - Biglari Holdings
« Reply #261 on: September 27, 2013, 02:29:13 PM »
Biglari already has full effective control over BH"

I disagree with this. He's failed 3x getting the votes for the b shares (postponed special meeting)
I agree he can pretty much do anything else though.

LC

  • Hero Member
  • *****
  • Posts: 3446
Re: BH - Biglari Holdings
« Reply #262 on: September 27, 2013, 02:31:08 PM »
Unfortunately not! It was a quick back of the envelope calc for a friend just to see what the I/S would look like after Sardar's proposed dividend.
"Lethargy bordering on sloth remains the cornerstone of our investment style."
----------------------------------------------------------------------------------------
brk.b | irm | mo | nlsn | pm | tap | v | vz | wm

APG12

  • Full Member
  • ***
  • Posts: 221
Re: BH - Biglari Holdings
« Reply #263 on: September 27, 2013, 04:39:43 PM »
Biglari already has full effective control over BH"

I disagree with this. He's failed 3x getting the votes for the b shares (postponed special meeting)
I agree he can pretty much do anything else though.

True! There are some things he can't do, hence the compensation cap.

Quote from: LC
Unfortunately not! It was a quick back of the envelope calc for a friend just to see what the I/S would look like after Sardar's proposed dividend.

Ah shoot. I was hoping I could be lazy. heh.

nwoodman

  • Sr. Member
  • ****
  • Posts: 266
Re: BH - Biglari Holdings
« Reply #264 on: September 27, 2013, 05:07:17 PM »
Cbrl is allowing a vote for his 20 dollar dividend. They advise against it but said in the proxy they will do it if more than half of shareholders vote for it.
We know 20 percent is for it. I would be surprised if more than half didn't vote for it.
Bh will have another almost hundred million.
It's been 5 years and they have only bought western so far.
Maybe we'll finally see an acquisition in the next few months.

Fingers crossed that is about to change and he makes Cheldin at UNAM an offer he can't refuse, like $17-$18 per share ;)

cheers

nwoodman

ragu

  • Full Member
  • ***
  • Posts: 212
    • Personal investing blog
Re: BH - Biglari Holdings
« Reply #265 on: October 01, 2013, 06:14:54 AM »
[But it cannot go on changing so frequently, donít you agree?

giofranchi,

I believe the timing of this change was linked to the rights offering. To the best of my understanding, the BH stock held through the Lion Fund on behalf of the LP's (prior to the sale back to Sardar) would not have been eligible to participate in the rights offering(seeing as it was accounted for as Treasury stock).

Best,
Ragu

giofranchi

  • Hero Member
  • *****
  • Posts: 5509
  • Twitter: @giovfranchi
    • Master School Politecnico di Milano
Re: BH - Biglari Holdings
« Reply #266 on: October 01, 2013, 11:34:37 PM »
giofranchi,

I believe the timing of this change was linked to the rights offering. To the best of my understanding, the BH stock held through the Lion Fund on behalf of the LP's (prior to the sale back to Sardar) would not have been eligible to participate in the rights offering(seeing as it was accounted for as Treasury stock).

Best,
Ragu

Thanks, ragu!
This of course makes a lot of sense. Somehow, I hadnít thought of itÖ ::)

Cheers!

giofranchi
Portfolio: AAPL, AMZN, BABA, BOSS, BRK.B, FB, FFH, FIH.U, FINX, FWONA, GOOG, IBB, JPM, LBRDA, MKL, NKE, QQQ, SFTBF, SMH, TCEHY, V, XBI, XT

ragu

  • Full Member
  • ***
  • Posts: 212
    • Personal investing blog
Re: BH - Biglari Holdings
« Reply #267 on: October 02, 2013, 12:29:41 AM »
This of course makes a lot of sense.

giofranchi,

Welcome. I fear I didn't get this at first either. Phil had been pretty clear at the 2012 AM that the compensation cap would go away. So, my initial thought here was that this was a way to remove the cap and avoid a shareholder vote that wasn't likely to be favourable at any rate (time was also running out on Sardar's option to buy it back from BH).

A day or two back, I ran into a filing that detailed the Lion Fund's change in shares owned as a result of the rights offering and it struck me that the rights could not have been exercised if the LF were still owned by BH.

I find this handy when I analyze Sardar's actions:

Never attribute to malice that which can be adequately explained by rationality.

Best,
Ragu

giofranchi

  • Hero Member
  • *****
  • Posts: 5509
  • Twitter: @giovfranchi
    • Master School Politecnico di Milano
Re: BH - Biglari Holdings
« Reply #268 on: October 02, 2013, 02:59:49 AM »
I find this handy when I analyze Sardar's actions:

Never attribute to malice that which can be adequately explained by rationality.

Best,
Ragu

I couldnít agree with this more!! (even though we are the only ones... ;D ;D)

giofranchi
Portfolio: AAPL, AMZN, BABA, BOSS, BRK.B, FB, FFH, FIH.U, FINX, FWONA, GOOG, IBB, JPM, LBRDA, MKL, NKE, QQQ, SFTBF, SMH, TCEHY, V, XBI, XT

ragu

  • Full Member
  • ***
  • Posts: 212
    • Personal investing blog
Re: BH - Biglari Holdings
« Reply #269 on: October 02, 2013, 09:57:28 AM »
I couldnít agree with this more!! (even though we are the only ones... ;D ;D)

I console myself with the knowledge that we're right.

Best,
Ragu