Author Topic: BH - Biglari Holdings  (Read 1314815 times)

Kraven

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Re: BH - Biglari Holdings
« Reply #340 on: December 06, 2013, 04:28:40 AM »
It is nothing but old fashioned "green mail" from the 80's.

Could you explain what you mean by “green mail”? During the 80’s I still was in elementary school!! ;D ;D ;D

Gio

Gio, "green mail" was primarily an 80s phenomenom.  Raiders like Icahn, etc would buy up a big slug of stock, not unlike they do today, but at the time entrenched management would panic and in order to save their jobs they would buy back the stock.  Of course the raider didn't just want what the current market price was, they could get that more or less by just dumping the stock.  So to get rid of them they would be paid a premium.  It was called green mail because it was essentially blackmail, just given a cutesy Wall Street name.  They would buy the stock, make a lot of noise, but really have no intention of actually following through on any of it, they just wanted a big payday. 
Buy cheap and something good might happen.


giofranchi

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Re: BH - Biglari Holdings
« Reply #341 on: December 06, 2013, 04:42:55 AM »
They would buy the stock, make a lot of noise, but really have no intention of actually following through on any of it, they just wanted a big payday.

Ok, thank you, Kraven!
Then, I sincerely don’t understand how “green mail” could be compared to what Mr. Biglari has already done for BH’s investment in CBRL… ???

Gio
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Kraven

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Re: BH - Biglari Holdings
« Reply #342 on: December 06, 2013, 05:11:13 AM »
They would buy the stock, make a lot of noise, but really have no intention of actually following through on any of it, they just wanted a big payday.

Ok, thank you, Kraven!
Then, I sincerely don’t understand how “green mail” could be compared to what Mr. Biglari has already done for BH’s investment in CBRL… ???

Gio

Sure.  Sorry, I can't answer that.  I am not familiar enough with the situation.
Buy cheap and something good might happen.

rayfinkle

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Re: BH - Biglari Holdings
« Reply #343 on: December 06, 2013, 09:16:51 AM »
I was wondering why Mr. Biglari doesn’t sell CBRL at this point.

gio,

I expect that he doesn't want to be seen as going away having "failed". 

He was desperate for the dividend, even going so far as to quote an "analyst" in support in the presentation (page eight).

I suspect Sardar must've been dragged out of the room kicking and screaming at the inclusion of this (same page):

Quote
“We think a special dividend would likely be supportive of CBRL shares near-term…”


Ugh, especially for someone who is as wedded to long-term value as Sardar is.

Best,
Ragu

For what it's worth, I attended the annual meeting (been a shareholder since early SNS days), and Biglari said a few interesting things relevant to this conversation:
1) To paraphrase, he would not sell CBRL because it would hurt his credibility in future investments. He wants to make money, and he thinks a controlling stake allows him to do this better than investing and being bought out.
2) He said he'd be "very surprised" if BH did not buy an insurance company by EOY 2013. Clearly the clock is ticking and this seems unlikely. However he was adamant that this is core to his strategy.

If there's interest I can dig up my notes and post the whole thing.

wescobrk

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Re: BH - Biglari Holdings
« Reply #344 on: December 06, 2013, 11:07:42 AM »
"For what it's worth, I attended the annual meeting (been a shareholder since early SNS days), and Biglari said a few interesting things relevant to this conversation:
1) To paraphrase, he would not sell CBRL because it would hurt his credibility in future investments. He wants to make money, and he thinks a controlling stake allows him to do this better than investing and being bought out.
2) He said he'd be "very surprised" if BH did not buy an insurance company by EOY 2013. Clearly the clock is ticking and this seems unlikely. However he was adamant that this is core to his strategy.

If there's interest I can dig up my notes and post the whole thing."

Thanks for posting!
I intended to go to the meeting but had to go to a funeral unexpectedly.
I bought quite a bit of unam thinking there would be a buyout this month but so far I've been dead wrong.

giofranchi

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Re: BH - Biglari Holdings
« Reply #345 on: December 07, 2013, 01:06:55 AM »
If there's interest I can dig up my notes and post the whole thing.

Please, do it! That would be very kind of you! ;)

And welcome to the board!! :)

Gio
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wescobrk

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Re: BH - Biglari Holdings
« Reply #346 on: December 07, 2013, 08:19:18 AM »
Bh letter is now posted on the website (biglariholdings.com)
He didn't mention acquisitions at all. Mostly talked about franchising for sns.
Someone must have said something to him about his letter last year with so many i's in it.
This letter only has we, no I.
Nothing about insurance companies or plans for cash.

maxprogram

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Re: BH - Biglari Holdings
« Reply #347 on: December 07, 2013, 11:53:54 AM »
Wow, it's a good thing they've got an office in Monaco now. Otherwise the international expansion might be doomed to fail.
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Parsad

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Re: BH - Biglari Holdings
« Reply #348 on: December 08, 2013, 12:18:25 PM »
Wow, it's a good thing they've got an office in Monaco now. Otherwise the international expansion might be doomed to fail.

My father's cousin lives in Monaco...not a cheap place to live or keep an office...incredibly limited supply.  Her husband owns a firm that designs and builds luxury yachts, sailboats, etc.  For him, setting up his business made logical sense, since so many luxury yachts are registered and docked there.  But it's hard for me to see how Monaco could be the most cost-efficient place to set up an international expansion office.  Ireland, from almost every aspect, would have been far better and cheaper.  Cheers!
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skanjete

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Re: BH - Biglari Holdings
« Reply #349 on: December 09, 2013, 01:19:37 AM »
Wow, it's a good thing they've got an office in Monaco now. Otherwise the international expansion might be doomed to fail.

My father's cousin lives in Monaco...not a cheap place to live or keep an office...incredibly limited supply.  Her husband owns a firm that designs and builds luxury yachts, sailboats, etc.  For him, setting up his business made logical sense, since so many luxury yachts are registered and docked there.  But it's hard for me to see how Monaco could be the most cost-efficient place to set up an international expansion office.  Ireland, from almost every aspect, would have been far better and cheaper.  Cheers!

Monaco isn't cost efficient, but very tax-efficient, especially for rich individuals (for corporations I'm not so sure...).