Author Topic: BH - Biglari Holdings  (Read 1312210 times)

Morgan

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Re: BH - Biglari Holdings
« Reply #440 on: March 03, 2014, 12:26:28 PM »
 
Why would biglari waste this time and energy on something that won't move the needle.
That's exactly what I'm wondering. Surely this will take up a decent amount of his time. What are the repuational costs for him if he fails? And the upside if he is succesful... right back to how will this move the needle?




A_Hamilton

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Re: BH - Biglari Holdings
« Reply #441 on: March 03, 2014, 01:15:10 PM »
Why would biglari waste this time and energy on something that won't move the needle.
That's exactly what I'm wondering. Surely this will take up a decent amount of his time. What are the repuational costs for him if he fails? And the upside if he is succesful... right back to how will this move the needle?

Maybe take Maxim name and go into hard core porn market? Not kidding.

peridotcapital

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Re: BH - Biglari Holdings
« Reply #442 on: March 03, 2014, 02:57:19 PM »
Why would biglari waste this time and energy on something that won't move the needle.
That's exactly what I'm wondering. Surely this will take up a decent amount of his time. What are the repuational costs for him if he fails? And the upside if he is succesful... right back to how will this move the needle?
Since he is keeping the management team I don't think it will take too much of his time. I'd bet he's definitely looking beyond print, and in that sense it could move the needle over time. He clearly likes good brand names and he got a pretty good one for ~$10 million. It could be a steal if he can get the magazine into the black by $5M/year and then leverage the brand and infrastructure into other areas. I would imagine the product licensing opportunities alone cold move the needle 5 years from now. I don't think it's a slam dunk but for $10M there are multiple levers to pull for it to wind up being a real bargain a few years down the road. I like the risk-reward at the bargain price he got it for even if at first glance it appears odd.

Morgan

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Re: BH - Biglari Holdings
« Reply #443 on: March 03, 2014, 07:53:47 PM »
Why would biglari waste this time and energy on something that won't move the needle.
That's exactly what I'm wondering. Surely this will take up a decent amount of his time. What are the repuational costs for him if he fails? And the upside if he is succesful... right back to how will this move the needle?
Since he is keeping the management team I don't think it will take too much of his time. I'd bet he's definitely looking beyond print, and in that sense it could move the needle over time. He clearly likes good brand names and he got a pretty good one for ~$10 million. It could be a steal if he can get the magazine into the black by $5M/year and then leverage the brand and infrastructure into other areas. I would imagine the product licensing opportunities alone cold move the needle 5 years from now. I don't think it's a slam dunk but for $10M there are multiple levers to pull for it to wind up being a real bargain a few years down the road. I like the risk-reward at the bargain price he got it for even if at first glance it appears odd.

If he actually got it for ~$10m then yes, that was sounds like quite a good buy. Especially if he can make profitable soonish then leverage the brand some how. I suppose he must have some sort of plan for it. Fun to follow to say the least.  :)

giofranchi

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Re: BH - Biglari Holdings
« Reply #444 on: March 03, 2014, 10:52:57 PM »
It could be a steal if he can get the magazine into the black by $5M/year and then leverage the brand and infrastructure into other areas.

It is precisely those “other areas” I am trying to figure out… what are they? A_Hamilton suggested hard core porn… ;) well, besides that one, which are the plausible “other areas”?

Gio
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ragu

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Re: BH - Biglari Holdings
« Reply #445 on: March 04, 2014, 12:27:50 AM »
ragu, any comment?

gio,

Can't say I saw that one coming! It looks to me like BH weren't involved in the initial bidding.

After the collapse of the Darden Jr. "bid", there was a potential second bid for around $20 million:http://nypost.com/2013/12/20/darden-not-alpha-enough-to-nail-maxim-mag/

I can't find anything on why that might have not gone through. It'll be interesting to hear from Sardar at the AM as to how this came about.

Currently unprofitable business and desperate sellers might have been enough for the purchase price to have been a bargain. I can't see this in the BH umbrella for the long-term though and I suspect a sale might happen a few years down the road.

As for plans, there's potentially this: http://variety.com/2013/tv/news/maxim-magazine-plans-cable-tv-network-report-1200609750/

Best,
Ragu

TheValueDude

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Re: BH - Biglari Holdings
« Reply #446 on: March 19, 2014, 02:56:30 PM »

MYDemaray

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Re: BH - Biglari Holdings
« Reply #447 on: March 19, 2014, 05:37:18 PM »
Wait...truckers?...MAXIM?...it all makes sense now!

Nnejad

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Re: BH - Biglari Holdings
« Reply #448 on: March 19, 2014, 05:45:15 PM »
Plus, look at the products CCA sells.
http://www.ccaindustries.com/

It's all coming together.

ragu

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Re: BH - Biglari Holdings
« Reply #449 on: March 19, 2014, 08:05:18 PM »
http://www.prnewswire.com/news-releases/biglari-holdings-inc-acquires-first-guard-insurance-company-251047701.html

Quote
By writing business directly rather than through agents and brokers, First Guard enjoys one of the lowest cost structures in the insurance industry.

The Geico of truckers insurance.

Best,
Ragu