Author Topic: BH - Biglari Holdings  (Read 1312208 times)

gfp

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Re: BH - Biglari Holdings
« Reply #2830 on: May 24, 2019, 04:21:03 PM »
https://www.sec.gov/Archives/edgar/data/1334426/000092189519001627/xslF345X03/form407428007_05222019.xml

What a train wreck!

"At a past annual meeting I said, quit bidding our share price up. And everyone laughed.” Then he leaned into the microphone, looked out at shareholders, who lost 58% of the value of their stock in 2018, and said, with delight: “Who’s laughing now?”"
Share price now under $100.

Bigs must be thrilled.


given2invest

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Re: BH - Biglari Holdings
« Reply #2831 on: May 24, 2019, 05:08:11 PM »
If I controlled a closed end company that traded at a 50% discount to NAV or whatever I would buy stock personally, too.  But you're just stealing from yourself at some point.

Txvestor

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Re: BH - Biglari Holdings
« Reply #2832 on: May 24, 2019, 05:16:10 PM »
If I controlled a closed end company that traded at a 50% discount to NAV or whatever I would buy stock personally, too.  But you're just stealing from yourself at some point.

If he was taking $20M compensation for shifty performance and buying up beaten stock for a low price, and recycling each year, eventually he will own the company outright. He has many options to transfer the economic interests to himself. He can pay himself, make money on the hedge fund, take generous corporate perks and have lavish idiot pet projects etc. bottom line he don’t consider shareholders partners, he considers them his chumps.

given2invest

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Re: BH - Biglari Holdings
« Reply #2833 on: May 24, 2019, 05:38:26 PM »
If I controlled a closed end company that traded at a 50% discount to NAV or whatever I would buy stock personally, too.  But you're just stealing from yourself at some point.

If he was taking $20M compensation for shifty performance and buying up beaten stock for a low price, and recycling each year, eventually he will own the company outright. He has many options to transfer the economic interests to himself. He can pay himself, make money on the hedge fund, take generous corporate perks and have lavish idiot pet projects etc. bottom line he don’t consider shareholders partners, he considers them his chumps.

anyone who thinks otherwise is crazy.   but i don't think anyone thinks otherwise.  i think they think at some price it's worth the risk because he will try to get the stock back to NAV for reputation.  good luck with that ever happening.

Txvestor

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Re: BH - Biglari Holdings
« Reply #2834 on: May 24, 2019, 05:45:20 PM »
If I controlled a closed end company that traded at a 50% discount to NAV or whatever I would buy stock personally, too.  But you're just stealing from yourself at some point.

If he was taking $20M compensation for shifty performance and buying up beaten stock for a low price, and recycling each year, eventually he will own the company outright. He has many options to transfer the economic interests to himself. He can pay himself, make money on the hedge fund, take generous corporate perks and have lavish idiot pet projects etc. bottom line he don’t consider shareholders partners, he considers them his chumps.

anyone who thinks otherwise is crazy.   but i don't think anyone thinks otherwise.  i think they think at some price it's worth the risk because he will try to get the stock back to NAV for reputation.  good luck with that ever happening.

Sometime last year NBL asked a question on this forum, is there any price at which you will buy BH common stock. I thought about it and said to myself, well maybe at under $100, one can think about it. Having seen the shenenigans, the freefall at Steak-n-shake, ongoing idiot pet projects and the number of levers of transfer of economic interest he has. I can only think anyone betting in BH is betting on divine intervention for potential salvage.

DTEJD1997

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Re: BH - Biglari Holdings
« Reply #2835 on: May 24, 2019, 08:38:02 PM »
Hey all:

I spoke with some people who ate at/knew people working at one of the Steak & Shakes that was closed.

Evidently, it was simply shut down at the end of a shift and everybody was let go.  No advance warning, no nothing.  I don't know if this was in compliance with labor laws? 

Seems like a pretty bad thing to do to the workers. 

IF that is true, it is going to make it even harder to re-open at some future point.  Help is hard to find.  Good help is incredibly difficult to find.  With antics like this, who would work at S&S?  There are PLENTY of places to work at these days.

NBL0303

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Re: BH - Biglari Holdings
« Reply #2836 on: May 25, 2019, 06:45:41 AM »

IF that is true, it is going to make it even harder to re-open at some future point.

These stores are never re-opening. Everyone knows that. Even Sardar said they're only going to have 60-80 of them at year-end. I literally do not think that anyone who follows this thinks these stores have any shot at re-opening.

gfp

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Re: BH - Biglari Holdings
« Reply #2837 on: May 25, 2019, 09:47:11 AM »
Apart from the term loan, are the majority of closed restaurants' underlying real estate owned free and clear?  NBL, do you remember if the scuttled high yield bond issue that SnS considered last year was also non-recourse to Holdings?


IF that is true, it is going to make it even harder to re-open at some future point.

These stores are never re-opening. Everyone knows that. Even Sardar said they're only going to have 60-80 of them at year-end. I literally do not think that anyone who follows this thinks these stores have any shot at re-opening.

Foreign Tuffett

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Re: BH - Biglari Holdings
« Reply #2838 on: June 04, 2019, 07:42:01 AM »

DTEJD1997

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Re: BH - Biglari Holdings
« Reply #2839 on: June 04, 2019, 10:32:26 AM »
Hey all:

Drove by the SNS that I used to eat at yesterday.

Almost all the signage is down, drive through menus & promotional signs in windows are gone.  Only signage is on/physically built into the building and the sign at the street.

Looks like this is long term mothballing.  Others who says most closed locations will never re-open are probably right.