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Biglari Holdings Inc. Message Board

  • smaycs4 smaycs4 Sep 6, 2013 12:00 AM Flag

    Biglari buys $3 million worth after the rights were distributed

    Common Stock, stated value $.50 09/03/2013 P 4,190 A $ 420.5356 14,263 D
    Common Stock, stated value $.50 09/04/2013 P 2,050 A $ 419.3102 16,313 D
    Common Stock, stated value $.50 09/05/2013 P 905 A $ 419.8956 17,218 D

    This is contractually called for....he has to buy shares with 30% of his bonus and he has each year.
    (This is the 3rd year) This year, I think his bonus maxed out at $10 million.

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    • Wonder why he waited until AFTER the rights were issued. BH share price is effectively (after factoring in the value of the rights offering) 10% higher than it was a month ago.

      Could be cash-flow related, I suppose. He's already "stuck" increasing his previous position by 20% due to the right's offering. In light of that it's possible he wants to only buy the absolute minimum number of shares required by his bonus and avoid the additional shares/rights from buying sooner. Other CEOs would have no qualms about buying extra shares on the cheap (like stock options) then turning around and selling them immediately, but I suspect Biglari doesn't feel comfortable selling since he's publicly criticized such behavior before.

      • 1 Reply to highpointt
      • This is the 3rd year he has bought just the amount required.

        It might be he was precluded from buying sooner. Insiders have black out periods where they cant buy or sell.

        Not cash flow, he got a $10 million bonus. buying $3 million worth shouldnt put him in the soup kitchen line.

        His yearly bonus based buying is not a huge postive or a negative. Its neutral.

        He's publicly criticized rubber stamp boards but he seems to tolerate it in his own company !


        I dont expect we will see Biglari sell any shares for a long, long time. He doesnt need the money.

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