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Biglari Holdings Inc. Message Board

  • crackorbarrel crackorbarrel Dec 4, 2012 9:04 PM Flag

    What should Sardar Biglari do next?

    Head of a "diversified holding company" and wants to be like Berkshire Hathaway. However 99% of his available capital is in cyclical chain restaurants.
    Should he continue to hold on and be an activist shareholder (pain is the #$%$ at Cracker Barrel? He is young enough to hold on for many years, but his ambitions may be a hindrance.
    Should he take some profit and invest in another opportunity? (or would that look like he lost and hurt the ego?)
    Should he unload CBRL shares and watch the stock price plummet?
    What should Sardar Biglari do next?

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    • His options are limited. Cant really sell in the open market and Im not sure he would want to.

      Best case scenario is a 3rd party buyout of CBRL at a premium which is possible if recent reports are to be believed.

      He could also sell all or a portion of his position to a fund that wants in without running the price up. But clearly a buyout would be his best exit.

      Thats what happened with a number of his prior investments. The insurance company and friendlys.

      A 3rd proxy fight after 2 landslide losses is highly unlikely.

      BH shareholders have not done well for the last 2 years but in the 11 page shareholder letter, which came out saturday,sardar says intrinsic value has increased.

    • Go after McDonald's

      Sentiment: Strong Sell

    • Thats up to him...All's I know is he has some $200 mil+ tied up, even though he is getting a good divy it's not close to covering the interest rate on that $$....He will not get control of CBRL, they will not give up and they should not, the golden goose except for a price..That will be in ballpark of $85-95/sh for the rest. CBRL was fully priced w/o breaking up the business plan in place at CBRL at @ $68 or so...Changing that plan will get $$ out but also reduce their forward opperations including the divy....Just because SB buys the co, it does not increase in value except in his head.....You take it out of one end ($$) and it disappears in the other, not magic....There are always companies out there to invest in...Right now there are many, many other restaurant chains that could be had for the $200+ mil he has tied up....SB is not an operations/build the business guy....he is a vulture/raider...reminds me of Asher Edelman and Boesky.

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