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Biglari Holdings Inc. Message Board

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  • belco_mc belco_mc Jan 29, 2013 11:01 AM Flag

    $310.5 Million in CBRL and UNAM stock

    You are using the yahoo numbers?
    They are not accurate for BH
    Do a little DD and you can figure out why (smirk)

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    • The post is factual. 20% of Cracker Barrel, 9.5% of UNAM, the number of company owned locations is 419, and the number of franchisees is 171. I guess the real estate along interstates for 419 unit is worthless based on Wall Streets BH price today ? LOL As for the cash per share, enlighten us, sparky? It doesn't even have to be a huge number to make BH worth a look.

      • 3 Replies to boiler_room_bermuda
      • Do your own DD sparky.
        Im long BH so i agree with your position. But your numbers are off. I will give you a hint. The fact that the lion fund owns BH shares impacts the accounting, and thus, the reported numbers from yahoo. Good luck sport.

      • Most of it is borrowed money.........I can own BRK-A with borrowed money.

      • Whoa, listen-up Guber - step back from your mouse, you're going to hurt yourself. Yahoo Finance combined cash and investments into the cash per share calculation. Which then distorted the Enterprise Value (2nd number in Key Stats).
        Using some round numbers (millions) from the December quarter just announced six days ago and available either on the or Biglari Holdings website:
        Market cap is about $525 - Remove cash of $30 and add back LT Debt and Lease Obligations of $230 and you get an Enterprise Value of $725. Now you can do your wizardry on that number. Take the value of the investment holdings (CBRL, UNAM, BRK-a) at around $325 and that values restaurant operations at $400, not free. From 2008-2010 (3 years) BH made about $120 cash flow from restaurant operations, or about $40 per year, which values operations currently at about 10x cash flow. Now the big question - what's the value of deleveraging the balance sheet to a franchise model and putting the new cash in Sadar's hands. What's the Future Value of his investment prowress? For the answer you have to look at his two insurance purchases, Friendlys, Applebees, etc.

        Sentiment: Hold

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