JD, I've followed BH for years. i bought into the SB story years ago and sounded much like you do today. At the time, there were people warning me that he's an ego maniac and that his actions will not match the words of his annual letters.
I've found in time, that they were correct. I was wrong to buy into the story SB had crafted to describe himself. I've sold my BH and am now following the story to see how it plays out.
I've read Smacy for years- he's one of the few yahoo id's that I recognize. I always appreciate hearing his perspective. He's thoughtful and reasoned in his opinion. Most of the these boards are taken up by blowhards who like to flame throw insults, probably out of boredom in their life. that's pretty much how i see you.
Are you following the recent changes at COSN? Dormant for a long time and Steel is transforming it now. Still early in the story.
It interesting- it's now a profitable operating company with NOL's, cash and stock in NATH.
It's cheap and worth a look if you have time.
If I still owned shares I would have done the same as you.
I'm eager to see the voting results. I would bet that SB will got the Biglari shares because he'll need to in order to win the proxy.
I agree with you. I've sold all my shares because I want no part of ownership in a company where the CEO takes such advantage of his power. He's outrageous and his greed is equally surprising.
I hope Gabelli takes him to task- he's the only person powerful enough to do so. Groveland is correct in their analysis, however, they lack the credibility and experience to take over.
I saw that SB is cashing out of his CBRL through forwards. I wonder if he's going to put those proceeds into Lion Funds in order to further entrench himself and position for outsized compensation.
SB's presentation confirms, imo, his low level of ethics and fair play. He seems to be squandering a great situation due to his greed and lack of character.
According to the press release yesterday, COSN owns 97% of API. They can now buy the remaining 3% at the same terms.
Also, they are selling their NATH.
The company is now going to be an operating company generating about $7 million in earnings. I believe EBITDA is in the range of $15 million.
It's now a profitable operating company with a lot of cash.
Seems very cheap here.
It seems like Steel and COSN played this one well by gaining commitments on the shares held by the other funds. I can't imagine anyone wanting to hold a position in API with COSN being in such a control position.
Do you have an opinion on the value of COSN assuming this goes through?
Based on my rough numbers, I put it between $3 and $4 a share.
COSN will get over $11 million cash just from the NATH special dividend announced yesterday. Seems like a lot of value here with our without the API acquisition.
I sold all my BH Friday. His antics continue to concern me. The latest is that he had BH sell stock at 250. Took those proceeds and put them in the Lion Fund. Then he has the Lion Fund use that money to buy shares at ~380. That doesn't seem to make sense to me if your primary focus is BH rather than SB or TLF. The aggressive buying also appears to be trying to drive the stock price up.
Also, he buys two large positions in companies controlled by a fund who is challenging his antics at BH- seemingly using BH funds again primarily for his benefit.
The stock is cheap so there may be more money to be made. But add these two issues on top of the other corporate governance concerns and I'm moving on.