Do your own due diligence. The headlines are about activist positions, but the real profit is in IEP's wholly owned businesses.
CBRL implemented his ideas (other than the employee bathroom square footages), , updated the menu somewhat and focused on improvements. Once the stock price appreciated they were ready to fight the brash, oily, irritating agitator. That presentation is well laid out and very effective if you read between the lines.
Biglari needs a third party "partner" to come in for the double-team.
Similar to his friendly discussion with Tim Cook, he offers solid, experienced, valuable advice to business leaders about increasing shareholder value. Some CEO's listen and some get replaced.
Only if you recently purchased IEP stock. Otherwise, as I did, we have seen the success "for shareholders."
I hope they spell his name correclty on the plaque.
He can't sell.
He can't buy more.
He can't get on the board.
He will fail with his letter asking for a special dividend.
He is considered an "oily pest" by several in CBRL top management.
He needs some creative ideas, including having a friendly investor take another large position and join forces.
The capital gain value has is not fully reflected in BH stock, so he is stuck.
Quite the reversal. So much for his long term horizon B.S. This threat will not help his efforts, but will firm up CBRL's position against his board seat. CBRL does NOT consider him a "partner" - just an "oily pest."
Agree with smaycs4. I expect CBRL management to resist any ideas and proposals put forth by Biglari. He lacks the skill of of other activist investors such as Pelz, Pickens, Black and Ichan (IEP). He also lacks the "friendly" openess of his frienldy acquirer and idol, Buffet.
Hopefully he will mature and gain experience.
No, I know someone who has IEP and 3 other stocks (including one ETF) in their IRA. She has been very pleased with the increase in account value as IEP continues to prosper.
Highpointt - Good recap. Thanks for a rationale response since apparently Jsteveco730 is an #$%$
The wholly owned "subs" of IEP are often overlooked since Icahn's public disclosures over stock acquisitions always receive the headlines. However under the surface, the subs provide solid, diversified growth and profit.
The jewels of IEP's portfolio are not limited to the likes of Apple and Dell .
The Icahn portfolio contains Transocean (RIG) , a company that has transformed itself over the past two years. It has divested noncore assets, improved operational efficiency, and focused on ultra-deepwater markets. However, what really excites me about Transocean is the company's predicted growth, valuation in relation to book value, and dividend payments -- currently some of the best in sector.
The other jewel in Icahn's portfolio is American Railcar Industries (ARII). The company not only manufactures railcars and tanker cars to sell, but it also manufactures railcars for lease -- a lucrative business. Railcar leases are usually signed for five to seven years, which locks in cash flow. Moreover, these leases are highly cash-generative, and during the second quarter, the company's leased railcars generated a 10% annualized return on total assets.
While Transocean and American Railcar present attractive opportunities, Icahn's Icahn Enterprises (IEP) itself could also be a good bet. Akin to a mini Berkshire Hathaway , Icahn Enterprises has a multitude of shareholdings. As a partnership -- unlike Berkshire -- Icahn Enterprises distributes a payout to unit holders, which currently stands at 6.4%.