A good chunk of their assets is illiquid real estate.
And of course whatever employees that are left are in no hurry to fire themselves.
Im pretty sure this company is worth more than the stock price in cash as they have sold off much of their preferred holdings.
And they don't put out much so it takes more work than most people are willing to do to see what the value here is. (Including me)
There has been some board changes too. So who knows if they will distribute the proceeds or squander it away.
I haven't been paying attention and still own some shares bought at lower prices.
I did sell some on 4/25/13 at $12.49. (Clearly I should have sold all)
to price the offering as low as possible so they can cash in with their warrants & overallotments.
So really, their interests at least in the near term are to keep the stock down and then price the offering where they can make the most money.
I would hope they can sell it out at $2.25 but they stand to make a lot more if they price it at $1.85-2.00.
Now, AFTER the offering our interests will be the same and the stock should go up.
So the question is why pay $2.25-2.40 now when you might be able to buy it in the secondary at $1.85-2.00 ?
Hopefully Ran told them no lower than $2 or something like that.
Ideally, they want to place the shares with a lot of firms who hopefully will increase their positions in the open market after the offering which will help. And maybe push us towards $3 within 6 months or so.
Im not willing to sell at current prices and not willing to buy more. Seems like most are in the same boat or we would have much higher volume.
I cant tell if they owned shares prior to 4/7 or they only had to report back 60 days.
And I didn't do the math to see.
The Shares owned by the Fund were purchased with working capital (which may, at any given time, include margin loans made by brokerage firms in the ordinary course of business) in open market purchases, except as otherwise noted, as set forth in Schedule A, which is incorporated by reference herein. The aggregate purchase price of the 4,581,953 Shares beneficially owned by the Fund is approximately $16,069,700, excluding brokerage commissions.
Did they have a rights offering at $2.00 followed by a secondary at $1.75 ? Never seen anything like this before. or did one replace the other ?
How many in the rights offering were sold ?
It sure seemed they were in a hurry to pay up. I guess they figure they can support the stock which, maybe they can do if they could possibly take a much bigger position.
Im pleased we are back above $3 but the deal still smells to me. It looks very much like a sweetheart deal for BD allowing them to dump their stock at higher prices and then buyback at $3 with a healthy dividend to boot.
We might be at $4.25-4.50 right now had they not done that.
On June 5, 2014, Books-A-Million, Inc. (the “Company”) entered into an agreement with Harsha Gowda to repurchase 655,596 shares of common stock of the Company held by BlueShore Global Equity Fund, L.P., a fund controlled by Mr. Gowda, at a price of $2.15 per share, which price represents a $0.03 discount
Shares Short (as of May 15, 2014)3: 6.46M
Short Ratio (as of May 15, 2014)3: 14.20
Short % of Float (as of May 15, 2014)3: 19.10%
Shares Short (prior month)3: 6.81M
Not that I know what to do with that info but you have to think that some of them are feeling some pain and some have covered. Some, like fred, had no choice in the matter.
Never heard of them prior to todays filing.
I wonder if they are as mad about the "inside" deal with Becker Drapkin as I am ?
I don't blame BD for doing it. I blame the board for allowing it to happen if not participating in trading on inside information. (When BD sold)
Just another reason I don't short.
But, it sounds like they did you a favor. Supposedly, if they run out of shares to borrow they can force you to cover. I thought they would give you a few days though or something.
It was a lighthearted jab in good fun.
But, look at the chart and tell me where resistance is.
I agree this quarter isn't going to look good but Im confident that they will turn this chain around.
X-mas should be when the results just start to show. I expect them to continue in the new year and going forward.
Form 4 BIGLARI HOLDINGS INC. For: Jun 02 Filed by: JOHNSON WILLIAM
06/02/2014 P 72 A $ 424.92 300
And before some moron cracks that's its ONLY $30K, send me $30k or shut up.