Michael Rouleau -I see a tremendous sales opportunity here
I get what you are saying but Im presuming that Biglari is going to make sure they dont spend a bunch on hairbrained schemes.
Its more consevative to not take on extra debt. They can always pay out cash later on after more of it flows in.
And the #1 reason not to payout $20, is it does nothing to get rid of Biglari.
"There is significant - and I really mean significant - room for improvement on the merchandising front," he said during the closeout chain's first-quarter earnings call. "And it all starts with our buying organization and ending in the way merchandising is presented to our customers in our stores."
In the seven weeks since he assumed his post, Churches said the company has identified several areas that need repair.
"There is an opportunity to be more thoughtful about how we merchandise at the store level because there are some markets where high-end sheet sets are simply not the right offering for our customers," he cited. "We have the data we need at store level to understand the demographic profiles of our locations. We just need to use it to classify the stores by tiers and customize a portion of merchandising offering accordingly to ensure we remain relevant to our customer."
Ultimately, Churches said he hopes to return Tuesday Morning to its roots, "and what aspects of the shopping experience most resonated with our customers over the years...The value customers could rely on us to provide was of paramount importance to them."
Over recent years, he said, there has been "a significant dilution of the strength of that value proposition, and our customers noticed. Our sales performance and slow inventory turns confirmed this. The good news is, we are in the process of correcting it, and part of the remedy lies in installing new disciplines and accountability into our buying organization so they are focused on great buys and held accountable for delivering great value to our customers."
TUES earned $1.50 per share in the past with poor management and fewer stores.
Now they have both a proven CEO & CFO who have both been there and done that and made shareholders 11 times their money with an arguably harder concept.
And, our chairman has a history of getting companies sold.
Its like the perfect storm for value creation.
TUES is oozing with long term potential simply from years of ineptitude. At both the management and board level.
The NEW CEO has just been in place for a month permanently. Give him some time.
Under Mr. Rouleau's leadership, Michael's Stores grew sales and profits for 10 consecutive years before its sale in 2006.
Its going to take approval of one of the proxy advisors as you say and I just cant see them advocating extra debt.
And I disagree with Biglari that it wouldd add value. It would reduce the value by $20.
60% earnings growth, a 30 multiple isnt bad. .5 PEG ratio.
And I look for even bigger growth in the following 2 years. Say $1.20 and $1.75.
20x $1.75=$35.00. Thats a nice round target and the stocks been there before.
But 10/9 will be D-Day. Are you going to throw in the towel if it doesnt drop to $10 ?
How can you justify the fact that the stock had a 3 million share day, and a week since them and BD hasnt sold more ?
What happened to the "solid cap" at $14 ?
I bought a company trading at a discount to its book value with real, not incentive laden, insider buying at a low price/sales multiple.
Now, none of those exist, the company has been selling shares and its valuation is "pie in the sky".
I found it. It was detailed in CBRLs proxy.
BH had asked for$15 before and this time agreed to drop their nominations if the $20 is paid out.
My guess is they were hoping that CBRL would meet him somewhere in the middle and pay out $12-15.
Straegy wise is makes no sense for CBRL to pay out a $20 dividend if their goal is to get rid of him because he isnt going anywhere. I believe he is going to do just what he said he would which is to "outlast" the rest of the board.
Unless the company gets sold first of course.
It will be interesting to see how many shareholders agree with him and vote for the $20 dividend.
Im gussing 10-15% for a total of 30-35%, which wouldnt win of course.
San Antonio activist investor Sardar Biglari — who has pushed for changes at Cracker Barrel Old Country Store Inc. — extended an olive branch, of sorts, to the Tennessee company this week.
Biglari offered to end a proxy fight by withdrawing his nominees for Cracker Barrel's board if the restaurant and retail chain paid a $20-a-share special dividend.
I didnt see anything in the conference call transcript. And no 13d. What did I miss ?
Its the antithesis of a rights offering.
Im not expecting BH to ever declare a regular dividend. He is in capital raising mode and he is an egomaniac. He thinks he can invest our money better than he can. And he might be right. If I would have sold everything and stocked up on CBRL at under $40,Id be better off right now.
My cash went out of my account the same or next day when I gave instructions. If your cash didnt change, they didnt pay for any shares you sure wont get them.
Also, I had a "placeholder" in my positions page.While the rights were pending. They later dropped off.
what a stupid moniker.
I was around long before 99% of the newbies were.
The hype here is dangerous. they cant seem to keep a CFO and significant earnings are probably years away. And they seem content with letting Pizza Inn legacy stores die on the vine.
My buys were at $1.56,$1.03 and $1.75 1/9/09,3/10/09 and 6/29/10.
Back when it was a value stock.
There are no significant barriers to entry.
Nearly every single Papa Johns, Dominos & Pizza Hut could immediately compete in this "space" with minimal capital expenses. Ditto for subway.
The class action guy isnt going to bother. Your talking about a $150.
He would only stand to make 35-40%. Not worth fooling with.
There has to be a pro-ration factor and of course its not the lottery.
I think its something more innocent like say the brokerage in total had say 1500 shares in aggregate. And lets use 12%. If they went thru every customer and tried to give them 12%, they might have rounded up a few times and when they get to the end, they are 1 share short and you just happened to be on the short end of the stick. Its not fair but its not a conspiracy and I really doubt the company or the transfer agent had the task of allocating between each individual brokerage firm.
I mean, when you combine both my accounts, 8+4=12, my proration factor was 8.333%. But I dont see it as a conspiracy, I just assume that everyone with less than 7-8 basic rights was not awarded any oversubscription shares.
And my 2nd account had just 4 rights.
When you say you "fully subscribed and fully oversubscribed" and had enough cash to cover both, what exactly do you mean ?
I fully subscribed & oversubscribed to the maximum which means Fidelity took enough cash out of my account & sent it in as if I were to get 100% oversubscription. If you only sent in less, maybe it went off how much extra you asked & paid for ?
Also, the proxy or prospectus lists a phone #. If I were you, Id call because you're going to need an exact proation figure if you're going to get your broker to make it right. They might not call you back but Id say a better chance than an email response.
I cant remember how it went with the WEST offering but it just seems like they should have to disclose the proration factor.
Yeah, from all indications, you should have gotten 6 shares... unless you hadnt owned your entire 250 shares from the get-go. (Like Sardars most recent open market buy was ex-rights so he didnt get rights on those shares)
And assuming you didnt trade the rights. I think I read or someone said that rights bought in the open market were not entitled to oversubscribe.
I wonder if the brokers aggregate for each client and then back office people divide it manually ?
At the very least, Id get an explanation or $155 worth of free trades if they messed up.
I didnt read much into the small % variances of the insiders,just assumed it was rounding differences.
I didnt do the lion funds manually either. Just Sardars individually.
I thought for sure that BD would have been some of the volume.
Or possibly a new 13d filer. But it was none.
13G filers dont have to file on a timely basis so we wont know for awhile.
I did notice that TUES proxy was filing on 9/25. And what I presume was a paper annual letter. Cant read it on edgar.
And I havent tried their website.
Sep 20, 2013 14.60 15.25 14.59 14.98 3,109,900 14.98
Biglaris stake was worth less back then, and it would be worth it to get rid of the thorn in their side.
I knew they would reject it but thought they would offer up $5 or $10 instead. And it was nice of them to put it on the proxy rather than doing as they have in the past, just rack up more legal expenses.