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Biglari Holdings Inc. (BH)

NYSE - NYSE Delayed Price. Currency in USD
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167.44-2.60 (-1.53%)
At close: 4:00PM EDT
167.44 -0.01 (-0.01%)
After hours: 04:02PM EDT
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  • G
    GPD
    Is there any value in a fractional share of BH-A? I reportedly have .6 after last split.
  • K
    KRS-Two
    Wonder if SB is back from Monaco yet? Sun, yachts, and a stock that has gone nowhere for 13 years. Ah, life is good.
  • F
    Fit DIY Dad
    I dug into proxy before and recall seeing Biglari's hedge fund getting paid a very large flat fee that's not based on results. It seemed like he was playing lip service to getting a low salary and being pro-shareholders and pretending to be like Buffett, but then he's getting paid indirectly where probably very little benefit to the company is being derived. I also recall Biglari paying his dad or some relative a very nice salary. Anyone have more info on this? That's the main reason I didn't invest around $90
    Neutral
  • S
    Shaggy
    Interesting, no comments after another stellar performance by Biggie himself. He is the king of snake oil, he is offering all 416 company owned stores to franchisees who all they have to do is pay him 10K upfront and then give him 15% of all sales and then assuming there are any profits, split them 50/50. That sounds enticing on the surface, very small upfront costs for a fast food restaurant which is already established. Now comes the rub, if we divide the total revenues by the total number of company stores we get 1.84 million dollars per store. Fifteen percent of that is 276,000 dollars per store. In 2012, the companies best performance under BH, they earned 45,000,000 dollars in profits, divided by 415 stores, that is a profit of 108,433 dollars per store, that was by far their best results, so each franchisee will essentially lose 262,000 dollars a year, assuming they can even come close to replicating the 2012 company results, which seem highly unlikely.
  • D
    Danash
    Sardar has used just under $7M of personal funds to buy back shares since May 20th. Why?
  • D
    Danash
    Incredible how toxic Sardar is to investors. I get that he is greedy and his compensation scheme unjustly enriches him along with the $8.4M/year 'management fee' he is charging to run the The Lion Funds.
    In spite of this, I still can't believe the disconnect between the market share price and intrinsic value. Someone tell me where I'm right and wrong in my line of thinking.
    Sardar owns or controls 60.7% of the A shares (LFII - 35.1%, LF - 17.7%, Biglari Capital Corp - 6.5%, Sardar - 1.4%) and 55.4% of the B shares (LFII - 35.1%, LF - 17.7%, Biglari Capital Corp - 2.4%, Sardar - 0.2%). I think it's safe to assume that those shares are locked up. That means the market value of the economically outstanding shares at most recent prices ($526.64, $103.61) is $138,359,177. BH has raised $306M cash selling CBRL stock since 11/29/2018 and still holds $555M worth. Sardar could easily buy all of the outstanding shares for double the current price. He could not care less about his shareholders, but he's an egomaniac and cares enough about his reputation that he wants to do better than just siphoning off the rest of the remaining value. I still think this is a good value play, but I feel like I'm in a siege.
  • j
    joelxyz58
    as pointed out, the recent share purchases by Mr. Big were misreported by guru focus. here are the proper numbers from the SEC filing. sort of tempting to buy some more shares if the big guy is doing same. any thoughts? it is not like he is buying shares to get voting control, since he already has it. so, what could be his motivation other than catching an appreciation in an undervalued stock?

    Transactions in Shares During the Past Sixty Days

    SARDAR BIGLARI

    Purchase of Class A Common Stock 300 540.00 05/20/2019
    Purchase of Class A Common Stock1 300 565.02 05/21/2019
    Purchase of Class A Common Stock2 550 576.83 05/22/2019
    Purchase of Class A Common Stock3 150 554.87 05/24/2019
  • R
    Richard
    Does one understand the stock allocation plan? If so, please explain it in plain English!
  • B
    Beverly
    hmm. this did not seem to get posted when i tried before. just wanted to point out that, for the first time in a very long time, the A shares are trading at just about 5x the B shares, as one would expect given the economic interest represented by the shares. of course, the A shares have voting rights, and are the shares preferred by Bigliar, even though he already controls the company. but, must be some reason he was buying the A shares at quite a bit more than 5x. it would sure be nice to have more transparency.
  • J
    James
    I was a long time employee and shareholder.I thougnt Biglari was the shareholders messiah at one time.I now realize the original board ,Alan Gilman,Jim Bear and the rest were the real deal for shareholders.I love that special dividend of 10 % a year from those guys.Biglaris stock manipulaton is like a shell game or three card monty you find on the streets of new York.I sold everything and invested with good companys that respect shareholders. Investors should not to be constantly played and intentionally confused.You buy a stock ,the company increases profits and your stock goes up.Not this hard to understand..Only invest in things you understand.I don't trust Biglari and have watched him for a long time,Throw the shareholders a bone and salvage your street cred Mr. Biglari.
  • K
    Kevin
    I'm so glad that I avoided this poison chalice last year. I almost took a sip, then did some research into the self dealing done by the majority shareholder. No thank you.
    What is unfortunate is that I like Steak n Shake, but BH is driving it into the ground. I hope that someone can eventually resurrect the brand when current (mis)management has finished their destructive efforts. Alsmost as bad as Ginny Rometty at IBM, just on a smaller scale, but with more corruption.
    A pity.
  • j
    joelxyz58
    unfortunately, a very astute analysis. what i want to know is how bigliar was able to grow same store sales when he first took over sns, but is so bad at managing it now? i was short back then, figuring that he would mismanage the company. that worked out great. but, now, perhaps bizarrely, given my limited confidence in the man, i am long. that was looking good for a while, but not after this recent bombshell. i am not anywhere close to a steak and shake. how did he manage to ruin the company? was it all due to penny pinching, or is there just too much competition from the likes of five guys, et al., these days?
  • J
    John
    I have been a share holder for years, loved the food thought that if only some real leadership could get a hold of the company it could really take off. I thought Biglari was the guy to do the trick but now it would seem that is not the case. I wish him luck because I try to eat where I invest and S&S has a number of shops in St. Louis, but the stores are not clean and the stores are understaffed. The experience is not limited to St. Louis but also includes stores outside of Saint Louis. Usually there is a counter person to take counter orders, phone in orders, cash out customers and pass out to go orders, apparently that position is no longer staffed even at lunch time. It is of no benefit to sell meals at $4 to compete only to have no one to take the order, service the meal or collect the cash. It is no wonder the stock and company is in decline.
  • B
    Beverly
    interesting story about the sale of the former Steak and Shake property. the company apparently owned it, or, at least i think that is what the article says. BH might be sitting on a lot of real estate. hard to tell how much is leased and how much owned. anyone have a clue? i do see a lot of "Property Plant and Equipment" on the BH balance sheet, no doubt from Steak and Shakes operations. i ask, because i am trying to figure out if there is any value to the Steak and Shake subsidiary in BK 11, where it seems it is heading with the huge debt it is carrying that is due next year.
  • j
    joelxyz58
    SNS real estate ownership from the 2009 10-K.

    Steak n Shake and SNS Investment Company (“SIC”), another subsidiary of the Company, own the land and buildings of 156 properties and 16 parcels of land. Included in the 156 owned properties are 144 company-owned and operating restaurants, 8 improved properties, 2 restau rants that have been leased to franchisees, a division office, and a warehouse facility. At the end of fiscal year 2009, we have $13.7 million in assets held for sale which includes the 8 improved properties, 1 office, and 14 parcels of land which were previously purchased for development.
  • J
    John
    Sardar bought big amount of shares in last two weeks ... joonam sardar jan
  • D
    Danash
    Earnings Friday after the bell. Going to post a huge net income #. SnS loan paid off, Investments are up, and SnS operations are turning around. Biglari is finally on an upward trajectory.
    Bullish
  • D
    Danash
    Any thoughts on the recent price action? B shares up about 40% from when they cratered to $83.
  • A
    AetMed
    The outlook is that bad for Steak n Shake, which in the first quarter racked up an $18.9 million operating loss. That’s on top of a $10.7 million loss for all of 2018.
    The outlook is that bad for Steak n Shake, which in the first quarter racked up an $18.9 million operating loss. That’s on top of a $10.7 million loss for all of 2018.
    www.ibj.com
  • S
    Shaggy
    Beverly, what kind of drugs are you taking, going long after shorting for a long time? What do you believe changed? I understand that the market cap alone is about half of the value of its Cracker Barrel holdings which at some point you would think would have to appreciate closer to that value, but it only goes lower. Biggie is indeed the great destroyer of value.