investor99

How about this. Give us a basic low flat tax or national sales tax or something and do away with the IRS, etc. With the money the "rich" or small and large businesses save from these high tax rates they can hire millions of workers and our unemployment rate would decrease. I for one would hire several additional workers if I was not so heavily taxed. That makes a lot more sense then to tax the employers have the gov't keep 90% of it as administration cost then turn around and give the last 10% to the people in the form of some entitlement program so that the person doesn't have to work. This is not brain surgery, that is very very inefficient. Our country has become a nation of beggars who think they are entitled to some type of gov't funds. The truth is not one able bodied person should be getting money from the gov't in ANY form including medicare, social security, etc. Our country is one of the few countries in the world where all people have real opportunity and the very fact that someone lives here should be enough. Put all of that aside and the real truth is I respect your opinion but I disagree with it 100%. It is my right to disagree with it and it is also my right to not be forced to live by your opinion. This country was founded by people who also were tired of having someone elses opinions and ideas of how they should live be forced upon them. That is why this country was founded as a republic, not a democracy. If there was a "New World" today I would be the first to migrate there to get away from the tyrany that this large government has become.

Someone explain this to me. BH now owns two hedge funds (The Lion Fund and Mustang) and one is buying BH shares and the other is selling shares. What does all this mean?

Bigliar buys more today and yesterday. Where is he getting the money? Must be levering up. This guy will do anything to get his way. Let's see if Gabelli buys more in the next few days or weeks. Let's also hope that Gabelli is as relentless as Bigliar.

I just read the statement. Great News!! Biglari is toast. There is no way this thing is going to pass now. This whole thing just didn't make sense from the beginning. The irony! Bigliar talks a good talk then does exactly what he says not to do. Then his shareholders turn against him. All of this after he took the poison pill out after he got control of SNS. Amazing. This whole thing is a study in human psychology. What would cause a person to pull a stunt like this. If you think about it though, he may have seen this as a win-win situation. If the comp package went through.. obviously a win for Biglari. If it doesn't go through, he has driven the price down in the mean time and bought back shares at a lower price, the price might rebound and he's better off for it.. also a win. The clencher is the stock price. The price was trading at a high level based on his previous shareholder friendly talk and hope for future greatness and that has now been quashed. It is doubtful that the price will ever trade at such a multiple with Biglari at the helm. However, Gabelli has a longer and maybe a better track record than Bigliar (I'm not sure) and has the cash to be the majority shareholder if that is what he wants. He could make this his investment vehicle if he desires. Unbelievable.

On a side note, the current share price of BH values the shares of AAP at 32.24 after the exchange offer of 0.1179 shares of BH for one share of AAP. AAP closed today at 49.55. What a joke!

I agree with your sentiment completely. What do you think the chance is that Sardar comes out and says 'hey guys I screwed up, now that I look at it more closely the compensation package is asking too much here is what I should have done....etc. etc.' I think this type of response would put him back on top in some of the shareholders minds, but I'm not sure it will happen.

I am a little confused. Did Biglari sell his shares in BH before he announced his compensation package? I can't tell from the language in the report, which is probably the way he wanted it. Thanks

Now that would be interesting. Dash trying to go after SNS. All he would have to do is say that he would not ask for such a ridiculous incentive and he'd get the votes. The last press release from Biglari sounded like he was not happy with Dash so maybe they are not great friends. I can understand why. I wouldn't be surprised if Biglari stabbed Dash in the back as it seems to be in his nature. Are you listening Dash? An easy take over target!

Just as I suspected, after seeing what Biglari did to SNS shareholders there was no way that they were going to vote for Dash. Biglari should take a long hard look at this situation and learn something from this. There is also no way that any future potential acquisitions are going to vote in favor of Biglari either. He has made his job a thousand times harder from this irrational, unethical behavior. One of the things that makes Buffett so successful is that he is well trusted and people want to do business with him. Well, not Biglari!

I'm trying to come up with a reason for this irrational behavior. Two possible reasons for this recent irrationality are he's pulling a "Brewster's Millions" or a has a "Beautiful Mind." But there is certainly something rotten going on, in my opinion.

Is this a joke? http://sec.gov/Archives/edgar/data/93859/000092189510000806/s4a107428_05172010.htm Who is going to trade an AAP share valued at $45.75 for 0.1179 shares of BH valued at $36.16? I'm really starting to think this guy needs to have his head examined. He's looking like a total amateur. I would love to see the results of this offer as well as the result of the shareholder vote for his salary increase. This is getting ridiculous!

I don't understand what merging BH with The Lion Fund does for BH. I and really don't understand why doing so should give Biglari the huge incentive bonus that he is asking for. This only severely hurts BH shareholders. It does not help the shareholders out in ANY way that I can see. Biglari will still be allocating the capital of the Lion Fund the same as he was before and this somehow means to Sardar that he is entitled to a huge bonus. What has he done differently. He is obviously trying to offset a loss in income that he won't get from the Lion Fund anymore. But the new bonus will more than offset this especially in the future, probably by hundreds of times more. I am very disappointed and feel that this may permanently damage BH and Biglari and their reputations. I think that the best thing to do at this point is for BH to take back the offer and let Sardar continue to manage the Lion Fund. I have no problem with this as a BH shareholder. It just doesn't make sense any other way. Makes no sense at all for the shareholders of BH. None at all. I would like to hear Gabelli's opinion on the matter. I guess another option is to have a much simpler and smaller incentive. Like 10% over a 10% increase in book value or something like that. It would make much more sense. But 25% over a 5% increase in BV? No sense at all.

I think as a part of the agreement Biglari needs to be evaluated by a psychiatrist for possible Delusional disorder before proceeding with the incentive pay. Sorry for all the posts but I just got back into town and read the boards and just can't Imagine this!

How about firepower for Fremont and Michigan's state rep's to pass this law. There is no better argument for Fremont's position than this. Absolutely, ABSOLUTELY UNBELIEVABLE. I can't get over it. UNBELIEVABLE!!

I just don't think Sardar is that stupid. He knows this will make shareholder's very angry and cause a huge sell off. There is a reason for all of this. He must also know that there is no way the shareholder's are going to go for this. He is doing this for a reason. Also, did the board really approve this already? I can't believe it. Carl Icahn will be all over this. He has enough to buy the company outright. And remember, Sardar did get rid of the poison pill that the old SNS board put in place so he know he has to keep shareholders happy or an Icahn will step in and give Sardar a taste of his own medicine. They would love to have SNS in its current condition. I'm telling you, there has to be something more to this. Shenanigans I tell you. Just my opinion.