wescobrk Posted February 18, 2009 Share Posted February 18, 2009 I apologize if anyone has answered this, but, I know some on the board hold a lot more WEST instead of SNS in taxable accounts because they think WEST will essentially outperform SNS over the long term since WEST is a holding company and not just a company. My question is, once SNS is trading above intrinsic value, will he use excess capital to issue dividends to shareholders or will he use SNS as another holding company and buy other companies like WEST? It would be a lot easier to buy other companies with the capital of SNS over WEST. SNS, at this depressed price, is worth about 6x the market cap of WEST. On another note, is anyone going to attend the SNS annual meeting in April? If so, I'm sure this board would be very grateful for notes. Thanks in advance for information on either question. Link to comment Share on other sites More sharing options...
wescobrk Posted February 18, 2009 Author Share Posted February 18, 2009 Sanjeev, Can you comment on this question? You may be the only one that knows the answer since you speak directly to Sardar. Thanks! Link to comment Share on other sites More sharing options...
Parsad Posted February 18, 2009 Share Posted February 18, 2009 Hi Wescobrk, I've never talked to Sardar about that, but I can add that question to the John Linnartz interview and see if he can provide any insights. I certainly don't think it's a far-fetched idea. It works very well for Western Sizzlin, and I don't see why it could not work at Steak'n Shake. The only issue is that I think he would need to make sure he has a fairly close knit controlling shareholder group. One that would trust his judgement like Buffett has at Berkshire, and what Sardar has at Western Sizzlin. Or at least a board of directors with significant stakes that like his efforts and goals. Cheers! Link to comment Share on other sites More sharing options...
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