Parsad Posted December 18, 2009 Share Posted December 18, 2009 Another article on SNS. Cheers! http://stocks.investopedia.com/stock-analysis/2009/Steak-N-Shake-Serves-Up-New-Directions-SNS--BRK.A-WEST-TXRH-MCD-RRGB-FMMH1218.aspx?partner=YahooSA Link to comment Share on other sites More sharing options...
Zorrofan Posted December 18, 2009 Share Posted December 18, 2009 I am shocked at the way the stock price has climbed since the announcement of the 1-for-20 split. Is it simply due to the publicity of the move? cheers Zorro Link to comment Share on other sites More sharing options...
goldfinger Posted December 18, 2009 Share Posted December 18, 2009 I would think it has more to do with the Q4 results. Link to comment Share on other sites More sharing options...
Zorrofan Posted December 18, 2009 Share Posted December 18, 2009 You may be right, but I am thinking the reverse split garnered a lot of publicity for the company. It is not widely followed otherwise. cheers Zorro Link to comment Share on other sites More sharing options...
Guest Bronco Posted December 18, 2009 Share Posted December 18, 2009 Maybe everyone thinks SB is Buffett now. Story is just beginning, not ending. The free cash flow numbers were fantastic at SNS. I give SB credit, but not too much credit. He can't be deemed a great allocator of capital like Buffett...yet. I think the publicity, excitement over 4Q results, reverse split (very Buffett like o/s # of shares), etc...cause the rise in stock. I am more curious to see how this 10% investment in the insurance co. (MI) plays out. Is it just going to be a 10% interest? If you follow Buffett - he bought a ton of little insurance companies in the 1970's (and after he bought National Indemnity). Will SNS use FLOAT? Will it be like Berkshire, with a combination of investments AND wholly owned subsidiaries? Or just a food chain that makes investments? Link to comment Share on other sites More sharing options...
Parsad Posted December 18, 2009 Author Share Posted December 18, 2009 Maybe everyone thinks SB is Buffett now. Story is just beginning, not ending. The free cash flow numbers were fantastic at SNS. I give SB credit, but not too much credit. He can't be deemed a great allocator of capital like Buffett...yet. I think the publicity, excitement over 4Q results, reverse split (very Buffett like o/s # of shares), etc...cause the rise in stock. Probably some of that involved. While the company isn't dirt cheap, it isn't expensive either. I am more curious to see how this 10% investment in the insurance co. (MI) plays out. Is it just going to be a 10% interest? If you follow Buffett - he bought a ton of little insurance companies in the 1970's (and after he bought National Indemnity). Will SNS use FLOAT? I think his intention is over time to be involved directly in the insurance business, so he will use float at some time. Whether Fremont is a potential target or some other insurer, I don't know, but he will probably be in insurance when the time is right. Will it be like Berkshire, with a combination of investments AND wholly owned subsidiaries? Or just a food chain that makes investments? I think he's already gone that way already...take a look at WEST (restaurants, real estate, investment management, passive investments)...and that is soon going to be a subsidiary of SNS, as well as all the businesses within it. People here should remember that the Berkshire textile mill wasn't the bread and butter for Berkshire Hathaway...that would be Blue Chip Stamps...with which Buffett acquired so many other core businesses in the early days. Steak'n Shake is the engine and the holding company, but Biglari will use that currency to buy many other businesses. Cheers! Link to comment Share on other sites More sharing options...
Guest Bronco Posted December 18, 2009 Share Posted December 18, 2009 Parsad...I tend to agree. Overall, I am buying my popcorn and watching the movie unfold. While it is impossible to guess the end, it is fun to speculate a little bit. Probably my last comment on this thread... Happy holidays to all. Link to comment Share on other sites More sharing options...
Mungerville Posted December 19, 2009 Share Posted December 19, 2009 In terms of valuation, does the price reflect the capital allocation skills or do members feel its a fair price even without a better than average capital allocator at the helm? Link to comment Share on other sites More sharing options...
keerthiprasad Posted December 19, 2009 Share Posted December 19, 2009 I think today's price is fair with a good operator at the helm of the restaurants. I don't think Biglari's capital allocation skills are really creating a premium for the stock price. I could see many other restaurant's trading at similar prices. Although I wonder what the current composition of shareholders is compared to a couple years ago. Then again, I don't think Fairfax gets a fair valuation considering the quality of its capital allocators either. Link to comment Share on other sites More sharing options...
Guest Bronco Posted December 22, 2009 Share Posted December 22, 2009 Is there an award for post of the year. Just kidding, but the prior post I had about fmmh seems to have been answered. Link to comment Share on other sites More sharing options...
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