giofranchi Posted January 23, 2015 Share Posted January 23, 2015 Groveland filed a letter this morning. http://www.marketwatch.com/story/groveland-calls-for-improved-corporate-governance-at-biglari-holdings-2015-01-22 In general I like Groveland's proposals. Ahahahah!!!!... Hilarious! Truly funny! Except alas that this doesn’t seem to be a joke… ;) Swenson has written a letter the content of which is simply unacceptable for Biglari. Either Swenson loses, or Biglari is gone. If Biglari is gone, he will simply find another vehicle to shrewdly manage and to make grow. BH shareholders instead will remain poor. Of course, if Biglari is gone, I am gone too. Cheers, Gio Link to comment Share on other sites More sharing options...
Jurgis Posted January 23, 2015 Share Posted January 23, 2015 I will vote my shares for Groveland. How many shares do you own? I will not answer this question. :) Link to comment Share on other sites More sharing options...
gfp Posted January 23, 2015 Share Posted January 23, 2015 BH has updated its 10/K to include most of the proxy information today -> http://www.sec.gov/Archives/edgar/data/93859/000092189515000106/form10ka107428007_09242014.htm Link to comment Share on other sites More sharing options...
OracleofCarolina Posted January 23, 2015 Share Posted January 23, 2015 first time I noticed this being disclosed Ken Biglari, Sardar Biglari’s father, performs consulting services for Steak n Shake in the areas of cost management, outdoor advertising, and international franchise development. In addition, Shawn Biglari, Sardar Biglari’s brother, is employed as a Director, Business Development for Steak n Shake. Although each of Ken Biglari and Shawn Biglari received less than $120,000 in compensation from the Company during fiscal 2014, the Company has opted to provide the foregoing disclosure. Link to comment Share on other sites More sharing options...
frugalchief Posted January 23, 2015 Share Posted January 23, 2015 first time I noticed this being disclosed Ken Biglari, Sardar Biglari’s father, performs consulting services for Steak n Shake in the areas of cost management, outdoor advertising, and international franchise development. In addition, Shawn Biglari, Sardar Biglari’s brother, is employed as a Director, Business Development for Steak n Shake. Although each of Ken Biglari and Shawn Biglari received less than $120,000 in compensation from the Company during fiscal 2014, the Company has opted to provide the foregoing disclosure. Yup, think it's the first. Reading through it I really felt this was their "let's disclose everything" b/c of Groveland. Seeing TLF performance fee was interesting and near the top where they disclose Changes to Compensation Program and Response to Shareholder Engagement. T'was enlightening.... Link to comment Share on other sites More sharing options...
ragu Posted January 28, 2015 Share Posted January 28, 2015 Groveland filed a letter this morning. Well, by addressing their letter to the Board, they've saved themselves the embarrassment of addressing one to a person that is no longer employed by BH (like they did with the original letter of intent to nominate candidates to the Board). Re. their note about Sardar's compensation being outsized and not being aligned to company performance, it might be useful to know how to measure performance in the first place. Hint: Outsourcing your thinking to ISS is probably not a good idea. Best, Ragu Link to comment Share on other sites More sharing options...
BTShine Posted January 28, 2015 Share Posted January 28, 2015 Groveland filed a letter this morning. Well, by addressing their letter to the Board, they've saved themselves the embarrassment of addressing one to a person that is no longer employed by BH (like they did with the original letter of intent to nominate candidates to the Board). Re. their note about Sardar's compensation being outsized and not being aligned to company performance, it might be useful to know how to measure performance in the first place. Hint: Outsourcing your thinking to ISS is probably not a good idea. Best, Ragu Ragu, I appreciate your thoughts, but am not sure how to interpret them. Can you expound upon them? Link to comment Share on other sites More sharing options...
writser Posted February 4, 2015 Share Posted February 4, 2015 [..] Ignore the compensation agreement changes; ignore the two classes of shares; ignore selling the hedge fund to BH and then buying it back to reap the incentive fees; ignore the licensing agreement; ignore the complaints by franchisees; ignore the comments by those that consulted and worked at SNS; ignore long-time shareholders that were there from Western Sizzlin or Lion Fund; ignore Biglari Design and SNS by Biglari crap; ignore the deteriorating performance at SNS; ignore the increasing amount of leverage at BH and its subsidiaries; ignore the stock price which is lower than when I sold it four and a half years ago; ignore all of that which has been oft-repeated to you...doesn't the retaliatory purchase of AIRT and ISIG share prices well above where they were trading concern you in the slightest? Sardar was concerned with saving $600K a year by removing the red coloring on the styrofoam cups after taking over Steak'n Shake, but now you and other shareholders are perfectly fine excusing several million dollars spent needlessly on two companies where BH activists are sitting? [..] AIRT is down 30% since the retaliatory buying spree. ISIG is down 25%. I've been short AIRT since the filings, 'basically betting that Biglari is a retard' as per the tweet mentioned a few weeks ago. Both stocks are roughly back to where they were beforehand. I'll probably close out soon. BH appears attractively valued but I don't want to team up with somebody who is capable of stuff like this. This was not an insightful deep value play - Sardar squandered away a couple of million in these names just to annoy somebody who bought a handful of BH shares and filed a proxy. Pathetic. I guess people have to bring their own cups to SNS in the near future to make up for the losses :) . Link to comment Share on other sites More sharing options...
jschembs Posted February 4, 2015 Share Posted February 4, 2015 [..] Ignore the compensation agreement changes; ignore the two classes of shares; ignore selling the hedge fund to BH and then buying it back to reap the incentive fees; ignore the licensing agreement; ignore the complaints by franchisees; ignore the comments by those that consulted and worked at SNS; ignore long-time shareholders that were there from Western Sizzlin or Lion Fund; ignore Biglari Design and SNS by Biglari crap; ignore the deteriorating performance at SNS; ignore the increasing amount of leverage at BH and its subsidiaries; ignore the stock price which is lower than when I sold it four and a half years ago; ignore all of that which has been oft-repeated to you...doesn't the retaliatory purchase of AIRT and ISIG share prices well above where they were trading concern you in the slightest? Sardar was concerned with saving $600K a year by removing the red coloring on the styrofoam cups after taking over Steak'n Shake, but now you and other shareholders are perfectly fine excusing several million dollars spent needlessly on two companies where BH activists are sitting? [..] AIRT is down 30% since the retaliatory buying spree. ISIG is down 25%. I've been short AIRT since the filings, 'basically betting that Biglari is a retard' as per the tweet mentioned a few weeks ago. Both stocks are roughly back to where they were beforehand. I'll probably close out soon. BH appears attractively valued but I don't want to team up with somebody who is capable of stuff like this. This was not an insightful deep value play - Sardar squandered away a couple of million in these names just to annoy somebody who bought a handful of BH shares and filed a proxy. Pathetic. I guess people have to bring their own cups to SNS in the near future to make up for the losses :) . Perfectly sums up my thoughts on the situation. Link to comment Share on other sites More sharing options...
ragnarisapirate Posted February 4, 2015 Share Posted February 4, 2015 Groveland filed a letter this morning. http://www.marketwatch.com/story/groveland-calls-for-improved-corporate-governance-at-biglari-holdings-2015-01-22 In general I like Groveland's proposals. Ahahahah!!!!... Hilarious! Truly funny! Except alas that this doesn’t seem to be a joke… ;) Swenson has written a letter the content of which is simply unacceptable for Biglari. Either Swenson loses, or Biglari is gone. If Biglari is gone, he will simply find another vehicle to shrewdly manage and to make grow. BH shareholders instead will remain poor. Of course, if Biglari is gone, I am gone too. Cheers, Gio If Biglari leaves, I would think there would be a lot of people who would be happy to buy your shares. ;) Link to comment Share on other sites More sharing options...
Hielko Posted February 4, 2015 Share Posted February 4, 2015 I closed my AIRT short today. Easy money, thanks Biglari! FWIW: BH shareholders lost approximately $2 million on AIRT, so that's $1/share in intrinsic value. Link to comment Share on other sites More sharing options...
giofranchi Posted February 5, 2015 Share Posted February 5, 2015 If Biglari leaves, I would think there would be a lot of people who would be happy to buy your shares. ;) Ah! Good to know that even in my worst case scenario, the one in which Biglari is forced to leave the company, I would still be able to get out with a nice gain! ;D ;D Cheers, Gio Link to comment Share on other sites More sharing options...
mcmaaaaath Posted February 5, 2015 Share Posted February 5, 2015 If Biglari leaves, I would think there would be a lot of people who would be happy to buy your shares. ;) Ah! Good to know that even in my worst case scenario, the one in which Biglari is forced to leave the company, I would still be able to get out with a nice gain! ;D ;D Cheers, Gio Gio-- apologies if this has been asked before or if it sounds sarcastic-- its not. But is there any one specific thing that Biglari has done that you don't like? For example were you in favor of the dual share class structure? What about the name licensing /change in control contract? Link to comment Share on other sites More sharing options...
writser Posted February 5, 2015 Share Posted February 5, 2015 Surely Gio doesn't like that Sardar gave away approximately $1000 (could be off a factor 2 or 3) of his hard-earned money to me, assuming I was the counterparty from whom Gio was buying AIRT indirectly. I owe him a couple of drinks whenever a COBF Europe meeting will take place! Jokes aside, especially if you invest in BH you shouldn't view everything through rosy glasses. I think it is quite a stretch to explain the whole '13D-gate' in a favourable way. The harm Groveland did was equivalent to a kid kicking a soccer ball against your window. Biglari bought a tank to shoot down their house in response .. Link to comment Share on other sites More sharing options...
merkhet Posted February 5, 2015 Share Posted February 5, 2015 If Biglari leaves, I would think there would be a lot of people who would be happy to buy your shares. ;) Ah! Good to know that even in my worst case scenario, the one in which Biglari is forced to leave the company, I would still be able to get out with a nice gain! ;D ;D Cheers, Gio Gio-- apologies if this has been asked before or if it sounds sarcastic-- its not. But is there any one specific thing that Biglari has done that you don't like? For example were you in favor of the dual share class structure? What about the name licensing /change in control contract? If I remember, Gio spoke favorably about this as a way to maintain power -- something along the lines of that being exactly what someone in Biglari's position should do. Link to comment Share on other sites More sharing options...
merkhet Posted February 5, 2015 Share Posted February 5, 2015 I think I've said this before, and at the risk of repeating myself and turning this into something akin to the Sears or Level 3 threads, I'll say it again. :) I don't doubt that Biglari is a value creator and/or a very good investor. He will likely create tons of value for Biglari Holdings over the next decade or two (so long as he stays in power). The question is the following -- for every dollar he creates in value for Biglari Holdings, what's the split? Is it going to be: (1) $0.99 for Sardar, $0.01 for investors (2) $0.50 for Sardar, $0.50 for investors (3) $0.20 for Sardar, $0.80 for investors (4) etc. Clearly there is a continuum, and there is a place on the continuum nearer to (1) than to (3) where investing with Biglari will end up being a mistake regardless of how much value Biglari creates for Biglari Holdings. (Assuming some cap at 50% CAGR -- clearly if he can do 10,000% CAGR, 1% of that is still pretty darn good, but there are some built-in brakes to the compounding machine.) The disagreement most people are having is likely based on the percentage chance that people are putting on the various split possibilities. Many people who say they don't want to do business w/ Biglari believe that over time, so long as Biglari is in power and has the equivalent of cronies on the board, Biglari will shift the "spoils of war," so to speak, up nearer to (1) than to (3). The people who are supportive of Biglari, I am assuming, believe that over time, the split will be closer to (3) than to (1). Time will tell who ends up being right. Link to comment Share on other sites More sharing options...
OracleofCarolina Posted February 5, 2015 Share Posted February 5, 2015 http://www.sec.gov/Archives/edgar/data/1067294/000134100415000082/form-144.htm Yes, is this a partial sale? Link to comment Share on other sites More sharing options...
OracleofCarolina Posted February 5, 2015 Share Posted February 5, 2015 interesting..maybe he is going to slowly liquidate his stake...unless he needed immediate cash for something now Link to comment Share on other sites More sharing options...
gfp Posted February 5, 2015 Share Posted February 5, 2015 JPM already crossed over a hundred million dollars worth of CBRL at 132 in the afterhours session Link to comment Share on other sites More sharing options...
OracleofCarolina Posted February 5, 2015 Share Posted February 5, 2015 I thought Mr.Bigs was supposed to give us a 2 week notice on sales of CBRL? Link to comment Share on other sites More sharing options...
gfp Posted February 5, 2015 Share Posted February 5, 2015 JPM already crossed over a hundred million dollars worth of CBRL at 132 in the afterhours session Interesting. How did you find that out? I saw 855,000 shares trade at 132 in the afterhours on my quote machine. It may be also be reflected on CNBC's afterhours volume -> http://data.cnbc.com/quotes/cbrl (in fact it is) Link to comment Share on other sites More sharing options...
OracleofCarolina Posted February 5, 2015 Share Posted February 5, 2015 Maybe he is working on Radio Shack by Biglari! Link to comment Share on other sites More sharing options...
Jurgis Posted February 5, 2015 Share Posted February 5, 2015 Maybe he is working on Radio Shack by Biglari! Close, but actually: Shake Shack by Biglari! Link to comment Share on other sites More sharing options...
BTShine Posted February 6, 2015 Share Posted February 6, 2015 This is great news. I would think the rational thing to do is buy back large amounts of BH with this cash. That's my prediction for what Mr. Biglari does with the $112 million (less taxes) he's receiving from the after hours sales. Link to comment Share on other sites More sharing options...
BTShine Posted February 6, 2015 Share Posted February 6, 2015 Also, I'm excited to hear what a few of you think about this sale of CBRL by BH. Gio and Merkhet come to mind... Link to comment Share on other sites More sharing options...
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