BH - Biglari Holdings

[Jurgis]

Harambe for ISIG board!

[kh812000]

That Sardar certainly has talent.  Too bad he's wasting his time on vendettas instead of using his skill creating value for BH shareholders...  Sort of frustrating as a shareholder....

 

[BTShine]

That Sardar certainly has talent.  Too bad he's wasting his time on vendettas instead of using his skill creating value for BH shareholders...  Sort of frustrating as a shareholder....

 

If you believe in buybacks of undervalued stock as a way to create value, then he might be more effective in the end than people think

[kh812000]

Buybacks of an undervalued stock with the expectation that the discount will close at some point I agree makes sense.  Instigating revenge tactics to humiliate an activist on ISIG is just a waste.  Why is he spending time on a dead end 27mm mico cap ISIG which wont move the needle at all for BH shareholders.... He should be spending his time for example going activist on a 1B mkt cap co.  like the old days when Sardar created value for others and not just himself...

And yes I am a holder of BH!

 

[awindenberger]

One might say that Biglari is creating tremendous value for those that are willing to remain long term shareholders with him since he's scooping up a bunch of BH shares now, while giving us plenty of time to increase our own positions.

[kh812000]

Uh sure tons of value going activist on 27mm mkt cap. co....

???

[DonFanucci]

Uh sure tons of value going activist on 27mm mkt cap. co....

???

 

One might say that Biglari is creating tremendous value for those that are willing to remain long term shareholders with him since he's scooping up a bunch of BH shares now, while giving us plenty of time to increase our own positions.

[Kuhndan]

Maxim Names World-Renowned Supermodel And Entrepreneur Alessandra Ambrosio As Special Lifestyle Editor

 

NEW YORK, Aug. 17, 2016 /PRNewswire/ -- Maxim, the leading voice in men's luxury lifestyle, announces the appointment of world-renowned supermodel and entrepreneur Alessandra Ambrosio as Special Lifestyle Editor.

 

Celebrated worldwide as a consummate supermodel and entrepreneur, Ambrosio will bring her worldly sophistication, chic and elegance to Maxim's editorial team as the magazine emphasizes high-end lifestyle content. In Ambrosio's new position, she will work with Editor-in-Chief Sardar Biglari to provide readers with interesting and useful insights.

 

"I've been working closely with Sardar and his team over the last few months to develop new and interesting stories that put Maxim at the forefront of luxury lifestyle. I'm genuinely thrilled that I will now begin contributing to the magazine," Ambrosio said. "We have lots of great things planned, and I'm excited to get to work!"

 

Biglari noted their work together: "I've been impressed by Alessandra's ideas for turning her experiences as a global connoisseur into new features for the magazine. I look forward to our collaborating on varied and various projects."

 

Maxim has recently achieved industry-leading success by repositioning itself as a luxury magazine. To illustrate, Ambrosio appeared on the cover of Maxim's December/January 2016 issue, which sold more newsstand copies than any other men's lifestyle magazine for the last 18 months.

 

Alessandra Ambrosio has created and sold her own swimwear line and started her own fashion and lifestyle brand, named ále by Alessandra.

 

[TwoCitiesCapital]

Maxim Names World-Renowned Supermodel And Entrepreneur Alessandra Ambrosio As Special Lifestyle Editor

 

NEW YORK, Aug. 17, 2016 /PRNewswire/ -- Maxim, the leading voice in men's luxury lifestyle, announces the appointment of world-renowned supermodel and entrepreneur Alessandra Ambrosio as Special Lifestyle Editor.

 

Celebrated worldwide as a consummate supermodel and entrepreneur, Ambrosio will bring her worldly sophistication, chic and elegance to Maxim's editorial team as the magazine emphasizes high-end lifestyle content. In Ambrosio's new position, she will work with Editor-in-Chief Sardar Biglari to provide readers with interesting and useful insights.

 

"I've been working closely with Sardar and his team over the last few months to develop new and interesting stories that put Maxim at the forefront of luxury lifestyle. I'm genuinely thrilled that I will now begin contributing to the magazine," Ambrosio said. "We have lots of great things planned, and I'm excited to get to work!"

 

Biglari noted their work together: "I've been impressed by Alessandra's ideas for turning her experiences as a global connoisseur into new features for the magazine. I look forward to our collaborating on varied and various projects."

 

Maxim has recently achieved industry-leading success by repositioning itself as a luxury magazine. To illustrate, Ambrosio appeared on the cover of Maxim's December/January 2016 issue, which sold more newsstand copies than any other men's lifestyle magazine for the last 18 months.

 

Alessandra Ambrosio has created and sold her own swimwear line and started her own fashion and lifestyle brand, named ále by Alessandra.

 

Ha! from creeped out at the photo shoot to working with him at the magazine. Wouldn't have expected that. I bet he puts her office right next to his.

[DonFanucci]

Maxim Names World-Renowned Supermodel And Entrepreneur Alessandra Ambrosio As Special Lifestyle Editor

 

NEW YORK, Aug. 17, 2016 /PRNewswire/ -- Maxim, the leading voice in men's luxury lifestyle, announces the appointment of world-renowned supermodel and entrepreneur Alessandra Ambrosio as Special Lifestyle Editor.

 

Celebrated worldwide as a consummate supermodel and entrepreneur, Ambrosio will bring her worldly sophistication, chic and elegance to Maxim's editorial team as the magazine emphasizes high-end lifestyle content. In Ambrosio's new position, she will work with Editor-in-Chief Sardar Biglari to provide readers with interesting and useful insights.

 

"I've been working closely with Sardar and his team over the last few months to develop new and interesting stories that put Maxim at the forefront of luxury lifestyle. I'm genuinely thrilled that I will now begin contributing to the magazine," Ambrosio said. "We have lots of great things planned, and I'm excited to get to work!"

 

Biglari noted their work together: "I've been impressed by Alessandra's ideas for turning her experiences as a global connoisseur into new features for the magazine. I look forward to our collaborating on varied and various projects."

 

Maxim has recently achieved industry-leading success by repositioning itself as a luxury magazine. To illustrate, Ambrosio appeared on the cover of Maxim's December/January 2016 issue, which sold more newsstand copies than any other men's lifestyle magazine for the last 18 months.

 

Alessandra Ambrosio has created and sold her own swimwear line and started her own fashion and lifestyle brand, named ále by Alessandra.

 

Ha! from creeped out at the photo shoot to working with him at the magazine. Wouldn't have expected that. I bet he puts her office right next to his.

 

Sardar basically attributed that story to people who are jealous of success at the annual meeting. The photographer of the shoot in question said: "In absolutely no way did the described situation occur,” he said in a statement released via Maxim. “Alessandra was a dream to work with and enjoyed the photo shoot. She was incredibly pleased with both her cover and the spread." Now she was just hired. It all seems to point to a false story.

[TedKord]

Steak 'n Shake bringing a 400m new deal. UOP proceeds to pay off all other debt and pay a 230m dividend to BH.

[awindenberger]

Steak 'n Shake bringing a 400m new deal. UOP proceeds to pay off all other debt and pay a 230m dividend to BH.

 

Very interesting. I imagine a large portion will be used to pay back JPM so they can keep the CBRL shares.

 

Do they have another purchase in the works? Or will Biglari simply buy back more BH.

[InelegantInvestor]

Mr. Biglari loves leverage, especially when it's cheap. But even cheap leverage has a way of surprising you at the most inopportune time.

[awindenberger]

Mr. Biglari loves leverage, especially when it's cheap. But even cheap leverage has a way of surprising you at the most inopportune time.

 

Actually Biglari has been very good at making sure not to be over-leveraged. This will bring total debt up to $400mil, compared to cash and investments of over $1Bil.

[OracleofCarolina]

https://www.sec.gov/Archives/edgar/data/93859/000134100416001663/form8-k.htm

 

Sardar is not going through with the bond offering.

[awindenberger]

https://www.sec.gov/Archives/edgar/data/93859/000134100416001663/form8-k.htm

 

Sardar is not going through with the bond offering.

 

Interesting. I wonder if they had a potential deal lined up that fell through.

[Kuhndan]

Wonder if they couldn't get it done?

[morningstar]

Wonder if they couldn't get it done?

 

The deal wasn't going to price anywhere near where they wanted it to; launched in the mid-8s, probably could have gotten the deal done between the mid-9s and 10% range but chose to withdraw instead.

[shalab]

Biglari reports earnings

 

https://www.sec.gov/Archives/edgar/data/93859/000092189516006004/form10q07428007_11042016.htm

 

Biglari is firmly in control with 51% of 2.067 million shares. Book value per share is $223. P/B is at 1.88 and can't be termed as cheap compared to FRFHF. Using the EV/EBITDA multiple, the stock looks expensive.

[awindenberger]

Biglari reports earnings

 

https://www.sec.gov/Archives/edgar/data/93859/000092189516006004/form10q07428007_11042016.htm

 

Biglari is firmly in control with 51% of 2.067 million shares. Book value per share is $223. P/B is at 1.88 and can't be termed as cheap compared to FRFHF. Using the EV/EBITDA multiple, the stock looks expensive.

 

You need to use 1.21M shares to calculate Book value per share, not 2.07M. Most of the shares Biglari controls are owned by shareholders via their ownership of the Lion Funds. Thus P/B is actually $381/share.

[shalab]

From 2015 10-K

 

Rights Offering

On September 12, 2014 and September 16, 2013, Biglari Holdings completed offerings of transferable subscription rights, distributing one transferable subscription right (“Rights”) for each share of its common stock to shareholders.  Every five Rights entitled a shareholder to subscribe for one share of common stock at a price of $250.00 and $265.00, respectively.  Shareholders on the record date who fully exercised the Rights distributed to them were also entitled to subscribe for and purchase additional shares of common stock not purchased by other Rights holders through their basic subscription privileges.  The offerings were oversubscribed and 344,261 and 286,767 new shares of common stock were issued, respectively.  The Company received net proceeds of $85.9 million and $75.6 million from the offerings, respectively.  Including the issuance of the newly subscribed shares the Company had 2,066,691 shares outstanding as of December 31, 2015.

 

Biglari reports earnings

 

https://www.sec.gov/Archives/edgar/data/93859/000092189516006004/form10q07428007_11042016.htm

 

Biglari is firmly in control with 51% of 2.067 million shares. Book value per share is $223. P/B is at 1.88 and can't be termed as cheap compared to FRFHF. Using the EV/EBITDA multiple, the stock looks expensive.

 

You need to use 1.21M shares to calculate Book value per share, not 2.07M. Most of the shares Biglari controls are owned by shareholders via their ownership of the Lion Funds. Thus P/B is actually $381/share.

[shalab]

And the most recent 10-Q:

 

As of November 1, 2016, 2,066,965 shares of the registrant’s Common Stock, $.50 stated value, were outstanding.

 

 

From 2015 10-K

 

Rights Offering

On September 12, 2014 and September 16, 2013, Biglari Holdings completed offerings of transferable subscription rights, distributing one transferable subscription right (“Rights”) for each share of its common stock to shareholders.  Every five Rights entitled a shareholder to subscribe for one share of common stock at a price of $250.00 and $265.00, respectively.  Shareholders on the record date who fully exercised the Rights distributed to them were also entitled to subscribe for and purchase additional shares of common stock not purchased by other Rights holders through their basic subscription privileges.  The offerings were oversubscribed and 344,261 and 286,767 new shares of common stock were issued, respectively.  The Company received net proceeds of $85.9 million and $75.6 million from the offerings, respectively.  Including the issuance of the newly subscribed shares the Company had 2,066,691 shares outstanding as of December 31, 2015.

 

Biglari reports earnings

 

https://www.sec.gov/Archives/edgar/data/93859/000092189516006004/form10q07428007_11042016.htm

 

Biglari is firmly in control with 51% of 2.067 million shares. Book value per share is $223. P/B is at 1.88 and can't be termed as cheap compared to FRFHF. Using the EV/EBITDA multiple, the stock looks expensive.

 

You need to use 1.21M shares to calculate Book value per share, not 2.07M. Most of the shares Biglari controls are owned by shareholders via their ownership of the Lion Funds. Thus P/B is actually $381/share.

[Txvestor]

And the most recent 10-Q:

 

As of November 1, 2016, 2,066,965 shares of the registrant’s Common Stock, $.50 stated value, were outstanding.

 

 

From 2015 10-K

 

Rights Offering

On September 12, 2014 and September 16, 2013, Biglari Holdings completed offerings of transferable subscription rights, distributing one transferable subscription right (“Rights”) for each share of its common stock to shareholders.  Every five Rights entitled a shareholder to subscribe for one share of common stock at a price of $250.00 and $265.00, respectively.  Shareholders on the record date who fully exercised the Rights distributed to them were also entitled to subscribe for and purchase additional shares of common stock not purchased by other Rights holders through their basic subscription privileges.  The offerings were oversubscribed and 344,261 and 286,767 new shares of common stock were issued, respectively.  The Company received net proceeds of $85.9 million and $75.6 million from the offerings, respectively.  Including the issuance of the newly subscribed shares the Company had 2,066,691 shares outstanding as of December 31, 2015.

 

Biglari reports earnings

 

https://www.sec.gov/Archives/edgar/data/93859/000092189516006004/form10q07428007_11042016.htm

 

Biglari is firmly in control with 51% of 2.067 million shares. Book value per share is $223. P/B is at 1.88 and can't be termed as cheap compared to FRFHF. Using the EV/EBITDA multiple, the stock looks expensive.

 

You need to use 1.21M shares to calculate Book value per share, not 2.07M. Most of the shares Biglari controls are owned by shareholders via their ownership of the Lion Funds. Thus P/B is actually $381/share.

 

 

 

True, but also remember theres a hedge fund like fee structure on that section of the shareholder ownership structure. Surely there has to be some sort of adjustmet for that. Its quite unethical if you ask me. But alas thats what it is, and what shareholders have accepted/been forced to accept. Thus far I haven't seen much to make it a worthy arrangement to the shareholders, however I have seen it pay off very well for a thus far very mediocre capital allocation performance.

[shalab]

Makes sense - smaller number of shares is used for a smaller denominator which increases the fees to Biglari. The larger number is the actual number used for voting purposes which also benefits Biglari as he votes the shares held in the funds.

 

I like to use the number of shares that are used in voting as they represent the actual number.

 

And the most recent 10-Q:

 

As of November 1, 2016, 2,066,965 shares of the registrant’s Common Stock, $.50 stated value, were outstanding.

 

 

From 2015 10-K

 

Rights Offering

On September 12, 2014 and September 16, 2013, Biglari Holdings completed offerings of transferable subscription rights, distributing one transferable subscription right (“Rights”) for each share of its common stock to shareholders.  Every five Rights entitled a shareholder to subscribe for one share of common stock at a price of $250.00 and $265.00, respectively.  Shareholders on the record date who fully exercised the Rights distributed to them were also entitled to subscribe for and purchase additional shares of common stock not purchased by other Rights holders through their basic subscription privileges.  The offerings were oversubscribed and 344,261 and 286,767 new shares of common stock were issued, respectively.  The Company received net proceeds of $85.9 million and $75.6 million from the offerings, respectively.  Including the issuance of the newly subscribed shares the Company had 2,066,691 shares outstanding as of December 31, 2015.

 

Biglari reports earnings

 

https://www.sec.gov/Archives/edgar/data/93859/000092189516006004/form10q07428007_11042016.htm

 

Biglari is firmly in control with 51% of 2.067 million shares. Book value per share is $223. P/B is at 1.88 and can't be termed as cheap compared to FRFHF. Using the EV/EBITDA multiple, the stock looks expensive.

 

You need to use 1.21M shares to calculate Book value per share, not 2.07M. Most of the shares Biglari controls are owned by shareholders via their ownership of the Lion Funds. Thus P/B is actually $381/share.

 

 

 

True, but also remember theres a hedge fund like fee structure on that section of the shareholder ownership structure. Surely there has to be some sort of adjustmet for that. Its quite unethical if you ask me. But alas thats what it is, and what shareholders have accepted/been forced to accept. Thus far I haven't seen much to make it a worthy arrangement to the shareholders, however I have seen it pay off very well for a thus far very mediocre capital allocation performance.

[awindenberger]

You've helped me remember why BH is still undervalued; most people looking at the company miss the value because its structured in an unusual way.

 

As I pointed out, over half the shares outstanding are owned by The Lion Funds, which in turn are in large part owned by Biglari Holdings. Its a bit circular and unusual, since usually these shares would have been bought-back and retired. However, keeping them outstanding is what has given Biglari 50%+ control. If you are a Biglari fan, as I am, that's a positive. If not, I can see why many consider this a governance issue.

 

June 30, 2016 13 D Filing

 

The Lion Fund I: 365,726 BH shares owned. BH ownership % of TLFI: 64.9%. Net BH shares self-owned by BH: 237,557

The Lion Fund II: 653,407 BH shares owned. BH ownership % of TLFI: 95.2%. Net BH shares self-owned by BH: 622,043

 

Total self-owned BH shares: 859,600