ragnarisapirate

I too agree that this will be a heck of a case study. Cooley's comments on never selling stock strike me as a bit grandiose, almost on the verge of either over promising or misguided. Just because they bind him to a very narrow road. Granted, I would have liked to hear the exact quote.

If the company is earning a billion dollars a year (which, I have little doubt that it eventually will) to me, it seems reasonable that the guy would arguably deserve more than $10 million bucks. Also, as Sardar is forced to buy stock with his compensation and there are fewer shares outstanding, he will be bidding the price up for the remaining shareholders. Not exactly an intrinsic value thing, but, a nice plus for remaining shareholders. All things equal, if there was a single share remaining, under Biglari's compensation agreement, it would basically have unlimited worth, as he would have to buy it. Granted, at that point, they could reverse split out of it, but, it's an interesting thing to think about. Wow! Do you really believe that Jeff? The $10M cap is in place, but he said that will probably disappear. Do you think he's really going to continually buy stock above intrinsic value? You don't think that requirement could disappear as easily as the cap? The only reason he's buying any stock in BH is because he wants to make sure he controls as many votes as he can. Once he's got enough votes to permanently secure his position, and actually then justify the name he implemented, it's going to be to hell with all of you and any restrictions on his conduct. In response, you're going to tell me that it's ok, because you'd be out by then and would have made alot of money. But the truth is, any existing BH shareholder from now till that point, would have simply facilitated this whole unholy mess. I have no doubt Sardar will be a billionaire one day...but he's going to do it on the backs of corporate shareholders...and none of those shareholders will be worth a fraction of what he will. Frankly, I can't believe he actually said that the cap would eventually be removed. That's just nuts to even say it. Cheers! Parsad, I think that you might have read a little bit too much into my comment (and I mean that with the utmost amount of respect). I certainly believe that if a guy makes a company more than a billion dollars a year that there is nothing wrong with him getting $10 million dollars (but don't get me wrong, a Buffett salary is pretty nice for shareholders if the guy is good!). If he makes the company that much money, there was a cap, and if I were a shareholder, I would feel like I wasn't giving him what he was due and would probably vote to have the cap lifted. However, if he doesn't preform, he shouldn't make money. In regards to the share purchases by Biglari, I would imagine that if he had to pay an unlimited amount of money for a share, he would find some way to get out of it (which is why I brought up the share split and should have brought up that he is supposed to make open market purchases) but who could blame him?. I think that it is an interesting thing to think about, because once you start thinking about it in terms like that, if you truly think that the compensation package is out of whack and designed to get Biglari control of the company, you start seeing what he is incintivized to do. I do think that he would make a limited amount of purchases above IV, just due to the logistics of re-doing the compensation package... He might do some sort of hedge or something though. I remember him saying at an annual that there would be things done to keep the stock price relatively close to IV (don't remember the exact wording though) Anyway, as I've said before, I don't really have much of a strong opinion in either direction on the guy's ethics (certainly, there are arguments both ways here). Due to his actions though, I won't own the stock unless it is significantly discounted from it's present price.

If the company is earning a billion dollars a year (which, I have little doubt that it eventually will) to me, it seems reasonable that the guy would arguably deserve more than $10 million bucks. Also, as Sardar is forced to buy stock with his compensation and there are fewer shares outstanding, he will be bidding the price up for the remaining shareholders. Not exactly an intrinsic value thing, but, a nice plus for remaining shareholders. All things equal, if there was a single share remaining, under Biglari's compensation agreement, it would basically have unlimited worth, as he would have to buy it. Granted, at that point, they could reverse split out of it, but, it's an interesting thing to think about.

This was the last of my questions to Sardar. I figured I'd get a "no comments" in response. I didn't, thankfully for you:). I don't know ITEX, so please keep that in mind as you read what I believe he said: He is pleased with the results of the tender because he believes ITEX is undervalued, but he does not agree with the reasons behind the tender offer. BH and/ its subsidiaries still hold all of their shares and, as a result, they now own a higher percentage of ITEX than before. He said that he'd spoken to Steven White about the compensation arrangement at ITEX. The gist of it was that Sardar would not support White unless there was a shareholder vote on the compensation proposal. In the absence of a shareholder vote, this was akin to corporate looting. HTH, Ragu Thanks Ragu. Did he give any indication as to how he was voting in the proxy?

Since the meeting starts in a few hours, I thought that we might want to make a list of questions that attendees might look at, and potentially ask for us? (cough, ragu, cough). I for one, would be really interested to know what the company thinks about ITEX as well as hearing thoughts on the recent tender...

You know, with so many value guys hating BH, that arguably makes it more likely to become a value investment...

ragnarisapirate, FWIW, BH management is on record, around the middle of last year, stating that they didn't believe BH was overvalued at around $400/sh then. Best, Ragu Saying that it's overvalued at $400/share is a bit of a stretch, so, I guess I agree with Biglari and Co; I'd say it's pretty fairly valued (with a little bit of room to run). Everything that I presently own seems (to me) to be a hell of a lot more compelling than BH at these prices, hence, I own none. Once they finally get something done (whatever it may be) at CBRL or buy an insurer, it will be really interesting. Honestly, I doubt that any of those 2 scenarios are priced into the stock, actually. Still though, I like other companies and their prices a bit better.

http://www.inquisitr.com/220855/titanic-auction-original-ticket-lunch-menu-sos-message-sold-to-private-buyers/ A telegraph that wasn't even on the ship sold for "just" $27,500... Multiply that by 5K, and you get more than the market cap of the company in cash. The problem with this company is that it has the potential to be similar to a land company that sells off a few acres of land, and people think that it is worth a ton, whereas there are not buyers for all of their land at one point. The pieces are worth less than the whole, sort of thing. That said, I do find the company interesting.

If you do that, then add in one that is "not currently, but I would at the right price." That is the camp I sit in.

I've been debating about going back to school as well (BA in General Studies that I totally slacked off in getting). Problem for me is, is that I want to take a bunch of different classes, and places around here tend to frown on not having a Masters program picked out. From where I already have a degree that creates a problem. If only I had the money to donate to them so that there would be a Masters/PHD in General Studies (or, University Studies), I'd be set. Regardless, college was the best time of my life, and I would hate to think that there are people out there that couldn't do it, just for the social aspects. You are dead on with girls and the "unemployed" mindset. In my experience, they often come up with that or the "wow. I have always wanted to know how to do that" line, which to me, they (and really, people in general) say just because they don't know what else to. Regardless, both of which have gotten annoying. As such, I have made an effort to guide conversations away from what I do. In my case, I generally work from home, but also have rent houses that provide me with stuff to occasionally do. Also, I have become a big fan of reading 10Ks and such while sitting in a bar or coffee shop. In the same vein as Sanjeev, I joke that I will eventually get my mail forwarded there, actually. ;) Bottom line is, like with investing and poker, you are probably going to have to continue finding out what works for you... When you do, please post! :)

I found this funny. Gotta love the chive. http://thechive.com/2012/04/02/this-is-all-true-seriously-no-really-39-photos/this-is-true-38/

Yeah, Buffett never took over a company so that he could fire the CEO... NEVER. Oh, wait a minute... That's exactly what he did with Berkshire!

Interlibrary Loan... It is a great thing to ask about. I just call up my library and they make the request for me. Saves a ton of leg work. I actually got some Wall St Transcripts printed and sent to me that way (and those things can cost you)!

There has yet to be any 13D filed, so there is one hole... Add to it that there haven't been THAT many shares trading hands, and I would put the theory of a bidder buying the company as being very unlikely. A good idea that would probably do them well, but, unlikely, nonetheless. I say this, because with the resources to buy all the assets, why would it do them any good to buy just 5% of the company? It wouldn't reduce their purchase price THAT much. In the event that they are wanting control, based on the average volume for the last 90 days, even if a single entity would have bought every single share of stock that traded hands for the past 3 months, they still wouldn't control 1/2 of the company. Furthermore, is it likely that the board would let them control a fair bit of the company and make a bid for it without instituting a poison pill to negate the arbitrage? I personally doubt it.

It depends on the stock. Something like SVU, I am not super convinced about, but think that the risk reward make it attractive enough for me to be long. I a have a lot of conviction about SYTE, though, averaged in at prices less than it is trading at. Every situation is fluid and requires analysis that you can live with. To put it in perspective. If you have 100% conviction (or rather correctness) that you are sitting on a 70 cent dollar, and 20% conviction that you are sitting on a 2 cent dollar, what do you allocate towards? I would argue that you do what makes you comfortable. While 20% on a 2 cent dollar isn't exactly Ben Graham, under the right circumstance, there is a place for it in certain portfolios (being relatively young, with time on my side, I have a few of them making up very small positions). I wouldn't bet the farm on it, but, I would likely be willing to make a really small bet. Thoughts?

Doubtful. ;) Here is a good story about it... well, sort of. http://espn.go.com/mens-college-basketball/tournament/2012/story/_/id/7747670/2012-final-four-louisville-cardinals-fan-punches-kentucky-wildcats-fan-dialysis-clinic

Lexington, KY

It seems that it might be interesting to buy some sort of leap or levered ETF for natural gas? Is anyone playing this?

Out of question, what do these companies do? To me, irrespective of their industries, it is interesting that they have yet to go belly up. After all, if there is anything that we learn from capitalism, it is that all companies eventually fail...

I can generally get a pretty good idea of if I like something within minutes of looking at it... Granted, I won't pull the trigger (generally) til I have done a decent bit of research. But this whole "need" for doing a specific amount is ridiculous. Sometimes something just screams buy me! When that happens, I have never been gun shy. That said, I have spent years following a given firm, and never bought until it made sense. I agree with all of the members that have said there is no rule... I will say this though: for me, I have never EVER put anything in excel (actually, I think I might have once, but, that was kind of a fluke). For me, if I have to run scenarios where I am concerned about a few points in a company's margins or get to concerned about a discount rate, I am probably too close to the line to invest. For me, there are just too many things out there that I know are beyond a shadow of a doubt, are a GREAT value. Then again, I am not constrained by hundreds of millions of dollars in capital. :)

Man, this makes me start to feel euphoric about not only the economy, but also the stock market... I guess that means that I should start to get really scared and raise cash?

Datawatch is a growth story... I don't see value (relative to market cap), but, it is a good story. Management seems to be excellent.

UWN.

Here's a hint regarding the assumption that I believe will be shown to be incorrect: Never say never. Best, Ragu I am really curious as to how money that is paid to Biglari could ever get to shareholders... The only situation that I can see, is that a percent of his compensation has to go to buying shares (irrespective of the price of BH), so, I guess that some of the money does go back to shareholders in that sense... I guess I was in error, in that sense. However, other than that (which, to some extent can be quantified) I am curious as to what can happen.

geeze, that would be nice for the warrant holders out there...