wescobrk

I sold RRGB a few weeks back and haven't kept up with it. I looked at the latest SEC filing and it says shares outstanding are a little over 17 million. That's a huge increase from a few weeks ago with 15.6 million roughly. Anyone know the reason? I know they released a poison pill but no one has triggered it.

Hi Sanjeev, This goes to anyone else that cares to comment that owns RRGB. I did my own research and found the cash flow to market price very compelling. Of course there are several reasons beyond that, multiple hedge funds, possibility of a sale, large margin improvement, still small enough for more restaurants down the road and others. If you don't mind Sanjeev, do you mind what if I ask what you average cost is? I bought at a relatively high price today of $17.92. Just wondering if I got in below the master? I intend to dollar cost average in my 401k for the foreseeable future if it remains around this price level.

http://www.sec.gov/Archives/edgar/data/93859/000092189510001261/form10q07428_07072010.htm BH reported 8.6 mil and SSS 7.5% with 176k gain from derivatives

Anyone think Biglari will be outvoted? CHICAGO--(BUSINESS WIRE)--As a 2.5% shareholder of Biglari Holdings (BH), formerly The Steak N Shake Company, Oak Street announced today that it intends to vote AGAINST approval of the Incentive Bonus Agreement between Biglari Holdings and Mr. Biglari, the company’s CEO, at the upcoming special shareholder meeting scheduled for August 24, 2010. Oak Street opposes this attempt to redistribute shareholder wealth to Mr. Biglari. Oak Street is concerned that the proposed incentive compensation scheme fails to align Mr. Biglari’s interests with the interests of company shareholders. Book value increases are not always tantamount to shareholder value creation. We believe shareholders would prefer that Mr. Biglari’s remuneration be directly tied to share price performance in order to ensure that shareholders and Mr. Biglari benefit in concert. An Oak Street spokesman stated “This unusual compensation scheme creates potential conflicts whereby Mr. Biglari could enrich himself at the expense of other shareholders. We are concerned that Mr. Biglari and the board are not acting in the best interest of all shareholders and we condemn the Board for this potential governance failure. We believe Mr. Biglari’s proposal has resulted in a significant loss of shareholder wealth already, as evidenced by the $100 share price decline since the compensation scheme was proposed on April 30, 2010. We intend to rigorously defend our interests as shareholders.”

Thanks Pirate for the correction. As for Western debt, he's made comments about flexibility cash affords, I doubt he'll pay off West for a couple of years. I guess we'll see. Also, it helps the performance of the Lion Fund (practically guaranteed 14%).

I read at the annual meeting he made an offer for a company with a market cap greater than $200 million but he was spurned. This is probably the company that spurned him. Once BH is trading at a high multiple to book value (when it was around $400 Sardar implied it was overvalued) he'll probably make another one but I doubt he'll do it with the stock undervalued. Also, he likes to hang on to his cash as evidenced in his 50% stock offer for Fremont even though the total cash outlay would have been less than $40 million. Finally, he still hasn't paid off Western's 14% debt. He made that offer for Fremont when the stock was cheap but it was such a small percentage of BH's market cap it would be a disaster if he made a stock tender offer with BH trading so low,especially after he spent over $20 million of his partners money in the last two weeks buying around $320 a share.