Sardar & Cooley to join CAW's board

[Frozen Tundra]

http://www.prnewswire.com/news-releases/cca-industries-inc-announces-the-nomination-of-two-new-directors-and-the-retirement-of-two-directors-122684188.html

 

[Frozen Tundra]

Both were elected to the board yesterday.

 

"At the annual meeting of the shareholders of CCA Industries, Inc. held on August 4, 2011, the following directors were elected by the Common Stock shareholders:

Sardar Biglari, 3,160,862 votes for, 241,409 votes withheld

Dunnan D. Edell, 2,413,839 votes for, 988,432 votes withheld

Philip L. Cooley, 3,139,009 votes for, 263,262 votes withheld "

 

Thoughts?

[ragnarisapirate]

Both were elected to the board yesterday.

 

"At the annual meeting of the shareholders of CCA Industries, Inc. held on August 4, 2011, the following directors were elected by the Common Stock shareholders:

Sardar Biglari, 3,160,862 votes for, 241,409 votes withheld

Dunnan D. Edell, 2,413,839 votes for, 988,432 votes withheld

Philip L. Cooley, 3,139,009 votes for, 263,262 votes withheld "

 

Thoughts?

 

I'm not a shareholder of BH or CAW, but if I was, I would view this as a good development.

 

In other news, Cracker Barrel is well below the average of where BH bought shares... I am sure that there are people out there that would disagree, but, if they were out there (and traded for a reasonable price), I would love to buy some CBRL LEAPS.

[Parsad]

I'm not a shareholder of BH or CAW, but if I was, I would view this as a good development.

 

Depends on whether you are happy with just creation of economic value or you also want to be treated like an owner.  You'll probably get the former, but not the latter. 

 

In other news, BH's special AGM was started then postponed to September 5th today...looks like not enough votes for a quorum or something.  Are shareholders feeling disenfranchised?  Also, someone indicated to me that the leveraging of SNS was suggested in ISS's report, and that Biglari could use the funds to buy back shares and get more control.  Did anyone read the report?  Cheers!

 

http://www.sec.gov/Archives/edgar/data/93859/000092189511001561/defa14a07428_08052011.htm

 

[OracleofCarolina]

Cooley and Biglari resigned from CCA board effective last week.

 

I don't read much into this, it is such a small position for BH.

Since CCA recently hired a new CEO and changed the way they are structured, I would guess Phil and Sardar are moving on. My recollection is there are some very expensive change of control rules until 2016 to prevent any buyout of the company, but I could be mistaken on this.

[Greg]

At last year's CAW annual meeting there were more votes withheld from Cooley than for him (1,460,853 votes for, 1,491,385 votes withheld). Sardar got 1,522,740 votes for, 1,429,498 votes withheld. Unusual for directors proposed by the company. I don't know if the tally for next week's annual meeting had anything to do with their resignations. See below from last year's 8-K report on voting.

 

22-Jul-2013

 

Submission of Matters to a Vote of Security Holders, Other Events

 

 

Item 5.07 Submission of Matters to a Vote of Security Holders

At the annual meeting of the shareholders of CCA Industries, Inc. held on July 18, 2013, the following directors were elected by the Common Stock shareholders:

Sardar Biglari - 1,522,740 votes for, 1,429,498 votes withheld Philip L. Cooley - 1,460,853 votes for, 1,491,385 votes withheld Drew Edell - 2,510,006 votes for, 442,232 votes withheld

 

The following directors were elected by the Common Stock Class A shareholders:

David Edell - 967,702 votes for, 0 votes withheld Stanley Kreitman - 967,702 votes for, 0 votes withheld Robert Lage - 967,702 votes for, 0 votes withheld Jonathan Rothschild - 967,702 votes for, 0 votes withheld

[OracleofCarolina]

http://www.sec.gov/Archives/edgar/data/721447/000092189514002457/ex991to13da607428018_111414.htm

 

So Biglari gets the "put option" at $6 essentially in 3 years(about 20% annual return)  and board representation. I guess in return he can't give the current mgmt any grief through proxy fights or make an offer for the company. I wonder how the stock reacts tomorrow?

[OracleofCarolina]

anyone still following CCA Industries? Current results came out yesterday and they were pretty bad

http://www.sec.gov/Archives/edgar/data/721447/000072144715000013/cca0531201510q.htm

 

At least Biglari can put his shares back at $6 and current price is in the mid $2's. This is a company that depends on new products and I don't see anything on the horizon that would change their results.