Biglari Takes Stake in Unico-American!

[Ballinvarosig Investors]

http://www.sec.gov/Archives/edgar/data/93859/000092189512002178/sc13d07428029_11122012.htm

 

Trading at about book value, have posted some very good underwriting numbers in recent years. You'd get expect a takeout at about 17 bucks. Interesting.

[nwoodman]

Thanks, that explains the recent price action.  Life just got interesting for the Cheldin's

 

Cheers

 

nwoodman

[mysticdrew]

Was wondering when he'd try to get into insurance!

[AAOI]

Ha, that's the second time Biglari has built a stake in a (in this case former) insurance holding of mine - PMIC was bought out late last year.

 

While I'm a little stale on UNAM, his stake makes a fair amount of sense from a high level given Biglari's modus operandi and considering how under leveraged the company is - not to mention what has historically been an absurdly profitable insurance operation. Perhaps the idea is to press management to employ a capital structure more in line with peers or maybe he'll do something similar to his actions at PMIC and push for a sale given the small size of the company and all the costs that could theoretically be wrong out by a strategic acquirer? Might be worth revisiting...

 

For anyone that's interested in UNAM, I've posted the link to my old write-up below

 

http://www.aboveaverageodds.com/2009/12/11/investment-analysis-the-unico-american-corporation-an-obscureunderappreciated-microcap-left-behind-in-the-recent-rally/

 

http://www.aboveaverageodds.com/2010/04/29/investment-analysis-the-penn-miller-holding-corporation-pmic-a-classic-low-risk-high-return-special-situation-with-a-turnaround-twist/ 

[OracleofCarolina]

Welp, no surprise but Biglari lost the proxy battle with CBRL..here is a little coverage of his reaction

 

http://m.bizjournals.com/nashville/blog/2012/11/brush-with-biglari-leads-to-rolled.html?ana=yfcpc&r=full