Biglari Holdings - 500 Beiträge pro Seite

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WKN ist falsch zugeordnet; es handelt sich hier um einen Berkshire-Epigonen:

On Wednesday July 14, 2010, 1:10 pm

NEW YORK (AP) -- Shares of Biglari Holdings Inc. rose on Wednesday after an analyst upgraded the operator of Steak n Shake and Western Sizzlin restaurants, saying its stock is cheap and represents a buying opportunity.

THE SPARK: CL King analyst Michael Gallo upgraded shares to "Accumulate" from "Neutral," noting shares have fallen 32 percent since reaching around $400 April. He believes the closely-held stock's current valuation below $300 is "now compelling."

He set a target share price of $350.

THE BIG PICTURE: Restaurants were hurt in the recession as people limited their spending. But dining out is starting to come back as people become more comfortable with their finances. So if a restaurant operator like Biglari thinks its business is improving, that can show lots about the economy.

THE ANALYSIS: Gallo said the Steak n Shake business is seeing more guests come in and spend more money, and the business has turned around. He noted a new prototype with larger formats that will cost less than the old versions. CEO Sardar Biglari has said franchising could help the brand grow, and Gallo said there should be interest from franchisees.

"It will take time to build the pipeline, but we don't believe any ability to grow is priced in to the stock price," he wrote.

SHARE ACTION: Shares rose $12.30, or 4.3 percent, to $299.69 in afternoon trading Wednesday. Shares have traded in a range of $196.40 to $418 in the past 52 weeks.

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Biglari Holdings Starts To Look Interesting
by: Devon Shire July 19, 2010 | about: BH


Biglari Holdings (BH) is a holding company that young value investor Sardar Biglari has created. The main piece of Biglari Holdings is Steak N Shake, which Biglari gained control of and has turned around remarkably quickly.

Biglari and his board of directors recently put forward a unique compensation plan for Sardar which will have him paid for performance. This plan, although designed to align Biglari's interests with shareholders, is also quite controversial for various reasons that I will examine later. This plan being announced has resulted in a rather large sell off of BH shares from $400 down to $280.

So the question for today is are they an interesting value at these prices?

Back of the envelope valuation to see if more work is warranted:

* Cash flow from operations at current run rate - $60mil
* Annual maintenance capex - ($10mil)
* Cash flow available to owners - $50mil
* Assign a 10 multiple as a fair price $50mil x 10 = $500mil
* Add cash and securities of - $81mil
* Less long term debt of - $25mil
* And the resulting value of the enterprise is $500mil + $81mil - $25mil = $555mil
* Value per share is $555mil / 1,431,608 shares = $388 per share

Current share price is $280, which is $280/$388 = 72% of the rough estimate of fair value. Or an upside of about 39% to reach fair value.

Conclusion: Given Biglari's track record as an investor, investing with it at a sizable discount could be quite attractive. This is just a rough valuation, though, so more work is required. As is some soul searching and analysis of that compensation package.

Disclosure: No current position in BH

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SAN ANTONIO, TX, Oct. 11 /PRNewswire-FirstCall/ -- Biglari Holdings Inc. today announced a proposal to acquire 100% of the issued and outstanding shares of common stock of Fremont Michigan InsuraCorp, Inc. (OTC Bulletin Board: FMMH.OB) that it does not already own for a purchase price of $29 per share in cash. The purchase price represents a 41% premium over the closing price of Fremont's common stock on October 11, 2010. Biglari Holdings is presenting its proposal to the Fremont Board, expecting its Board to exercise its fiduciary duties and therefore meet with Biglari Holdings to reach a mutually satisfactory transaction.

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San Antonio, TX, February 8, 2011 /PRNewswire/ -- Biglari Holdings Inc. today announced that its Board of Directors has approved a 1-for-15 reverse stock split. The Company will issue a release to announce the effective date of the reverse stock split. No fractional shares will be issued in connection with the reverse stock split. Shareholders will receive a cash payment in lieu of fractional shares based upon the average of the high and low trading prices on the effective date.

The rationale prompting the decision to initiate the reverse stock split is for the Company to continue to attract long-term owners whose purpose is to prosper in concert with the Company's progress. The reverse stock split does not change the Company's intrinsic value. At the upcoming shareholders meeting, a second class of stock will be presented for the approval of the shareholders. Subject to approval of the shareholders and the New York Stock Exchange, the economic value of the class B stock would be 1/50 of the current common stock.