Friday, January 29, 2010

SNS (soon to be Biglari Holdings) news release and 10Q

Here is the news release and here is the quarterly report...

All I can really think right now, is 'Damn! These are some great numbers!' In addition, I will note that if you take out all of their capital lease obligations, the company's stock is trading at ~1.08x book value; which, I would argue is pretty cheap.

Basically, if you strictly take the quarterly increase in investments and cash, the company generated $17 million in cash- right where they were at the peak a few years ago (less cap ex). Certainly, these cash flows will only be getting better in the coming years. With the investments going up a strong amount, as has been noted on other sites, there is something that Biglari has been buying. If it is a single investment, then it is pretty big (well, it would have a market cap of more than, say, $100 million), as there has not been a 13D/G filed. On second thought, $100 million isn't that big, but it is HUGE when compared to any of the nano-caps that I am a fan of. :)

In addition, the name of the holding company is being changed to Biglari Holdings. I am guessing that Sardar Biglari is planning on staying for a while. :) It will be interesting to see what the Motley Fool, IBJ, and Indy Star have to say about the name change.

More on this later.

Disclosure: Long SNS. This is not investment advice. Do a ton of your own research before buying securities.

1 comment:

Doug said...

Wow. I guess I should not be surprised at the name change. Biglari has to be one of the most narcissistic investors out there. I will remain a curious onlooker of Biglari and his company.