Friday, April 30, 2010

It was a busy day for Biglari Holdings

Now, we are effectively in a lawsuit against some of the directors of Fremont, are tying to exchange shares of the company for shares Advanced Auto Parts, and now own Biglari Capital (which manages the Lion Fund). In addition, Biglari is getting a hefty incentive bonus, while being forced to buy stock on terms that I really like... plus, his intentions on being with the company should not be in doubt.

This is certainly interesting to think about, even though there isn't anything that shouldn't of been expected. If everything works out well, Biglari will own a ton of the company, float will be significantly reduced, he will have a ton of economic incentive, and shareholders will be rewarded too. Since I never thought that he was the type of guy that would sandbag shareholders because he wasn't making enough money, I do feel poorer than I did about an hour ago. With that said, I am far from angry, and don't plan on selling any of my shares; the guy does deserve to have the chance to make a ton of money- plus, it is in a way that aligns his interests with shareholders. In all likelihood, I will be a shareholder of BH for the majority of my life, and frankly, am quite optimistic about the future of the company and stock.

I think that I may not log onto google reader for a while, as I am not interested in reading the shit storm that is probably going to be coming the way of Biglari.

Don't worry, I will have my BH meeting note up early in the week- I should have ample time since I will be going out to the VIC in Pasadena and to the Wesco Meeting.

Disclosure: Long BH. Do your own research. There is no investment advice in this blog.

Friday, April 23, 2010

Boss Holdings Update... number 2.

Here is the 8K from BSHI, where stock holders approved the reverse and forward stock splits at the annual meeting.

Today, numerous shares traded hands at a price that is significantly less than the $7.65/shr buyout that was offered by the board for accounts owning less than 100 shares of stock. There had been significant volume in the days before the meeting, yet, the price was not where it should of been- super close to $7.65/shr.

I am somewhat surprised by this, but I openly suppose that the people smart enough to do this sort of thing, either don't know about it, don't have the cash laying around in their broker accounts, or are not enticed by making a few hundred bucks. As I have said before, you can do this over multiple brokerage accounts, and further your arbitrage; I did so with 5 accounts. At my cost basis, I will make ~$700 bucks, over the course of a few months, having tied up little capital, and in doing so, took on a minimal amount of risk on my invested capital.

It may make me cheap, but the way I see it, I just paid for my hotel, plane ticket, meals, AND boozing money for the VIC in Pasadena. :D

EDIT: Looking back on it, I probably should of opened a plethora of broker accounts to take advantage of this; literally, I should have spend a day doing nothing but devoting my time to play this arbitrage.

Disclosure: I own shares of BSHI. This is not investment advice. Always do your own research before doing anything I write about.

Tuesday, April 20, 2010

Immigration in Arizona.

Here is some info on the newly passed immigration law in Arizona.

While I don't know of a just and simultaneously non-messy solution for the illegal immigration issue, I do know this: it seems stupid to solve the commonly quoted problem of 'paying for illegal immigrants health care' by jailing them for up to 6 months; during which time, we would give them healthcare. Just sayin'.

Don't worry, SNS annual meeting notes are on the way, and soon at that. :)

Wednesday, April 14, 2010

Jim Bunning and Rand Paul

In light of Jim Bunning endorsing Rand Paul, I have only one thought: Trey Grayson is fucked.

Sunday, April 11, 2010

notes.

I have received a ton of emails asking me if I was in attendance of the SNS (now, Biglari Holdings) annual meeting and if I plan on posting my notes.

To answer: yes, and yes. I will be getting them up in the near future, and don't worry, it will be a long post.