If you are looking for clues telling you which stocks have a good chance of increasing in value, you might want consider watching where insiders are putting their money. After all, talk is cheap, but when insiders put their own money on the line, you should sit up and take note.

Biglari Holdings Inc. (BH) -- parent company of Steak 'n Shake -- topped the insider-buying charts for the week ending June 25 as insiders snapped up 27,834 shares of company stock at a market value of $8,871,287. During the past six months, insiders have increased their overall holdings in the company by 0.27% and now own 7.81% of BH stock.

Pharmacyclics Inc (PCYC) was not far behind, with insiders buying 1,075,270 shares at a market value of $7,000,008. Insiders now own 26.08% of the company's stock after decreasing their overall holdings by 0.67% during the past six months.

Sardar Biglari has done an admirable job of turning around operations at Steak 'n Shake (SNS), but over the past few months, he's made a few less-than-subtle efforts to imitate his idol Warren Buffett.

Back in December, he announced that he would do a 1-for-20 reverse split of the stock to boost the share price over $300 and "dissuade speculators." "We are attempting to eliminate those who erroneously think that it is easier for a $10 stock to go to $20 than a $200 one to go to $400," he wrote in a letter to shareholders.

Not everyone can afford a fancy restaurant this Valentine's Day, so casual dining outfits are sure to see the lion's share of the profits. Near the front of this group is Steak 'n Shake (SNS).

With more than 400 locations in the U.S., this comfort food company provides great American fare at great prices.

Valentine's Day may be a commercialized holiday to some, but there's no denying that its big business. And this coming Valentine's Day may be extra sweet since it falls on a Sunday, making it a great excuse for a romantic night out. In fact, total Valentine's Day spending is expected to reach $17.6 billion this year, up 3.3% over 2009, according to consumer spending researchers at IBISWorld.

That's a big payday, and one that investors should be paying attention to.

Sardar Biglari is a really, really smart guy.

Back in 2007, he made millions after launching an activist campaign to gain control of Friendly's -- a campaign that culminated in the sale of the company to a private equity firm at a hefty premium.

Since then, he's taken control of Western Sizzlin and Steak n' Shake (SNS), and has ambitious plans to turn Steak n' Shake into a Warren Buffett-style holding company focused on cash flow and financial metrics.

Oh, and by the way: he's 32 years old.

Not so long ago, the formula for activist investing was simple: Buy a 5% stake and file a 13-D, blasting the company's management for its poor performance and excess compensation. Raise hell until they put the company up for sale and a private equity firm takes advantage of the company's low stock price. Then cash out, having made yourself and your fellow shareholders rich. What if the company headed into the toilet after it was taken private? Not your problem.

Those days are long gone. With the private equity business the quietest it's been in a long time, there are no third parties ready to scoop up bargain-priced stocks after activist shareholders push them to the auction block. Increasingly, activist shareholders are having to stick around for the long-term, pushing for improved corporate governance and better management as a way to increase returns.

Shares of The Steak n Shake Company (NYSE: SNS) are up about 5% today on an analyst report that hedge fund manager turned shareholder activist turned Steak n' Shake CEO Sardar Biglari is "making quick strides" toward a turnaround at the company.

Biglari became chairman of the company back in June after a proxy contest that kicked out a regime that had underperformed for years, and became CEO earlier this month after the board spent a few months looking to bring someone in from the outside.

Biglari certainly qualifies as investor-friendly but he looks like could be overexposed in a role that involves turning around a restaurant chain. He's currently CEO of the much smaller Western Sizzlin Corporation (NASDAQ: WEST) chain, but his prior experience in the restaurant industry is pretty much limited to an investment in Friendly's that culminated in a sale to a private equity firm at a price that, in retrospect, appears to have been too high.

When most companies report bad numbers in a tough economy, they're quick to blame their woes on the macro picture.

This bothers me because it's pretty hypocritical: I have never once seen a company report good numbers in a good economy and tell investors in the press release that 'We're getting bailed out by the economy right now. We haven't made good strategic decisions, but hey, in a market like this, Richard Wagoner could make money! I can't believe how much we get paid for this!'

But when Steak n' Shake (NYSE: SNS) reported a loss of $9.8 million for the third quarter vs. break-even last year, the company's newly-installed CEO Sardar Biglari didn't blame high gas prices and low consumer confidence. Here's his statement from the press release:

In my view, our poor performance is not the result of poor economic conditions. Much of our operating shortfall, I believe, is the result of our own lack of execution. As a company that began in the midst of the Great Depression, we have a deep heritage from one of the great American brands and are fortunate to have attracted committed and passionate employees, benefits that we believe will allow us once again to become a thriving chain.

There is no holiday break for the rumor mill as word of many a company's activity is bantered about.



BUILD-A-BEAR WORKSHOP INC (NYSE: BBW)

As the stock shot up 14% the other day, it was revealed that the warm and fuzzy big bear hired Lehman Brothers to "explore strategic alternatives." Some analysts think an LBO is what will happen, and range the valuation at from $34 to $36. Very recently the company reduced its second quarter per share profit expectations to 7 cents to 10 cents, down from 15 cents to 19 cents, because of slow sales at stores that have been opened for at least a year. Here's a bear to be bullish on.


COUNTRYWIDE FINANCIAL CORPORATION (NYSE: CFC)

It's troubled times for the nation's largest mortgage lender. Earlier in the week the shares began to fall when it was revealed that they may be a part of a government investigation into subprime loans. It certainly doesn't help that three former company executives pleaded guilty to conducting insider trading in shares of Countrywide. The heat is on.


THE STEAK N SHAKE COMPANY (NYSE: SNS)

Two Texas investment groups, HBK Investments and Lone Star Funds, who between them own about 9.5% of the company, are said to be interested in digesting the whole dang thing. The 490 restaurant chain that has operations in 20 states just saw their most recent quarterly profit drop 30% from the previous year, as same store sales fell 4.7%. Gentlemen that they are though, they'll only pursue the sizzle if the board cooks it up with them.



STILL FLYING AROUND


WENDY'S INTERNATIONAL INC (NYSE: WEN)

They say they may want to sell the company, and the latest firm to gobble up shares is Tudor Investment, purchasing a 6.1% stake.


TD AMERITRADE HOLDING CORPORATION (NASDAQ: AMTD)

Jana Partners and S.A.C. Capital Advisors, who have about an 8.4% combined ownership of AMTD, are keeping the pressure on for the firm to partner up with another brokerage firm, and have now formalized their demands.



BUZZ


DJO INCORPORATED (NYSE: DJO): MMI Investments purchased 9.4% of the company's shares. When they buy in, they usually see the company acquired...Pride International Inc (NYSE: PDE): Spin off of foreign assets, or a possible takeover, has attracted interest...Legg Mason Inc (NYSE: LM): Pershing Square Capital, whose activist leader William Ackman has tried to push around McDonald's Corporation (NYSE: MCD) and Wendy's, has taken a 1.5% share of the company.

Earlier this week, papers filed with the SEC showed that a group of investors have purchased a 9.5% stake in Steak n Shake (NYSE: SNS). Steak n Shake is a major American restaurant chain, with nearly 500 locations throughout the Midwest and southern US.

The SEC documents indicate that HBK Management LLC leads a group of investors who have paid $412 million for 2.7 million shares of the company. HBK, based in Dallas, Texas, manages roughly $13 billion in equity capital, making it one of the larger private investment funds. The firm is named after Harlan B. Korenvaes, former Managing Director of Merrill Lynch & Co. (NYSE: MER). He founded HBK in 1991, starting with $30 million in capital.

Steak n Shake shares surged on news of the investment. Share prices had fallen in May with the company's announcement of reduced guidance for 2007 earnings, and were trading in the $15 range before the new investment. Shares have rebounded to the $17 level, up roughly 15%.

Steak n Shake is headquartered in Indianapolis. It offers a hybrid of fast food and restaurant dining, with made-to-order hamburgers (the justly famous "Steakburger"), real silverware, and milkshakes that actually contain milk. The investors say they have no plans to take control of the company, but rather seek to develop new strategies to improve the company's performance.