BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Steak n' Shake Plans 1 for 20 Reverse Stock Split to 'Dissuade Speculators']]>http://www.bloggingstocks.com/2009/12/17/steak-n-shake-plans-1-for-20-reverse-stock-split-to-dissuade-s/http://www.bloggingstocks.com/2009/12/17/steak-n-shake-plans-1-for-20-reverse-stock-split-to-dissuade-s/http://www.bloggingstocks.com/2009/12/17/steak-n-shake-plans-1-for-20-reverse-stock-split-to-dissuade-s/#commentsFiled under:

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.

Continue reading Steak n' Shake Plans 1 for 20 Reverse Stock Split to 'Dissuade Speculators'

Steak n' Shake Plans 1 for 20 Reverse Stock Split to 'Dissuade Speculators' originally appeared on BloggingStocks on Thu, 17 Dec 2009 15:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>FriendlysSandar BigariSandarBigariSNSSteak n SHakeSteakNShakeWEsertn SizzlinWesertnSizzlinThu, 17 Dec 2009 15:40:00 EST<![CDATA[Activist investors struggle to adjust to new market]]>http://www.bloggingstocks.com/2009/04/27/activist-investors-struggle-to-adjust-to-new-market/http://www.bloggingstocks.com/2009/04/27/activist-investors-struggle-to-adjust-to-new-market/http://www.bloggingstocks.com/2009/04/27/activist-investors-struggle-to-adjust-to-new-market/#commentsFiled under: ,

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.

Continue reading Activist investors struggle to adjust to new market

Activist investors struggle to adjust to new market originally appeared on BloggingStocks on Mon, 27 Apr 2009 10:10:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Activist InvestingActivistInvestinginthenewssnssteak n shakeSteakNShakeMon, 27 Apr 2009 10:10:00 EST<![CDATA[Time to bet on a Steak n' Shake turnaround?]]>http://www.bloggingstocks.com/2008/08/22/time-to-bet-on-a-steak-n-shake-turnaround/http://www.bloggingstocks.com/2008/08/22/time-to-bet-on-a-steak-n-shake-turnaround/http://www.bloggingstocks.com/2008/08/22/time-to-bet-on-a-steak-n-shake-turnaround/#commentsFiled under: ,

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.

Continue reading Time to bet on a Steak n' Shake turnaround?

Time to bet on a Steak n' Shake turnaround? originally appeared on BloggingStocks on Fri, 22 Aug 2008 17:25:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Sardar BiglariSardarBiglariSNSSteak n ShakeSteakNShakeFri, 22 Aug 2008 17:25:00 EST<![CDATA[New Steak n' Shake CEO blames problems on . . . Steak n' Shake!]]>http://www.bloggingstocks.com/2008/08/12/new-steak-n-shake-ceo-blames-problems-on-steak-n-shake/http://www.bloggingstocks.com/2008/08/12/new-steak-n-shake-ceo-blames-problems-on-steak-n-shake/http://www.bloggingstocks.com/2008/08/12/new-steak-n-shake-ceo-blames-problems-on-steak-n-shake/#commentsFiled under:

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.

Continue reading New Steak n' Shake CEO blames problems on . . . Steak n' Shake!

New Steak n' Shake CEO blames problems on . . . Steak n' Shake! originally appeared on BloggingStocks on Tue, 12 Aug 2008 14:33:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Sardar BiglariSardarBiglariSNSSteak n ShakeSteakNShakeTue, 12 Aug 2008 14:33:00 EST<![CDATA[This week's rumor round-up: Build-a-Bear to 'explore strategic alternatives']]>http://www.bloggingstocks.com/2007/06/29/this-weeks-rumor-round-up-build-a-bear-to-explore-strategic-a/http://www.bloggingstocks.com/2007/06/29/this-weeks-rumor-round-up-build-a-bear-to-explore-strategic-a/http://www.bloggingstocks.com/2007/06/29/this-weeks-rumor-round-up-build-a-bear-to-explore-strategic-a/#commentsFiled under: , , , ,

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.

This week's rumor round-up: Build-a-Bear to 'explore strategic alternatives' originally appeared on BloggingStocks on Fri, 29 Jun 2007 15:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AMTDBBWBuild-a-BearCFCCountrywide FinancialCountrywideFinancialDJODJO IncDjoIncHBK InvestmentsHbkInvestmentsJana PartnersJanaPartnersLBOLegg MasonLeggMasonLehman BrothersLehmanBrothersLMLone Star FundsLoneStarFundsMCDMcDonald'sMcDonald's CorpMcdonald'sCorpPDEPershing Square CapitalPershingSquareCapitalPride InternationalPrideInternationalprivate equityPrivateEquityRumorsS.A.C. Capital AdvisorsS.a.c.CapitalAdvisorsSNSspin offSpinOffSteak N ShakeSteakNShakestrategic alternativesStrategicAlternativessubprimetakeoverTD AmeritradeTdAmeritradeTudor InvestmentTudorInvestmentWENWendy'sWendy's InternationalWendy'sInternationalFri, 29 Jun 2007 15:00:00 EST<![CDATA[Shaking up Steak n Shake]]>http://www.bloggingstocks.com/2007/06/28/shaking-up-steak-n-shake/http://www.bloggingstocks.com/2007/06/28/shaking-up-steak-n-shake/http://www.bloggingstocks.com/2007/06/28/shaking-up-steak-n-shake/#commentsFiled under:

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.

Shaking up Steak n Shake originally appeared on BloggingStocks on Thu, 28 Jun 2007 10:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Harlan B. KorenvaesHarlanB.KorenvaesHBK Management LLCHbkManagementLlcMERSNSSteak n ShakeSteakNShakeThu, 28 Jun 2007 10:00:00 EST