This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Fun and Fireworks at Annual Meetings

NEW YORK ( TheStreet) -- The Berkshire Hathaway (BRK.A) annual meeting, coming up in early May, has become the stuff of legends, and is not your typical shareholder gathering. This is a weekend event, attended by thousands, complete with a reception, 5K, picnic, and exclusive shareholder shopping at a Berkshire owned company (Borsheims), and "Steak Night." Most if not all other annual meetings pale in comparison to this event, and are typically not well attended by shareholders.

One that is well-attended, however, especially given the size of the company, is the Biglari Holdings (BH) annual meeting, coming April 4 in NYC. I try not to miss this meeting; and this year should prove to be especially interesting.

Biglari Holdings has been embroiled in a fairly well publicized battle with Cracker Barrel (CBRL - Get Report) , haven taken a 20% stake in the country dining chain. Biglari Holdings CEO Sardar Biglari has not minced words about the greater transparency and changes he wants to see at Cracker Barrel; and he has failed so far to obtain seats on the board of directors.

That's where the story starts to get interesting. In previous columns I've discussed the fact that Biglari Holdings' Cracker Barrel stake represents a large portion of the company's market cap; and that number continues to rise. As of yesterday's close, Biglari Holdings, which has a $472 million market cap, owned $372 million worth of Cracker Barrel. Quite interestingly, Cracker Barrel shares have risen more than 40% over the past year, and are trading at an all-time high. Meanwhile, Biglari Holdings shares are down 5% during the same period. And it's not as if Biglari obtained all of its' CBRL stake, over the past year; at this time last year, it already owned about 14.5% of the company, worth about $190 million. BH Chart BH data by YCharts
CBRL Chart CBRL data by YCharts

Without a doubt, price performance of Biglari shares has been disappointing the past couple of years. It tells me that the company may be either misunderstood, underfollowed or both. The fact that it trades for nearly $400 a share may not help matters, either. The company had been pursuing a dual share class structure, with the prospect of a lower priced/lower voting rights Class B share, but has delayed the actual shareholder vote twice. A special meeting on the issue set for December was canceled and it's been crickets on the issue ever since.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BH $373.94 -0.79%
CBRL $146.45 -0.70%
AAPL $93.75 -1.10%
FB $117.53 0.69%
GOOG $693.00 0.29%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs