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
TheStreet Open House

The Biggest Small-Cap Stock You Don't Know

NEW YORK ( TheStreet) -- First, I must add my voice crying out to the stock market pantheon. In the immortal words of the late Louis Rukeyser, "Won't one of the market gods give us a good buying opportunity with a good, old-fashioned, orderly correction?"

Now that I've gotten that out of the way, let me introduce today's "mystery company," Biglari Holdings (BH), which I affectionately call Big Larry. It reminds me of a man I worked with when I was just a teen. He was 5 feet, 4 inches tall but, boy, could he play the roles of men twice his size.

We called him Big Larry because he could hold down more jobs and have his fingers in more pies than an overachieving octopus. That's the way I see BH, which reports its first-quarter 2013 earnings on Monday at a yet undisclosed time.

Big Larry's stunningly simplistic Web site is a must-read for all interested parties.

On the home page it states with laconic clarity, "Biglari Holdings is a diversified holding company. All major operating, investment and capital allocation decisions are made for the company and its subsidiaries by Sardar Biglari, chairman and chief executive officer."

Talk about straight, direct and to the point. Mr. Biglari (aka Big Larry) must have been the one to see the opportunities in the restaurant business. That's why he started buying chains including Steak n Shake, a classic American brand serving premium burgers and milk shakes, and Western Sizzlin, which offers signature steak dishes and other classic American menu items.

He also jumped into other eat-out concepts such as Great American Steak & Buffet and Wood Grill Buffet consisting of hot and cold buffet-style dining. During the past year Big Larry bought large blocks of shares of Cracker Barrel Old Country Store (CBRL).


CBRL pays a $2-per-share dividend. As of the end of 2012, BH and its CEO owned nearly 20% of the outstanding shares of Cracker Barrel. That means CEO "Big Larry" and his company will be raking in nearly $9 million in dividends in 2013 alone. As you can see from the chart below, Big Larry has seen some nice unrealized capital gains as well over the past year with CBRL.

CBRL Chart CBRL data by YCharts

Holy owned holdings! Big Larry's shares of CBRL are up almost 31% in 2013 so far. CBRL announces its earnings for the first quarter of 2013 on May 20. Big Larry and the other major holders will be listening with great anticipation.

Another of Big Larry's top holdings is a little property and casualty insurance company called Unico American (UNAM). As of the end of 2012, Biglari Holdings was the top institutional holder of UNAM shares, owning over 505,000 shares or roughly 9.5% of the outstanding stock.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,987.51 -61.49 -0.36%
S&P 500 1,985.54 -11.91 -0.60%
NASDAQ 4,567.5980 -24.2080 -0.53%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs