Joe Lucid

Arbitrage Opportunity: Western Sizzlin/Steak 'n Shake Pair Trade

MC, the problem is that the SNS stake has declined in value quite substantially since end of 2007 for another ~$3M in investment losses net of tax which will be reported for Q1. The Q1 report will look much worse than the 10-k with a substantial overall loss. Putting everything together and still assuming $20M business value for the operating business I get about $12 in intrinsic value.

I'd be hesitant though to say that the operating business is still worth $20M. Will be interesting to see the revenue numbers for q1.