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

Hey Joe

I think I sort of see what you're doing and it seems you're assuming that for SNS price=value. I am not disagreeing w your way of looking at it, I'm probably wrong but I'm just assuming, agreeing w Biglari, that it seems sensible that there's a decent amount of value in SNS that could be freed up, ie just by making capex=depreciation for that co, that's about $30M in cash per year, saved. Whether thats a sensible figure I have no idea. So I'm not too concerned with short-term price fluctuations in SNS stock. NI has declined for that co too but I assume (bad to do that, I know) that has something to do w poor expense mgmt by the directors, though that could just be Biglari brainwashing me.

Again, this is just smoke, but the other thing is...if Biglari wanted to make a push, to oust the directors, etc, he needed a big chunk of stock, hence the dilution etc etc. Why he had to go after SNS and not some smaller cap'd co doesnt really make sense though