UncleLongHair

Buying 'Em Back at Western Sizzlin'

What is WEST's intrinsic value, and why do you believe it is trading at a discount? The current share price is $12.85. Over the past two years, Biglari sold shares of WEST in rights offerings at split-adjusted prices of $14 and $17. Meanwhile, WEST's largest investment, SNS, which accounts for about 60% of WEST's book value, has declined by 50%. I think it's hard to make the case that WEST's intrinsic value has increased since the rights offering, in fact it has probably declined. Why would Biglari buy back shares that is issued only a year or two ago?