Comments on: Adding Western Sizzlin http://www.fatpitchfinancials.com/706/adding-western-sizzlin/ Special situation stocks and value investing Fri, 29 Aug 2008 21:16:53 +0000 http://wordpress.org/?v=2.6.1 By: Valuing Western Sizzlin - Fat Pitch Financials http://www.fatpitchfinancials.com/706/adding-western-sizzlin/#comment-182401 Valuing Western Sizzlin - Fat Pitch Financials Thu, 13 Dec 2007 04:57:53 +0000 http://www.fatpitchfinancials.com/706/adding-western-sizzlin/#comment-182401 [...] the final results of its rights offering. As was discussed in my post announcing that I was buying Western Sizzlin for the Fat Pitch Financials Portfolio, Sardar Biglari issued 898,875 new shares of WSZL through [...] [...] the final results of its rights offering. As was discussed in my post announcing that I was buying Western Sizzlin for the Fat Pitch Financials Portfolio, Sardar Biglari issued 898,875 new shares of WSZL through [...]

]]> By: George http://www.fatpitchfinancials.com/706/adding-western-sizzlin/#comment-179265 George Tue, 04 Dec 2007 17:55:57 +0000 http://www.fatpitchfinancials.com/706/adding-western-sizzlin/#comment-179265 Kevin - I chose WSZL over SNS because Western Sizzlin has the competitive advantage of top quality management that knows efficient capital allocation, Sardar Biglari. SNS has no such capability. If Biglari cannot effect change at SNS, I don't wouldn't want to remain a holder of its business but I would still be interested in WSZL. WSZL has a future beyond this particular situation. Kevin - I chose WSZL over SNS because Western Sizzlin has the competitive advantage of top quality management that knows efficient capital allocation, Sardar Biglari. SNS has no such capability.

If Biglari cannot effect change at SNS, I don’t wouldn’t want to remain a holder of its business but I would still be interested in WSZL. WSZL has a future beyond this particular situation.

]]> By: November Performance for the Fat Pitch Financials Portfolio - Fat Pitch Financials http://www.fatpitchfinancials.com/706/adding-western-sizzlin/#comment-179087 November Performance for the Fat Pitch Financials Portfolio - Fat Pitch Financials Tue, 04 Dec 2007 04:36:09 +0000 http://www.fatpitchfinancials.com/706/adding-western-sizzlin/#comment-179087 [...] best performing position this month was Western Sizzlin (WSZL).  I’m already up 17.64% and I’ve only had this stock for a couple of weeks. [...] [...] best performing position this month was Western Sizzlin (WSZL).  I’m already up 17.64% and I’ve only had this stock for a couple of weeks. [...]

]]> By: Kevin http://www.fatpitchfinancials.com/706/adding-western-sizzlin/#comment-178709 Kevin Sun, 02 Dec 2007 20:36:58 +0000 http://www.fatpitchfinancials.com/706/adding-western-sizzlin/#comment-178709 George, instead of buying WSZL, why not just buy SNS? George, instead of buying WSZL, why not just buy SNS?

]]> By: sdesai http://www.fatpitchfinancials.com/706/adding-western-sizzlin/#comment-176967 sdesai Tue, 27 Nov 2007 15:06:40 +0000 http://www.fatpitchfinancials.com/706/adding-western-sizzlin/#comment-176967 thanks for the answer George! two more questions.What is the growth rate and discount rate you are assuming if you are doing DCF calculation? thanks for the answer George! two more questions.What is the growth rate and discount rate you are assuming if you are doing DCF calculation?

]]> By: George http://www.fatpitchfinancials.com/706/adding-western-sizzlin/#comment-176948 George Tue, 27 Nov 2007 13:32:47 +0000 http://www.fatpitchfinancials.com/706/adding-western-sizzlin/#comment-176948 The number of Western Sizzlin shares after the rights offering should equal the number of shares prior to the offering, 1,797,750 shares, plus the number of shares issued for the rights offering, 898,875. Therefore, the total number of shares now should be 2,696,625. I don't believe the rights offering was extended past November 16th. Shares were to be issued in 7 to 10 days ofter the expiration of the offering, so I believe that by now the new shares have been issued. I know some brokers are slow to get shares after rights offerings so it might take a few more days for all the people that took advantage of the rights offering to receive shares. I was actually a bit surprised to see that shares of Western Sizzlin traded up in price significantly yesterday. Maybe some hedged positions (shorted shares) were covered since the offering is now over. Anyone have any other theories? The number of Western Sizzlin shares after the rights offering should equal the number of shares prior to the offering, 1,797,750 shares, plus the number of shares issued for the rights offering, 898,875. Therefore, the total number of shares now should be 2,696,625. I don’t believe the rights offering was extended past November 16th. Shares were to be issued in 7 to 10 days ofter the expiration of the offering, so I believe that by now the new shares have been issued. I know some brokers are slow to get shares after rights offerings so it might take a few more days for all the people that took advantage of the rights offering to receive shares. I was actually a bit surprised to see that shares of Western Sizzlin traded up in price significantly yesterday. Maybe some hedged positions (shorted shares) were covered since the offering is now over. Anyone have any other theories?

]]> By: sdesai http://www.fatpitchfinancials.com/706/adding-western-sizzlin/#comment-175615 sdesai Fri, 23 Nov 2007 18:16:43 +0000 http://www.fatpitchfinancials.com/706/adding-western-sizzlin/#comment-175615 Hi George, How is the company capital structure changes now with rights given?i.e. how many stocks should I count now with this rights?898,875+1,797,750 or just 1,797,750. I let go the chance of ownership last year(damn!)when it was around 8$ due to this rights offering(my thinking was Mr.sardar is trying to dilute the current owners impostering as buffett follower, but after reading and seeing him acting in favor of all stakeholders I proved to be dead wrong in my understanding!). Thanks, Sanket Desai. Hi George,
How is the company capital structure changes now with rights given?i.e. how many stocks should I count now with this rights?898,875+1,797,750 or just 1,797,750.
I let go the chance of ownership last year(damn!)when it was around 8$ due to this rights offering(my thinking was Mr.sardar is trying to dilute the current owners impostering as buffett follower, but after reading and seeing him acting in favor of all stakeholders I proved to be dead wrong in my understanding!).
Thanks,
Sanket Desai.

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