Maybe 1 million dollars isn’t what it used to be, but it’s more than enough to meet the “put your money where your mouth is” standard. That’s precisely what Steak n Shake Co. (SNS) CEO, Sardar Biglari did between August 19th and 21st. Would you, no matter how much money you have, invest $1,000,000 in anything if you weren’t convinced of the merits?

The Wall Street Journal calls Mr. Biglari an activist CEO. We did our own research and found that the man has a pretty good history with underperforming restaurant stocks. The Steak n Shake Company engages in the ownership, operation, and franchising of full service, casual dining restaurants in the United States.

He made a similar old fashioned hostile takeover of Friendly restaurants and doubled his money in less than a year. And the stock share price of Western Sizzlin Corporation returned over 50% following his placement at the top. Those are some impressive numbers and success like that is hard to ignore.

While Mr. Biglari’s track record is impressive, SNS’s fundaments aren’t. That’s what he plans on changing. Already analysts are boosting their earnings expectations. Two of the three analysts coving Steak n Shake have lifted their outlook for this quarter and the rest of the year. In fact they are predicting more than 100% earnings growth this year and next.

Point & figure charts say the stock price is expected to grow too. The point & figure analysis shows a traditional 3 box reversal and has a bullish price objective of $26.5. We also see a positive MACD crossover on the stock chart and our technical analysis points to a possible new 52 week high in the weeks ahead. If it breaks and closes above $11.75, then $13.50 to $14 is up next.

Suggested Closing Price Stop: $10.22