Aug. 3 at 4:05 PM
$BRSL Tomorrow will be interesting. I am surprised at the lack of interest here, particularly at these levels. Short volume increased significantly in the past weeks. I wouldn't be surprised if short interest was over 10M shares. A bad Q is likely priced in at this point. Barring a total disaster, I think we close green tomorrow regardless. The company should be poised for a strong second half; add in some sort of corporate development and we might get some legs tomorrow. Consider this, BRSL pays out ~
$175M in annual dividends, plus they are buying back about
$150M worth of stock each year. For a company generating
$500M in FCF, they could comfortably add another
$175M to the pot, suspend the dividend and buy back
$500M worth of stock annually. BTW, that equates to 50M shares per year or nearly 40% of the company PER YEAR. I'm not saying they will do that, I'm just outlining the value proposition. Since we're discussing corporate developments, firing Sandusky would also be a plus.
