A 40% Yield on the Horizon?

Presentation by the CEO indicates substantial return of capital may be coming sooner than expected

The CEO of the company featured in the latest Bison Insight, backed by billionaire insiders and positioned to benefit from favorable legislative changes in California, spoke at a recent conference. He provided an in-depth operational update and new guidance that suggests the company is closer to initiating capital returns than Josh previously expected.

Based on the company’s current market cap, a full shift from debt repayment to dividends would translate into a yield of about 40% annually, after accounting for lower interest costs from reduced debt. While in practice the company will likely split free cash flow between dividends and continued debt reduction, this illustrative scenario underscores how much cash the company is generating relative to its current market capitalization, and how a shift to capital returns could serve as a powerful re-rating catalyst for the stock.