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Aim.to (Aeroplan)

  • Last Updated:
  • Aug 16th, 2017 1:28 pm
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Oct 9, 2008
3913 posts
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Thornhill
1xTiMeR wrote:
Aug 9th, 2017 8:41 pm
2017 guidance is maintained sounds like great news considering these estimates were given prior to AC departure news or am I interpreting it incorrectly?
Sounds about right, no shocks in this ER. There was however mention that the dividend on common shares have been suspended to provide financial flexibility. Previously they were deferred due to capital impairment test but now they've decided to suspend it to preserve their balance sheet.
Deal Fanatic
Feb 1, 2006
9198 posts
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Sold my 2000 shares at $1.98. Tempted to wait for a bigger pop in future, but happy with a $540 gain (16%) for a few weeks wait. Just my play money, small portion of my portfolio.
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Feb 26, 2008
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Jeenyus1 wrote:
Aug 10th, 2017 9:25 am
Sounds about right, no shocks in this ER. There was however mention that the dividend on common shares have been suspended to provide financial flexibility. Previously they were deferred due to capital impairment test but now they've decided to suspend it to preserve their balance sheet.

And I noticed that there was a little note which observed that there is no guaranty that the dividend will ever be re-instated. On that point, I would agree. They have about $450m of cash debt (by this I mean debt that is denominated in dollars as opposed to the $3b of promises to Aeroplan mile holders that are denominated in pixie dust and unicorn horns), and it'll probably take about two years of FCF plus some of their outstanding cash to work this down. I can't imagine that their banker would be in a hurry to extend their $300m revolving credit line at this point...
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Jun 26, 2011
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Bullseye wrote:
Aug 10th, 2017 9:56 am
Sold my 2000 shares at $1.98. Tempted to wait for a bigger pop in future, but happy with a $540 gain (16%) for a few weeks wait. Just my play money, small portion of my portfolio.
Was tempted to do the same and exit on the pop this morning but I'm on the fence
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Jan 16, 2011
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Sold out of 44500 shares today in my rrsp, average cost was $1.66 and put my sell order at $2.00 before hitting the gym this morning. Was shocked that my sell order was filled and a little worried that I might miss more upside.

Still hold 20500 shares in my TFSA with an average of $2.14 and will see how this trends over the next few months.
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Sep 19, 2004
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Waterloo
kr0zet wrote:
Aug 10th, 2017 11:50 am
Sold out of 44500 shares today in my rrsp, average cost was $1.66 and put my sell order at $2.00 before hitting the gym this morning. Was shocked that my sell order was filled and a little worried that I might miss more upside.

Still hold 20500 shares in my TFSA with an average of $2.14 and will see how this trends over the next few months.
Congrats, that's $15K gain in your RRSP, brave men for putting $75K into AIM
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Mar 27, 2008
1263 posts
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Toronto
lots more upside potential to come in the next few quarters.
My Rogers Plan: 250 DT, Unlim. inc., Unlim. E/W @ 8pm, 100 CDN LD, 100 txt sent/unlim. rec., CID/VM/Call forward & transfer = $15.90/month after all tax and fees.
Sr. Member
Jun 20, 2010
591 posts
220 upvotes
I wonder if analysts would give this an upgrade since points run did not materialize post-AC announcement.
Newbie
Oct 1, 2011
50 posts
4 upvotes
Sold a third of my position this morning to lessen my exposure in case things go bad again, but I'm going to wait patiently to see what cost-cutting measures do to the bottom line in Q3 & Q4. Dividend suspension is not good but totally expected. I'm not confident in a big partnership announcement anytime soon, but if it happens I think we will wish we had all our shares still.
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Dec 8, 2010
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mikerfd wrote:
Aug 10th, 2017 2:23 pm
Sold a third of my position this morning to lessen my exposure in case things go bad again, but I'm going to wait patiently to see what cost-cutting measures do to the bottom line in Q3 & Q4. Dividend suspension is not good but totally expected. I'm not confident in a big partnership announcement anytime soon, but if it happens I think we will wish we had all our shares still.
Same, sold 15%. Still in the red, but with a bit less risk. Not planning on selling any more now.
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Nov 9, 2013
1729 posts
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Edmonton, AB
If they aren't going to pay a dividend on the prefs they should just redeem them (says the pref holder).
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Mar 27, 2008
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treva84 wrote:
Aug 10th, 2017 6:55 pm
If they aren't going to pay a dividend on the prefs they should just redeem them (says the pref holder).
your dividend on the pref are still accumulating now unless something major happens.
My Rogers Plan: 250 DT, Unlim. inc., Unlim. E/W @ 8pm, 100 CDN LD, 100 txt sent/unlim. rec., CID/VM/Call forward & transfer = $15.90/month after all tax and fees.
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Nov 9, 2013
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Edmonton, AB
ykshum wrote:
Aug 10th, 2017 11:47 pm
your dividend on the pref are still accumulating now unless something major happens.
I know (they are cumulative) but still!
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Dec 11, 2005
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ykshum wrote:
Aug 10th, 2017 11:47 pm
your dividend on the pref are still accumulating now unless something major happens.

Unless Air Canada changes course or buys AIM outright, anyone that thinks that AIM is not going to go bankrupt shortly after 2020 is living in a reality distortion field. There is no possible way they are going to survive. They don't have nearly enough partners to compete with Air Miles, and consumers and companies in general are gravitating AWAY from cross-brand loyalty programs like AIr Miles in general (consumers because they prefer to save a buck then get points, and companies because it is a lot cheaper now to run your own mobile / digital loyalty program than contract it out to companies like Amia).

The only reason anyone should be looking at this stock right now is to short it.
To be nobody but yourself - in a world which is doing its best, night and day, to make you everybody else - means to fight the hardest battle which any human being can fight; and never stop fighting. -- E. E. Cummings

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