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Aim.to (Aeroplan)

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  • Sep 18th, 2020 11:52 am
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Deal Fanatic
Feb 1, 2006
9645 posts
911 upvotes
Muskoka
kr0zet wrote: With quarterly results in 14 days.
Yes, which probably will hold no surprised. I bought 1000 AIM at $2.22 in my trading account, so pretty happy with the little win yesterday. Trying to decide if I should hold for more good news, or take my money and run. Always the tough decision with short term trades. I feel as the news spreads, there will be more gains early next week, so maybe a couple more days.
Deal Fanatic
Feb 15, 2006
9183 posts
3861 upvotes
Toronto
97gst wrote: "Within two years, miles alone or in combination with cash will be redeemable for a variety of travel, leisure and entertainment experiences, including concerts, spas and private jets."

LOL. Finally, I can cash in my 623,040,000 points!
And pay $32M in scamcharges.
Newbie
Jun 10, 2017
96 posts
132 upvotes
magmadragon wrote: That actually sounds pretty decent. Especially being able to transfer to a bunch of different programs.
This sounds like the stupidest idea ever.

With Flair, Swoop, WOW, Norwegian, there is a large number of airlines that are already out there trying to scrape the economy customers.

Think about when the highest redemption periods are... March Break, December 20-23, summer (to Europe). Where does Aeroplan think they are going to get the planes to lease for their new airline during the peak periods? If they think they can redeem enough seats to lease a plane for the entire year, great for them.

When they don't have the redemptions, Just remember that they then have a huge fixed cost, which is going to result in either a) increase in redemption costs or b) cut rate selloffs as departure date gets closer. How would you feel if you redeemed 25K miles and found the same seat for sale for $99 for the middle of the week flight to Florida during hurricane season.

Also, I hope they factored in the much lower redemption levels once the Air Canada frequent fliers bolt to the new Altitude program.
Deal Fanatic
User avatar
Jan 16, 2011
7205 posts
9238 upvotes
The NORTH
Aimia halted pending sale of Aeroplan program to Air Canada, CIBC, TD and Visa for $3.64 per share equivalent. Guess Air Canada was bluffing about thier own program all along and are concerned about the new Aeroplan vision...

Guess when the offer expires? August 2nd. The day before Aimia's next quarterly report...
Deal Addict
User avatar
Dec 8, 2010
2564 posts
992 upvotes
kr0zet wrote: Aimia halted pending sale of Aeroplan program to Air Canada, CIBC, TD and Visa for $3.64 per share equivalent. Guess Air Canada was bluffing about thier own program all along and are concerned about the new Aeroplan vision...

Guess when the offer expires? August 2nd. The day before Aimia's next quarterly report...
Sooo AC gets to buy for $3.xx, when AIM was at $9 before? Hmmm. I guess that's why any company can't have all its eggs in one basket.
Member
Oct 8, 2005
236 posts
160 upvotes
Montréal
As per the press release, Air Canada would still move forward with their new program:

Proposed Transaction would result in a positive outcome for Aimia shareholders and Aeroplan members, allowing for a smooth transition of Aeroplan members' points to Air Canada's new loyalty program launching in 2020, safeguarding their points and providing convenience and value for millions of Canadians.
Deal Fanatic
User avatar
Jan 16, 2011
7205 posts
9238 upvotes
The NORTH
daverobev wrote: Sooo AC gets to buy for $3.xx, when AIM was at $9 before? Hmmm. I guess that's why any company can't have all its eggs in one basket.
Would tend to agree, hence I never bought over $9, bought around 40k shares at $2 and sold half around $3.70 on the last run up.

Bid/Ask is already at $3.10 this morning with a million shares in the line. Looks like any shorters left are scrambling to get out.
Deal Fanatic
User avatar
Jan 16, 2011
7205 posts
9238 upvotes
The NORTH
Flsp wrote: As per the press release, Air Canada would still move forward with their new program:

Proposed Transaction would result in a positive outcome for Aimia shareholders and Aeroplan members, allowing for a smooth transition of Aeroplan members' points to Air Canada's new loyalty program launching in 2020, safeguarding their points and providing convenience and value for millions of Canadians.
Hahahahahahaha. AC is going to buy the Aeroplan name, assume 2 billion dollars in points liabilities, merge that into a new programs and roll all 5 million members into the new program? Take it easy there buddy legalization isn't for a couple more months...
Deal Fanatic
User avatar
Oct 9, 2008
5684 posts
2251 upvotes
Thornhill
kr0zet wrote: Aimia halted pending sale of Aeroplan program to Air Canada, CIBC, TD and Visa for $3.64 per share equivalent. Guess Air Canada was bluffing about thier own program all along and are concerned about the new Aeroplan vision...

Guess when the offer expires? August 2nd. The day before Aimia's next quarterly report...
High, high pressure offer. Well played by AC - pretty much forcing a sale at 60% discount..
Deal Fanatic
User avatar
Jan 16, 2011
7205 posts
9238 upvotes
The NORTH
jerryhung wrote: Is this even allowed/legal, LOL, but wow, $3.6 HOD
I'm not sure they accept... Under the old CEO, sure as the sun came up today they took the deal, they were unwinding assets in prep for this offer. Problem is that AC may have waited too long. Under middleman I don't know that it's a slam dunk...

If the quarterly numbers are good and the year is shaping up, they may not accept and release positive numbers.

Who knows...
Deal Fanatic
Feb 15, 2006
9183 posts
3861 upvotes
Toronto
It's a low blow from AC. Yes there'll be questions on whether this is even legal.

Just sold at $3.63 for a nice profit, but that was a roller coaster ride. Feeling both unhappy and happy at AC.
Deal Expert
User avatar
Apr 21, 2004
58648 posts
24637 upvotes
I think our miles will still be devalued after mid-2020, whether or not aeroplan is bought out.

If bought out, devaluation could come sooner.
Deal Addict
User avatar
Dec 8, 2010
2564 posts
992 upvotes
Arrgh wrote: It's a low blow from AC. Yes there'll be questions on whether this is even legal.

Just sold at $3.63 for a nice profit, but that was a roller coaster ride. Feeling both unhappy and happy at AC.
Sold my final batch of prefs. Man, I wish I'd kept hold of the others. Oh well.
Deal Addict
Jul 27, 2017
2180 posts
950 upvotes
daverobev wrote: Sooo AC gets to buy for $3.xx, when AIM was at $9 before? Hmmm. I guess that's why any company can't have all its eggs in one basket.
is there money to be made in AIM, if so - how would folks trade the stock/options?
Sr. Member
Apr 9, 2012
583 posts
169 upvotes
Markham
This move is like playbook out of Suits.

Air Canada probably knew they were going to do this all along. This is so unethical but their lawyers must looked over this and know it's not illegal.
Member
Nov 10, 2007
395 posts
212 upvotes
There's no way this is legal. I hope the Mittleman guys tell them to screw. This needs a much higher offer.
Sr. Member
Apr 9, 2012
583 posts
169 upvotes
Markham
They basically screwed the shareholders. They know the relationship would cause it to drop in stock price and then just turn around and buy it back.
Deal Fanatic
User avatar
Feb 19, 2010
6237 posts
2992 upvotes
Buy on rumour, sell on news. I'm out at $3.60. It's been a good day. :)
Last edited by Conquistador on Jul 25th, 2018 11:28 am, edited 1 time in total.
Deal Fanatic
Feb 15, 2006
9183 posts
3861 upvotes
Toronto
AC must be laughing. But TD and CIBC are the ones feeling a lot of heat, as they just lost a lot of value, and are uncertain they'd even be in the game with AC's new Altitude program. So it's in TD/CIBC/VISA's interest to secure something of value, and more importantly some contract with AC in the new program.

So aeropeso may be rolled into the new AC program, and it's not mentioned that it'll be 1:1. At least this will provide a firmer path forward for the ae point holders, whether they like it or not.

But it's really a low blow from AC.

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