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Aim.to (Aeroplan)

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  • Nov 13th, 2017 3:38 pm
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May 25, 2008
1141 posts
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Mississauga
daverobev wrote:
Nov 9th, 2017 11:42 am
Hmm, down 4 1/2% at the moment.

They have loads of cash. I don't get why they don't pay out the dividends they owe. I don't get this impairment thing. It is not 'their money' - it should be paid out to shareholders. Suspending ongoing dividends sure, that's fine, totally allowable.

Where do accumulated pref share divis fall in the case of bankruptcy? They are doing this presumably to keep the bondholders happy (ie, unpaid out accumulated divis would go to bondholders in bankruptcy rather than pref share holders?).
have a look at page 28 of the latest financial report: https://www.aimia.com/content/dam/aimia ... tes-EN.pdf
Ahead of the prefs are i) 200 million drawn from a bank line of credit (I believe used to pay the 2018 bonds) expiring 2020 and ii) 250 mil secured bonds expiring 2019. If AIM goes bankrupt now, the prefs will get nothing, and that includes the pref dividends, because these two items are ahead in seniority. However, if cash flow stays the same then the debt eventually gets paid off then the prefs are the next in line. This is why its important for AIM not to pay the common dividend, with so much uncertainty, they must conserve to service the debt until things get better. If bankruptcy happens well into the future (past 2020) then I believe the prefs could be made whole, as they are essentially the owners of AIM after paying off the bonds and line of credit.
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Dec 8, 2010
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STP123 wrote:
Nov 9th, 2017 12:41 pm
have a look at page 28 of the latest financial report: https://www.aimia.com/content/dam/aimia ... tes-EN.pdf
Ahead of the prefs are i) 200 million drawn from a bank line of credit (I believe used to pay the 2018 bonds) expiring 2020 and ii) 250 mil secured bonds expiring 2019. If AIM goes bankrupt now, the prefs will get nothing, and that includes the pref dividends, because these two items are ahead in seniority. However, if cash flow stays the same then the debt eventually gets paid off then the prefs are the next in line. This is why its important for AIM not to pay the common dividend, with so much uncertainty, they must conserve to service the debt until things get better. If bankruptcy happens well into the future (past 2020) then I believe the prefs could be made whole, as they are essentially the owners of AIM after paying off the bonds and line of credit.
Mm. But, other companies also carry debt, no? And still pay out on things?

I guess it's all about the AC contract expiration. When there is clarity on that, they can behave like a normal indebted company again.
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May 25, 2008
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Mississauga
daverobev wrote:
Nov 9th, 2017 2:02 pm
Mm. But, other companies also carry debt, no? And still pay out on things?

I guess it's all about the AC contract expiration. When there is clarity on that, they can behave like a normal indebted company again.
yes, I agree...the suspension of the pref dividend while operating with the cash position they have is highly unusual. The 2019 bonds are actually trading above par, pointing to no immediate liquidity concerns. Once they have the clarity, they should operate like normal.
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Nov 10, 2007
201 posts
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White Comet wrote:
Nov 9th, 2017 2:44 pm
+5% now lol
This is why I'm not a stock trading guru lol. In any case I'm still in the hole from months earlier, but it's getting better little by little.
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Oct 9, 2008
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Thornhill
magmadragon wrote:
Nov 9th, 2017 3:55 pm
This is why I'm not a stock trading guru lol. In any case I'm still in the hole from months earlier, but it's getting better little by little.
I plan on selling only when the 'big kahuna' news is announced (hopefully) - https://www.thestar.com/business/2017/1 ... anada.html

For those that bought after the big decline, time is on our side.
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Jan 16, 2011
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The NORTH
What a whacky day yesterday. Premarket today is all over the place. This morning it was holding at a bid/ask of $2.60 all be it with a bid/ask size of 100/5600. Now it's at $2.90 with a million shares for sale. That'll be a hell of a brick wall to push through...
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Jan 16, 2011
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The NORTH
Never mind.... 3/4 of a million shares in 2 minutes and we're through $3

WTF?!?!
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May 25, 2008
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kr0zet wrote:
Nov 10th, 2017 9:33 am
Never mind.... 3/4 of a million shares in 2 minutes and we're through $3

WTF?!?!
It went through that wall like swiss cheese. Shorts getting burned?
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STP123 wrote:
Nov 10th, 2017 9:45 am
It went through that wall like swiss cheese. Shorts getting burned?
Heck if I know... But we're now up 23 cents to $3.03 with 1.4 million shares.


And the thing that bugs me the most? I've bitched about it before. TD doesn't have AIM listed in their market movers!!!! Seriously, what the hell is up with that? Everytime they are in the top 3 for percent gainers TD acts like they don't exist. Other sites list it, other brokerages list it but Waterhouse? Of course not....
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Jul 22, 2004
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ETOBICOKE
decided to sell out at 3.07. Good luck to all!
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Apr 5, 2009
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I sold yesterday.... oh well... win some/lose some, bought in sub $2 so still good.

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