Investing

Aim.to (Aeroplan)

  • Last Updated:
  • Jan 11th, 2019 5:20 pm
Tags:
None
Deal Expert
User avatar
Apr 21, 2004
47557 posts
13243 upvotes
magmadragon wrote:
Aug 15th, 2018 2:14 pm
Was that not 2 weeks ago?
particular news only affects this stock for a week?

brilliant observation!
Deal Addict
Apr 25, 2006
4855 posts
463 upvotes
And the aimia sauga ends with them getting bought out. What a ridiculous story from $8 to $1.50 back to $4

These guys still owe me like $3k in dividends back in may 2017. Are they gonna cough it up? I doubt it...
"If you make a mistake but then change your ways, it is like never having made a mistake at all" - Confucius
Deal Expert
User avatar
Apr 21, 2004
47557 posts
13243 upvotes
I wonder if we still have until June 2020 to redeem aeroplan miles for flights or will they be diluted almost immediately.
Deal Expert
User avatar
Apr 21, 2004
47557 posts
13243 upvotes
Outside this consortium, Aimia wasn't worth much.

Too baf for long term shareholders.
Deal Fanatic
User avatar
Oct 9, 2008
5279 posts
1770 upvotes
Thornhill
alanbrenton wrote:
Aug 21st, 2018 8:29 am
I wonder if we still have until June 2020 to redeem aeroplan miles for flights or will they be diluted almost immediately.
You have nothing to gain by holding point until June 2020 imo but the odds of dilution is of course there. If I had any Aeroplan pts I would redeem ASAP.
Deal Fanatic
Feb 15, 2006
7609 posts
2016 upvotes
Toronto
Sweet. Took another gamble, a big chunk around $3.7.

Nice profit at the opening today.
Deal Addict
User avatar
Jan 16, 2011
2783 posts
1764 upvotes
The NORTH
Sold everything on the news today. Sell orders went through at $4.50 so my $80k original investment last May paid me out $200k, 250% increase in 15 months. I think I owe @alanbrenton a drink, if not for them I would have sold at $3.80 and missed $31k in profit.

I believe there is more room to move up but at this point with Aeroplan gone I have no interest in investing in this company, what is the next step?
Deal Expert
User avatar
Apr 21, 2004
47557 posts
13243 upvotes
How did I help beside push you to go through the thread again? With so much liability, AIM would be hard pressed to find any other buyer.

TD and CIBC probably want in on the new Air Canada rewards program so they had to join the buy out.

I hope it was in a registered account but hey, no problems paying the CRA some chump change if you used your margin/cash account. Congratulations. :)
Last edited by alanbrenton on Aug 21st, 2018 10:43 am, edited 1 time in total.
Deal Addict
User avatar
Jan 16, 2011
2783 posts
1764 upvotes
The NORTH
alanbrenton wrote:
Aug 21st, 2018 10:38 am
How did I help beside push you to go through the thread again? With so much liability, AIM would be hard pressed to find any other buyer.

TD and CIBC probably want in on the new Air Canada rewards program so they had to join the buy out.

I hope it was in a registered account but hey, no problems paying the CRA some chump change if you used your margin/cash account. Congratulations. :)
35% TFSA / 65% RRSP.

You did give me a nudge, I was worried about the liability but after re-reading I realized that the liabilities were not the boggy man that they were painted as. If they were, there would have been an uptick in redemption or some material change in Canadians habits. That didn't happen over the year since AC announced the end to the partnership. Its not the same as a cash debt, or a bond, those are set liabilities. Points redemption's have to assume 100% redemption and 0 breakage and those don't happen. AIM was still making more money each quarter than they were paying out and there was no reason to believe that would have changed. But all that is in the past.

Again, thank you. You did give me a nudge in the direction of profit.
Deal Expert
User avatar
Apr 21, 2004
47557 posts
13243 upvotes
kr0zet wrote:
Aug 21st, 2018 11:05 am
35% TFSA / 65% RRSP.

You did give me a nudge, I was worried about the liability but after re-reading I realized that the liabilities were not the boggy man that they were painted as. If they were, there would have been an uptick in redemption or some material change in Canadians habits. That didn't happen over the year since AC announced the end to the partnership. Its not the same as a cash debt, or a bond, those are set liabilities. Points redemption's have to assume 100% redemption and 0 breakage and those don't happen. AIM was still making more money each quarter than they were paying out and there was no reason to believe that would have changed. But all that is in the past.

Again, thank you. You did give me a nudge in the direction of profit.
I think you are fortunate the Air Canada put in an offer. I'm sure you had anticipated that too.

No way were the new partnerships more valuable than the AC partnership that was ending in June 2020.

I think if more people started redeeming points for aeroplan, AIM's fate would have been a lot different.

Even if liabilities were not $1.9b, it would have been still at least $1b, taking into account >100% redemption and >0 breakage.

Why sell at $450m if AIM thinks it's worth a lot higher from another offer? There will be no other offer. Win-win for new shareholders and Air Canada consortium. One less competitor around in 2020.

Top