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Aim.to (Aeroplan)

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  • Sep 12th, 2019 2:15 pm
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Jan 16, 2011
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Another weird End Of Day.. 560,000 shares in one transaction at the closing bell. Half the days volume in one trade...
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Another big block traded at the end of the day yesterday, just over 400,000 shares in a single transaction ($1.7 million dollar trade) and today its up 5% to $4.41 pushing through a couple walls on 2.2 million shares when the average has been below 500k for the last few weeks. Only days above the average of 500k shares traded are days when there is an end of day big block...

AIM & AC did say they wanted this done by the end of September and my birthday is this week, LOL!

And there was news at the end of August that AIM had partnered with Petsmart to launch a new loyalty program...
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Nov 10, 2007
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Yeah I'm curious if the vote notification is going to go out this week. Air Canada may want it closed by the end of the month but no way it happens in time. But with no real news out, it's hard to say what's going on.
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magmadragon wrote:
Sep 25th, 2018 1:36 pm
Yeah I'm curious if the vote notification is going to go out this week. Air Canada may want it closed by the end of the month but no way it happens in time. But with no real news out, it's hard to say what's going on.
It's definitely weird, I have not received my prospectus for voting either. With the end of the class action lawsuit maybe AC is announcing that the DD is completed and they are looking for a specific date for the vote?

Maybe AIM has terms with PLM on the Aeromexico for a fair deal? I think the Petsmart news was just to show that PLM that they were not rolling up the carpets so they could get a better offer from them. They did the same thing with Porter/Transat/Flair to get a better (not the best) deal from AC...

But I speculate here... Who knows whats going on...
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Annnnnnd we're off to the races. Half a million shares and up 40¢, 10% on the news that air Canada and aimia entered definitive agreement. Back over $4. Gonna sell into the news today and see what happens as the dust settles. Glad a got a few thousand more shares in the last few weeks @3.74
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Feb 15, 2006
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Both TD and CIBC have secured the agreement to be the card issuer when AC launches their own new loyalty program to replace aeroplan. So holders of TD or CIBC aeroplan visa cards will continue to earn points, into the new program without having to do anything.

What's interesting is TD and CIBC are paying different amounts, in their separate announcements.

TD will pay $622-million plus applicable sales tax to Air Canada, of which $547-million ($446-million after sales and income taxes) will be recognized as an expense during the first quarter of 2019 and $75-million will be recognized as an intangible asset amortized over the loyalty agreement term, both of which are expected to be reported as items of note. In addition, TD will prepay $308-million plus applicable sales tax for the future purchase of loyalty points over a 10-year period. TD also expects to incur additional pretax costs of approximately $100-million over two years to build the functionality required to facilitate the new program. The proposed transaction is expected to reduce TD's CET1 (common equity Tier 1) ratio on close by approximately 13 basis points.

CIBC will contribute $200 million towards this transaction. We expect to recognize this amount as an expense in 2019. In addition, we will make a payment of $92 million to Air Canada, at closing, as a prepayment to be applied towards future monthly payments in respect of Aeroplan miles. We expect to recognize this prepayment as a charge in net income over the term of the new credit card agreement with Air Canada as Air Canada loyalty points are purchased.
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This purchase is costing AC nothing at all, the money for Aeroplan is coming from the banks. The liabilities for the points are also meaningless as no airline reports those points on their balance sheets. This was highway robbery for AC...
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Nov 10, 2007
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A couple interesting tidbits in Aimia's NR is the fact that the money will be used to pay off all debts and that the company might be getting out of the loyalty business.
Concurrently with and assuming closing of the transaction, Aimia will repay and terminate its existing credit facility and will defease and redeem its outstanding Senior Secured Notes.
As previously announced, Aimia's Board of Directors is actively engaged in reviewing and evaluating the company's future strategic direction, including as a leading player in loyalty management and it has formed a committee of independent directors for the purpose of receiving and considering Management recommendations.
I won't be surprised if they wind up the company.
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Oh god.... Happy I sold into the news yesterday but looking to get back into this again... The 7th or 8th time (lost count) I have sold into an uptick and bought the dip in a year and a half. I think I am addicted to this one boys, someone point me to rehab... Its gotta bite me in the backside at some point.
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jerryhung wrote:
Nov 27th, 2018 10:50 am
$4.16 HOD yday to $3.65 today LOD, typical TSX volatillity :D
Made another $25k on the last ripsaw, loaded up again today... 62250 shares @ $3.72 average (got some as low at $3.69, as high as $3.73) and this is all still using the original $40k investment from last May.

The numbers just don't make sense... Aimia has $500m cash with $300m debt. Then you add on the AC Deal @ $450m, the PLM (lets say 1/2 of what mittleman says) @ $250m, Cardlytics & Think Big & Fractal are $148m. That's over a billion in assets with 152m shares outstanding... That's almost $7 a share?!?!? I get that there is uncertainty for Aimia Post Aeroplan but if they roll up the carpets and turn off the lights there is still plenty of money to spread around. I even read that there are tax credits to be used too deffer the proceeds of the sale, its crazy cheap.

Or I could be wrong and I get burned... Guess I'll find out January of 2019. LOL
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Mittleman Brothers statement:
We have developed and shared with Aimia’s board a strategic plan for Aimia going forward that, if the Board approves, we believe would substantially enhance NAV per share and extract maximal value from the tax loss assets and other key remaining components of value. If the Board rejects our plan and decides to liquidate the remaining assets instead (which we think would be a mistake, and wrongly strand the tax loss assets), there is still nearly 100% upside from current price to our estimate of NAV, as long as fair values are attained for the remaining assets. That would be a much less than ideal outcome, but the Board will have to consider all options, and some shareholders may prefer realizing a more certain but likely smaller amount more quickly retrievable in a wind-down and liquidation. We hope that our longer term vision for reinvesting and growing the substantial remaining assets of Aimia will prevail.

Once that sale closes, January 9th, 2019, Mittleman Brothers will be the largest shareholder in a holding company that will have an NAV that we estimate at CAD 1.2B (USD 900M), most of which, CAD 700M (USD 538M) will be net cash. That does not include any value for roughly CAD 800M in tax loss carry- forwards that we estimate will be available upon closing.

We have a long history of highly successful investments in “investment vehicles” comparable to what we believe Aimia is about to become, like Leucadia National (LUK) now known as Jefferies (JEF), Zapata (ZAP), American Real Estate Partners LP (ACP) now known as Icahn Enterprises LP (IEP), Brascan Ltd. (BRSA) now known as Brookfield Asset Management (BAM), Danielson Holdings (DHC) now known as Covanta (CVA), Kinnevik AB (KINVB SS), and Harbinger Group (HRG) now known as Spectrum Brands (SPB). We also own shares of other investment vehicles from which we’ve yet to see gains such as Jardine Strategic (JS SP), First Pacific (142 HK), and HC2 Holdings (HCHC), all of which we think are worth roughly double their current prices.

We believe that Aimia has many of the characteristics that made those prior investment vehicles such successful investments for us, except this time, with Mittleman Brothers controlling nearly an 18% stake in Aimia and with two of our nominated representatives on the Board, we should have substantial influence on the mission-critical capital allocation decisions that the company will face immediately after Aeroplan is sold.

Regardless, we believe that our involvement as activist investors with Aimia has already saved the company hundreds of millions in cash value that would have otherwise been lost had we not interceded when we did earlier this year. So even if we’re not afforded the opportunity to do more with those assets that we helped salvage, we’re proud of the accomplishment our efforts have produced thus far.
I know how stupid it is to not take anything off the table and to have 2/3rds of my portfolio in one company. I know it's stupid to get emotionally invested in a company but I'm looking to get an additional 4k to 7k shares if this slips to $3.50 or below...
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Nov 10, 2007
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I'm with you on this. Even if they liquidate, this seems like way too easy money. What am I missing from all of this.
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Well, I sold some CJR.B (yay, capital losses...), and bought a few of these instead. It'd be nice to offset the losses :P
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bought another 2750 shares for $3.50 yesterday. I might be able to squeeze another 1000 shares today but then Im out of capital and will be looking at Feb '19 calls but there is no action yet...

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