Investing

What did you buy? What might you buy??

  • Last Updated:
  • Jun 24th, 2018 3:48 pm
Tags:
None
Member
Jan 15, 2015
482 posts
199 upvotes
STP123 wrote:
May 16th, 2017 10:53 am
I would consider the AIM preferred shares instead (A, B or C series). There is more potential with the common, but if AIM does not find another airline partner, there is a very good chance the dividend will get cut.
Bought at close $3.15

I read your post on the dedicated AIM thread. Will probably bid on preferred next as long-term hold, with intent to sell common shares on/after ex-div date. I was gonna load up on preferreds at the bottom last Wed, but after stopping to research the A/B/C series, they had recovered half their initial dropDisappointed But Relieved Face.
Deal Addict
User avatar
May 25, 2008
1281 posts
458 upvotes
Mississauga
SAM3674 wrote:
May 16th, 2017 4:32 pm
Bought at close $3.15

I read your post on the dedicated AIM thread. Will probably bid on preferred next as long-term hold, with intent to sell common shares on/after ex-div date. I was gonna load up on preferreds at the bottom last Wed, but after stopping to research the A/B/C series, they had recovered half their initial dropDisappointed But Relieved Face.
Same here. I had a few hundred shares of AIM.PR.C at a limit of $7.60 that would have been filled if I hadn't chickened out. 20% yield. It's now around 12 or so. My understanding is that AIM prefs bottomed on a high volume of margin calls and recovered almost as quickly as they had dropped.
Deal Addict
User avatar
Dec 8, 2010
2261 posts
724 upvotes
Any thoughts on Bombardier preferreds? Or preferreds generally (or specifically, heh)?

Picked up a few AIM and AIM preferred c's, but not at the bottom. We'll see.
Deal Guru
Jun 26, 2011
10677 posts
1206 upvotes
Markham
SAM3674 wrote:
May 16th, 2017 4:32 pm
Bought at close $3.15

I read your post on the dedicated AIM thread. Will probably bid on preferred next as long-term hold, with intent to sell common shares on/after ex-div date. I was gonna load up on preferreds at the bottom last Wed, but after stopping to research the A/B/C series, they had recovered half their initial dropDisappointed But Relieved Face.
Why sell after ex dividend if that will likely be priced in the following day?

Should be interesting going forward. I'm honestly surprised that it hasn't recovered more already given that the news isn't crippling to the business plus the timeline. Wishful thinking but imagine if with Westjets expansion plans they announced a partnership with Aeroplan....this would start to run nicely. It would benefit WestJet to fill their planes as well.
Deal Addict
User avatar
May 11, 2014
2069 posts
962 upvotes
Iqaluit, NT
RolandCouch wrote:
May 16th, 2017 5:33 pm
Why sell after ex dividend if that will likely be priced in the following day?

Should be interesting going forward. I'm honestly surprised that it hasn't recovered more already given that the news isn't crippling to the business plus the timeline. Wishful thinking but imagine if with Westjets expansion plans they announced a partnership with Aeroplan....this would start to run nicely. It would benefit WestJet to fill their planes as well.
Highly doubt Westjet would buy or partner with Aimia, although that would be very interesting. Westjet already has their Westjet Dollars program so it would have to take this into factor. If Westjet truly wants to become a traditional carrier like it seems to be doing, it is one way of doing so. Their dollars program has virtually no partnerships. They are all partners but must be purchased via westjet.com so they are more partners which Westjet likely earns commissions instead. Conversion of Aeroplan into a program at Westjet with airline partnership in OneWorld or Skyteam could be an interesting development. That being said, I don't think they would do so. The cost would be higher than starting their own, although getting the partnerships that Aeroplan has with hotels, car rental and other travel services would be a big boon to Westjet. Westjet also has too much commitments to expenditures(eg. 787, new ULCC etc.), so a buyout is unlikely.
Support your local Credit Union! PM for different options available!

Sask Pension Plan Upto $6000/yr in Credit Card spending on RRSP contributions
saskatchewan-pension-plan-985264/
Deal Guru
Jun 26, 2011
10677 posts
1206 upvotes
Markham
xgbsSS wrote:
May 16th, 2017 5:53 pm
Highly doubt Westjet would buy or partner with Aimia, although that would be very interesting. Westjet already has their Westjet Dollars program so it would have to take this into factor. If Westjet truly wants to become a traditional carrier like it seems to be doing, it is one way of doing so. Conversion of Aeroplan into a program at Westjet with airline partnership in OneWorld or Skyteam could be an interesting development. That being said, I don't think they would do so. The cost would be higher than starting their own, although getting the partnerships that Aeroplan has with hotels, car rental and other travel services would be a big boon to Westjet. Westjet also has too much commitments to expenditures(eg. 787, new ULCC etc.), so a buyout is unlikely.
Just to clarify in case I was unclear, I don't believe in any posts I suggested a buyout. I was just saying that a partnership - for example WestJet allowing Aeroplan miles to be converted and used on their flights would be big.
Deal Addict
User avatar
May 11, 2014
2069 posts
962 upvotes
Iqaluit, NT
RolandCouch wrote:
May 16th, 2017 5:59 pm
Just to clarify in case I was unclear, I don't believe in any posts I suggested a buyout. I was just saying that a partnership - for example WestJet allowing Aeroplan miles to be converted and used on their flights would be big.
I read your post. I know you didn't say buyout. My thinking though is that If Westjet wanted to partner with Aeroplan, they would rather buy it out and control the revenue. That is precisely why Air Canada is abandoning it. Hence why I mention buy out because ultimately, they would rather want to profit from the miles and not have to pay it out as a cost. The mere fact that Westjet has so many expenditures coming up would be a reason why I don't think a partnership would be made.

If anything, Westjet would start it from scratch, even though the immediate benefits would exist to partner with Aeroplan right away. There is still 3 years that Aeroplan has to continue partnering with Air Canada which gives plenty of time for Westjet to further develop their own program. And because of that contract, I think it would be impossible for a partnership to be announced before that time. I think that Westjet would work toward becoming a new member in Oneworld or Skyteam through their own program in 2020 with the introduction of the 787.
Support your local Credit Union! PM for different options available!

Sask Pension Plan Upto $6000/yr in Credit Card spending on RRSP contributions
saskatchewan-pension-plan-985264/
Member
Jan 15, 2015
482 posts
199 upvotes
RolandCouch wrote:
May 16th, 2017 5:33 pm
Why sell after ex dividend if that will likely be priced in the following day?

Should be interesting going forward. I'm honestly surprised that it hasn't recovered more already given that the news isn't crippling to the business plus the timeline. Wishful thinking but imagine if with Westjets expansion plans they announced a partnership with Aeroplan....this would start to run nicely. It would benefit WestJet to fill their planes as well.
Funny thing I observed lately is when stocks gap down days or weeks before the ex-div date, many people forget to price in the dividend or just aren't aware you need to buy at least one day before (record date usually 2 days after ex-div, settlement date is 3 business days - to be a buyer on record, purchase one day before ex-div). As a seller you can sell on ex-div to collect; as a buyer you need to buy at least one day early.

A few stocks in recent memory stayed the same, or even went up, on the ex-div date. Example are: RGR on 15-Mar-17, TUP on 16-Mar-17 (both NYSE).

I would agree that in general the average drop should roughly equal to the dividend payout, but shares sometimes even get bid up on ex-div date. For example, ACO.X on TSE had the earnings release one trading day before ex-div on 06-Mar-17, and the shares went higher. Because I buy a large number of shares, as I did with AIM, even pennies can add up for an unemployed bum like me Grinning Face With Smiling Eyes.

I would normally not consider AIM as a medium to long-term investment despite the high dividend, but with the recent drop I couldn't resist for trading purposes. As I said in another post, I read that lost AC business accounted for around 70% of free cash flow, so maybe that's why the share price hasn't recovered quickly.

I'm not a Westjet customer, but I understand they have their own frequent flyer program. It makes perfect business sense to partner with Aeroplan and realize better economies of scale - but yes, wishful thinking, unless management realizes their expansion plans need to be offset by cost-cutting elsewhere.

(Edit: after reading above posts by xgbsSS, I agree that it's unlikely to see a Westjet-Aeroplan partnership.)
Deal Addict
Jun 27, 2007
3756 posts
763 upvotes
Slf @45.5

Will add more if it gets cheaper - bot more @44.5
Last edited by dlhunter on May 16th, 2017 9:12 pm, edited 1 time in total.
After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: it never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!
Deal Addict
Feb 4, 2015
3227 posts
662 upvotes
Canada, Eh!!
Got some in VGK and VPL in investment acct; not often traded as opposed to trading acct
Deal Addict
Nov 9, 2013
2182 posts
871 upvotes
Edmonton, AB
Selling:

HCG (except for 1 share - never forget!)
WJA
Member
Dec 7, 2007
235 posts
91 upvotes
endokuken wrote:
May 17th, 2017 10:08 am
What's up with ENB tanking even more?
Well - the markets are getting fist pumped today and pretty much everything is taking a beating.
Sr. Member
Feb 26, 2017
609 posts
250 upvotes
Bought Enb at 52.82.

I'm now out of cash so it's time to just watch for a while.
Member
Jun 28, 2016
267 posts
139 upvotes
Bought IPL at 26.55. As usual, I am very pleased when I manage to buy a good stock, get a total return of more than 15% in capital gains + dividends in less than 12 months, sell it, and then buy it back again for less in the same year. Thank you market volatility.

Top

Thread Information

There are currently 2 users viewing this thread. (2 members and 0 guests)

xbournex, kuznagi