Aimia Inc T.AIM.PR.D

"Shareholders Lose Opportunity"

[AIMIATURD69]

I wouldn't descirbe it as Premium, Mythaq.

More like:


Flimsy, Uninformed, Cheap,Kerbstone, Yokel, Oafish, Useless.

Go away. You're more undignified than our current board.

[nedstar71]

As I said, not all that bright.  I think at this point egos have taken over.  They're now stuck with a huge position in a company that isn't what they originally wanted, and are unwilling to pay up what it would take to buy it entirely.  I don't get the impression their AGM moves will amount to anything this year either.  At 28-30% they already own all the pro

[nkbourbaki]

Unfortunately it looks like there won't be a timely resolution to this mess. Results from last AGM can be seen here: https://services.cds.ca/docs_csn/03521541-00000001-00027127-y%40%23filings%23livework%23wkout%2371557%23aimia_VR-PDF.pdf I think there were roughly 84m shares outstanding at the time, so just under 60% of shares were voted.  If engagement remains similar this year, then

[luscar99]

I don't understand why people assume their shares are worth more than Mithaq's offer when clearly The Market doesn't believe so. Is not like AIM's management has some amazing track record of generating shareholder value.

[Hadituptohere]

I must agree. A spectacular failure by all decision makers.  . 

[nedstar71]

I don't think many do believe the shares are worth more than Mithaq's offer.  I certainly don't.  The company is a tangled mess imo, and it's to the point it can't really be unwound. That being said, most are underwater on this and $3.66 doesn't even make them close to whole so I'd guess many are willing to chance that management can turn the ship around

[luscar99]

You're saying many are willing to rather see their investment go to zero over the next couple of years (the most likely outcome based on management's track record) than take the $3.66 offer ? That doesn't seem like a rational position. While 140k shares traded on Friday way below the offer price.

[nedstar71]

What scenario do you see that would result in  this going to zero?  It's not like they're overrun with debt.  And, the management that made the company into the mess it is are no longer running things.  Given the financial situation and assets I'd say zero is unlikely.

[luscar99]

Is the Board (who enabled the previous management) different ? Was a better management brought in ? Is this company cashflow positive ? Are the investments sound and recession-proof ? Over the years I've seen plenty companies that at some point had no debt being run into the ground by inept management and bad luck. And it doesn't need to go bk. Is owning a pennystock two years from now

[nedstar71]

Yes  the chairman of the board  and another director, both recent investors in the company are different.  They were likely the driving force behind finally getting rid of Mittleman. A search for a new "operations focused CEO" is apparently ongoing. Cash flow positive?  Aimia deals in EBITDA, as interest and taxes are just silly inconveniences.  You should know

[luscar99]

So ...most of the management is the same. There is no CEO. And the previous CEO must have been not "operations focused". They don't care about positive cashflow. BV and NAV keep going down. Their investments don't seem to be recession resilient. With all these positives it's surprising the Market isn't willing to give the shares a higher valuation than 13% under the

[nedstar71]

"Sadly I see absolutely no reason for Mithaq coming back with a higher offer." You could be right.  Mithaq is now stuck with a huge position with no influence, seen as a joke and has no place to go. Dump at a loss?  Possibly but good luck with that many shares. $3.66 was never going to cut it of course, whether the company is worth that or not.  That was obvious the day

[luscar99]

Mithaq could continue to accumulate shares on the open market. Opportunities will be plenty. We're due for a large correction, if not for an outright depression. However, I think the best path forward for the current investors - since they seem to believe this company is financially sound and resilient - is to sell the common shares and buy the prefs. For example AIM.PR.C will reset in March

[luscar99]

AIM.PR.C resetting on March 1st means 10.8% dividend for the next 5 years. If converted to floating it means 12.8% dividend for 3 months and changing dependent on Canada's 3 month treasury yield (currently at 5%). That sounds good to me.