RE:Any thoughts on that article?First don't listen to Motley Fool. These guys are a marketing company trying to make you buy their BS service that no one really care about. To give you an idea about just how much BullShh!t the try to shovel down your throat try to sit through one of their video sales pitch about the top 3 stock, of the yearly stock BS. It will be a great test of patience... They are scammers that try to play both side of the game. I feel like if you serched for Aimia article about 5-6 months ago it will have articles about it the best stock to buy. So be careful about this site.
That said this article is written by someone that just doesn't quite understand the company.
Liquidity: they are preserving in order to have some cash to re-invent themselve. It is the right course of action based on known details. This is a good thing! they have alot of cash on hand and last quarter we havent seen a run on redemption. The idea that ppl can just redeem in order to not lose points is a rediculous one. Most ppl will plan a vacation THEN look at if points can help them reduce the cost. They dont take vacation based on spending points... Air fare is a small part of the overall cost of traaveling. Not alot of ppl would burn cash in order to not lose points.
Moat: this is were this idiot shows just how little he know about the industry. Sure anyone can do they own proprietary loyalty program but Aimia is more about th coalitiion. You accumulate aeroplan points when going to esso, when using your TD card, when order online at Gap and Sephora, when servicing your toyota. This is what makes the program attractive. Sure Esso has their own program but the value is only at Esso which limits the interest in for the members. I have HBC points too, i collect McD coffee tabs and my local sandwich place stamps my card when i go. But that doesn push me to change my spending habits...what does change my speding habit is the Aeroplan point I accumulate by going to Esso by double dipping. I will go out of my way to go to Esso. I will order with the Aeroplan referal link when i buy clothes for my little one at Old Navy. This is what this program is about. He is not comparing the same things.
There is also the cost.. can anyone start their program? sure... but can they attract engage members? and what is cost?
How simple is it really to start these programs? 2 of the most succeful program on the market is own by the same company. Shoppers points and PC points. they never combined them. It is was as simple as this guy makes it to be why did they combine them?
Also Aimia is in the propriatary business. Aimia runs BMO's program... bringing in house is not always cheaper, more effeciant, and more profitable.
Book value: not really usefull in context. What they are forgeting is that the value of points is determined by Aimia. they have alot of other assests. some big players have joined too... Mitleman being now a 10% shareholder. If you look at these guy it will increase your confidence. In fact a side note after looking them up, and their position on Revlon i actually took a position. 1 week in and i am +25% lol