RE:RE:RE:RE:RE:RE:........................JONES...................Jones bought 1,079,500 AIM shares in Sept at an avg $2.57, sold 0 making them the 2nd highest net buyer. Morgan Stanley net 2.032 MM shares this month at $2.42. Anon was the most active but actually has a net gain 775,000 shares & were most active seller today, taking month end profits I suppose.
Today's low was the average price for the month on 50MM shares so I don't expect much downside going forward. We gained 30 cents for the month and ended 28 cents down from the 2.75 midday high last week.
Both DIV (pays a dividend) and AC shares have defied gravity this month - over the next 3 years when these companies perform well, it benefits Aimia - DIV should be paying $13MM more to Aimia based on Airmiles Canada performance/milestones and AC continues to buy miles from Aimia for their Aeroplan customers. More passengers = more points. More redemptions = more recognized revenue.
We have 2 institutions holding more than 20% and it appears the stock has been under accumulation these past few months. We have also seen moves by Aimia to lower debt, sell non-core assets and lower expenses. Selling non-core assets requires less overhead such as work force reductions.
We have also been given teasers as to the direction of a re-invented Aeroplan and I have seen more activty this month from Aeroplan in the way of e-mails and promotions.
After waiting 4 months to hear from AC about their new loyalty program all we saw was an RFQ for a potential credit card partner. big deal, I am sure AC will expect alot from their partner.
The fundamentals for Aimia are very good and hopefully we hear more about further sales of non core assets, plan partners and plan for Aeroplan in the weeks and months to come. The market continues to apply a deep discount to AIM shares given AC situation is 3 years out but we haven't seen an impact on revenue.
Keep in mind Aimia maintained 2017 guidance ($2.2B billings) with 2 more quarters to be reported. With market appreciation we will see share price reflect true value which should allow dividend release and re-instated at some level. Also analyts will follow with upgrades and perhaps new coverage which supports the stock.
We'll see what October brings but I think this is a great investment opportunity, especially the way TSX listed miners have performed lately and those who aren't interest in pot stocks.