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Bullboard - Stock Discussion Forum CI First Asset U.S. Tactical Sector Allocation Index ETF T.FUT

TSX:FUT - Post Discussion

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Post by BayWall on Oct 24, 2012 1:20pm

Details Details

A lot of detailed reading in those filed documents. More to come soon.

 

Paragraph 38 says:

 

Futura plans to return to Court in the very near term to establish a comprehensive investor or purchaser solicitation process for all or part of the Company's assets and operations, including the loyalty reseller operations, the technology assets and the tax attributes. The results of that process will dictate what type of plan or other options may be available to the Company and its creditors.

 

I think they are trying to figure out what the company is worth and/or can be sold for, and go from there. The value is up in the air for now, but hopefully in the coming weeks the preliminary numbers will come out. Technology assets....how much are they worth. Is this the processing division?

 

The status of the "Futura Rewards" program is uncertain.

 

The million dollar gross margin is worth something. But can the Aeroplan revenue and the other revenues be split up upon sale? The tax loss of $31 million would bring in millions.

 

I think they have enough to pay all creditors if everything is sold, unless there are other expenses someplace like back pay to employees. There's also a question of whether they can find buyers for the assets. Whether anything will be left over for shareholders remains to be seen.

 

Also, will they continue with US expansion or remain with Aeroplan. That's another puzzle. Expanding to the US with so many creditors knocking on the door. $10,000 earned form US operations in 2012, but the amount spend was much more.

 

A lot of stuff to crunch through before the picture becomes clear.I would at least want to know an estimate of the value of the company. Say $10-12 million?

 

The $1 million net revenue stream is worth $5 million? Tax loss value of at least $5 million. I figure a company like Aeroplan could use the $31 million tax credit to gain at least $10 million saving, assuming a 35% corp tax rate.

Comment by gofx on Oct 24, 2012 3:53pm
You are making a lot of assumptions.   The revenue stream of a company that USED to have revenues is what we are looking at now.  There is loss of market confidence, loss of employees, etcetera.  There is no way in the world anyone will look at any of the assets and price them as if this was a profitable company.   This is a fire sale.  Anybody getting assets has to wonder ...more  
Comment by BayWall on Oct 24, 2012 8:38pm
Maybe too many assumptions is right.   However, it's amazing that management continued operations knowing of the dire circumstances. BNA Smart Payments, P & B Transport and DT Tire Distributiuon (B2B).   Re-acquired the processing division. Deals with Protractor Software. With the 4 US frequent flyer programs with Points.com allowance.   All of the above, and  ...more  
Comment by supercableguy on Oct 24, 2012 9:24pm
They had no intention of making it survive when they took over.....they just put all the money in their pockets until everything blew up...not even paying Aeroplan... we will never see a cent of our money...trust me The shares are worth 0000000000000000000000 !!! like i said before its over.....
Comment by supercableguy on Oct 24, 2012 9:25pm
not to us.... thats for sure,,,
Comment by BayWall on Oct 24, 2012 11:03pm
Dave Campbell said: ...the company looks forward to acheiving profitability... (March 29, 2012) "Next level of success", said by Mark Farrell in the same news release. What were they thinking? Completely at odds with reality of the situation. Negative cash flow did not start yesterday.   Kids Futures to help pay for education, CARP, alumni, coupon experiment, hub/spoke idea ...more  
Comment by gofx on Oct 25, 2012 9:57am
The folks who just stepped in front of the creditors... that's who.
Comment by BayWall on Oct 25, 2012 11:24am
Those general and admin expenses and salaries maybe? These are not the cost of sales of $991,000, but the $1.7 million in general and admin. I know they have to pay rent for the offices,  professional contract services, etc.,but still.   If it's that much, and is necessary to run the company, then stop the company now. Revenues do not support it nor will any time soon ...more  
Comment by gofx on Oct 25, 2012 11:41am
I have no information on this but perhaps you should compare the salaries of the folks giving loans to the size of the loans given -- and the standing of those loans compared to shareholders.   I'm not suggesting anything was done wrong... but that the reality of the situation should be understood.
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