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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 31, 2012 12:00pm

Maybe this way is best?

Try to get Aimia owners of Aeroplan to buy the company in stock. Aeroplan is just finishing a promotion with Infifniti Car dealers across Canada. I think this is a category which would make money for Aeroplan.

 

Air Miles, Aeroplan's competitor, is entering the car dealership category. Would be tough for Futura to compete. Best leave to Aeroplan to battle it out and get the market share while there's the early opportunity.

 

Settle all of Futura's debt with Aimia shares. I think all creditors will agree to that. Futura's debt to Aeroplan can be settled with the transfer of the non-capital tax losses. Aeroplan could buy with their shares the remainder of the tax losses. (I'm guessing Futura could get $5-6 million. maybe more if done with Aimia shares and not cash).

 

Aeroplan already has their sales system in place, so it's possible that some of the Cost of Sales Futura incurrs each year is being duplicated. So this would allow a higher gross margin for Aeroplan. The value of the revenue stream would increase and Futura would be worth more.

 

Aeroplan will probably not want Futura Rewards. Futura would be left with the processing division and Futura Rewards, maybe to try again. In effect Futura would only sell off the Aeroplan revenue stream and the tax losses to Aimia. It would cost Aimia nothing and maybe if fortunate, Futura's shareholders may see some value.

 

I can't see anyone else big enough to buy out Futura. True a lot od debt is owned by insiders/close associate. But a large chunk is owned by outsiders and they have to be paid millions. Being a reseller is tough. Advantex (Aeroplan reseller also) is nearly profitable and yet is having trouble raising money with a 1/2 cent stock. Sop Ia can see a samller company being interested in Futura.

 

Anyway, my 2 cents worth. The above is only one option. But realistically. I can't see any way out but with a sale and maybe some value leftover for shareholders after the creditors have been paid.

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