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CI First Asset U.S. Tactical Sector Allocation Index ETF T.FUT



TSX:FUT - Post by User

Comment by BayWallon Mar 14, 2012 10:16pm
93 Views
Post# 19671822

RE: Two Merchants

RE: Two Merchants

Not an exact calculation because the MA&D numbers were based on 3rd quarter revenue. But if that the first 3 q of 2011, Futura had gross revenues of $1,472,000. Of this 73% was due to the Aeroplan program. The report goes further to say that 2 merchants were responsible for 43% of total sales in Q3.

 

I'm extrapolating it backwards over 9 months (ending Sept 30, 2011. 43% of $1,472,000 is $632,000. Divided by 5 cents =12.6 million miles issued by the two merchants. Wow! These were not car dealerships either. Probably OK Tire and one other merchant, due to the large number of locations they have throughout Canada.

 

I was guessing how many car dealers would be required to issue 12 million miles and the time frame. Difficult question to answer. But I think this information will be gathered by Futura as time passes. Then we will have an idea of the average contribution a dealer makes to Futura's gross revenues. Then it's easy to extrapolate into the future. Potential can be stated by dollars and not only by the number of car dealers out there. Then the company can say an average dealer will generate 1 million miles. Or $50,000 to Futura. 100 dealerships $5 million gross revenue. Could be more or less, but that's the idea.

 

Being the ground breakers in the auto category, Futura will need to develope their own stats. Maybe someone has tried to calculate it, based on 2 quarters and likes what is happening, then buys into the stock or loans money to the company.

 

How well will loyalty programs be accepted by US car dealerships and auto service centers remains to be seen. In the auto service industry, signing up a few nationwide franchises could make a significant contribution to Futura.

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