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



TSX:FUT - Post by User

Comment by BayWallon May 08, 2012 9:00pm
128 Views
Post# 19887450

RE: i'm mildly impressed

RE: i'm mildly impressed

I too had my worries when I saw no bids. Then I thought maybe the debt holders had offered the company an ultimatum. But they only recently renegotiated the terms, for an extension. so this was not the reason.

 

Insiders can't continue to pump money into this company forever. I thought, the stock sold off because of fears no more capital will come to the company from insiders. Need money for full-time reps in BC, the prairies, Ontario/Quebec and the Maritimes. Not just for initial contact and sign-up, but for ongoing follow-ups. The US expansion will require even more money.

 

Then I thought rollback fears are at play here. But a consolidation is what the company will have to do to fare better in the future. However, with the stock at 1/2 cent, is this the best time? I looked at Advantex ADX (Aeroplan reseller and is profitable) which has bids at 1/2 cent, and I thought, well that's the way it is with these juniors. It would then not be unusual for Futura to trade at 1/2 cent..

 

Overall,  I think stocks in the loyalty business are cheap. That's why Aeroplan is buying back up to 10% of its stock. (Groupe Aeroplan to buy back up to 17.17 million shares). Unfortunately, juniors like Futura and Advantex get hammered even harder.

 

Never thought about it, but why not some insiders buy the stock at 1/2 cent. For $100,000 buy 20 million or about 10% of float. And maybe they are.....bids came in at 1/2 cent in the afternoon and I was relieved. I double checked the indicators, and while under some down pressure, they still point to better things ahead.

 

I'm not jumping for joy yet. But as the saying goes, I'm cautiously optimistic.

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