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



TSX:FUT - Post by User

Comment by BayWallon Nov 04, 2012 4:44pm
103 Views
Post# 20560698

RE: RE: Bidders showing up

RE: RE: Bidders showing up

I can be a pessimist and say that there will be nothing leftover for shareholders. Doesn't matter to me. I just move onto the next stock and try again.

 

In some of my posts, it pointed to the car dealership idea as having flaws. The dealerships already had good loyalty programs in place for decades. Aeroplan would do little for them. Some dealership's websites referred the Aeroplan miles as a gift for already being loyal. Doesn't make sense.

 

If all dealers had Aeroplan where's the competitive advantage among dealers? I wondered who the best dealership was, and how they make Aeroplan work. But management sadly doesn't have that information. Maybe someone else can make a go with this car sales/service category, but they will face the same problems as Futura did.

 

Lucky if the creditors get paid. The total owing was given in the last post. Its over $11 million. The company must be sold for over that amount for shareholders to see anything. Plus there are the lawyer fees for this CCAA process. For shareholders like you and me, probably nothing left. Left holding the bag.

 

Asset sale probably. TSX Venture shell companies go for about $800,000. I don't know how much they will get for the other assets and cash flows. The got some receivables, but these are a drop in the bucket. Tax losses would have value but probably not enough to pay shareholders.

 

Yes the bidders for the company are showing up, but unfortunately, not the bidders for the stock. The bidders for the company want the assets only and not the shares.

 

 

 

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