RE:RE:RE:RE:RE:The dividend staysForces , You're trippin man.... if you think that AIM is going to keep a 33% divi.
AIM's first priority will be to conserve FCF , heading into Air Canada's termination
of Aeroplan contract. Credit card revenues will fall off dramatically, as people leave the
Aeroplan program to join the new Air Canada program since airline programs are always
better for travel than loyalty programs , and Air Canada will sign their own deals with credit card companies. To lay off workers or offer early retirement costs lots of $ .
Besides, people buying right now are not buying for the divi. , they are buying with the
belief that the stock is oversold and could ( and should ) have a bounce. This stock has gone
from almost $10 to $2.50 in little over a week... the divi should be the least of anyone's worries.
quote=TheForces]The dividends stays not only this quarter but for years to come. Anyone saying different is a liar or poorly informed.
Everyone needs to read the "Management Discussion and Analysis" posted on Sedar.ca and also available on Stockwatch. The Stockwatch interface is much easier. The Sedar interface hasn't been upgraded in decades it seems.
All your questions and concerns are addressed.
1. Management has enough FCF to continue to pay its established dividends of 20 cents. That's based on FCF, not stock price. And FCF has been increasing quarter over quater for the past year!
2. Stock price does not impact the money flows from contracted relationship until 2024! The AC possible departure in 2020 is only for frequent flyer miles from AC! The bulk of the funds from Aeroplan branded credit cards remain. AIM owned Aeroplan, they are in the driver's seat. AC is in the back and caused a temporary wipe out of the stock. The car is still 100% intergral but one of the passenger in the back seat has indicated they plan to leave in 2020. If I was management, I would say "Shut up, we're working on a replacement for your seat". Well, read the MD&A, they indicated EXACTLY that. I'm amazed how people can't read between the lines!
3. The company has more than enough cash flow and if they don't they can delay the 2018 early redemption that was announced. The urgency is to protect investors at this point. They have a fiduciary duty to do so otherwise they are liable for shareholder claims. Every step here will be carefully watched.
4. The share buyback will have an immediate positive impact on the stock price, especially if they have a good investment banker on their side who understands the markets. This is not a small company with no experience or resources. And it's not difficult for a broker to support the stock price when the bulk of the sellers are gone and large US money is flowing in to compete with you on the bid.
5. Historically, when companies face issue, they reduce costs. Biggest costs to most companies is payroll. That's one area this particular company can do ASAP since it's bloated, very bloated. It has over 2000 employees. On a company like this, older workers might see an opportunity to retire early to preserve the health of the company (and pension) long term. I've found if employees are educated on this, they volunteer to leave early especially in roles that have been made less relevant because of technology. They go from ending their careers on a high note since they contribute to the longer term success of the company. Anytime a company announces early retirement and cost reduction of payroll, stock prices go up because the markets sees the higher efficiencies.
So please stop spreading false information. Get informed! Read the official information. Half the things posted here is pure nonsense. On purpose by crooks or just uninformed people? I don't know but it has to stop.
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