RE:RE:RE:Cash On Hand?You should get your facts straight before posting. Some people look to these boards for education, but it is a dubious form of education since anyone can say what they think without background or knowledge.
First, it's Mittleman Bothers, not Middleman
Second, there is no evidence that Mittleman's are withdrawing. There no doubt are redemptions in their fund as there is panic selling everywhere, but they have been working this investment for a long time and have finally cleared the obstructions to making this into a holding/investment company. They are not comitted to the Loyalty sector, and that's good, because in a weak economy that's not going to be a big winner. Aimia's bigest hurdle at present is that PLM will be a drag where it had been our only revenue generator, and that is why the stock collapsed like airline stocks, worse than the general market. They are value investors, looking to redeploy the capital at an opportune time. I wish I had cash to buy right now.
Lookiong past that, Mittleman's strategy of investing the cash, and finding opportunities to take advantage of the tax losses on the books, means that they are in the market with as much cash as they had before the market, shopping for stocks discounted 20-30%. Should they simply repurchase the Cardlytics shares that were sold, they could more than double the money by the time those shares return to their previous value, which they likely will in 1 1/2 - 2 years. That would be a 50% annual return for 2 years. There are lots of other opportunities in the market. The potential of utilizing tax losses in this market are substantially reduced however. Even the pasive investment in Canadian banks and utilities are likely to have a 30% or more upside over the next 1 1/2 - 2 years.
As for the CEO, Rabe, I am surprised he is still arround, but make no mistake about it, he is on a short leash and it's clear the new board are making the important calls.
As for Covid's impact on Aimia's price, it is oversold for a few reasons. First, it has been going through a difficult reorganization and the fruit of that is not showing, therefore it is a higher risk than "Blue Chip" stocks like banks and utilities which are down 20-30 % too. Second, it;s major revenue at present comes from an airline loyalty program, and any travel associated bussinesses are directly affected. PLM will not provide the revenue it was for some time and the recovery of the sector is more vulnerable than the rest of the economy. Third, with bussiness losses everywhere, the opportunities to find investments which can take advantage of tax losses on the books will be much less and the potential value of those is depressed. But right now, cash is king, and relatively speaking Aimia has lots of it. In fact with just under 94 million outstanding shares and $349.8 million in cash, that's $3.76 / share available for investment.