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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Could you comment on the buying and selling done by Mittleman. They have amassed a lot of share and taken a seat on the board. Now it seems they are selling some days and buying some days (manipulation to buy more at a discount?). Also the share prices when they sell are well below the current market rate (selling under $2). Are they selling in USD? Do you think they are making the market now?
Read Answer Asked by Wayne on June 27, 2018
Q: Can you provide a list of companies that are significantly beaten down, oversold, ugly? I'm looking for ones with balance sheet assets, but it doesn't have to be perfect.
Read Answer Asked by Wayne on May 30, 2018
Q: Hi folks,can please get your opinion on naming of Jeremy Rabe Ceo of Aimia. Appears he was successful as head of Premier Loyalty program in Latin America/Mexico and choice of Mittleman activists. Premier has airplane connections with AeroMexico & Sky partnerships,which includes Westjet in roundabout way. Stock now more investable?? Thanks as always, jb
Read Answer Asked by John on May 11, 2018
Q: I have held this stock for awhile, cost about equal to current price. Dividend suspended for reasons I could not follow after the price of the common dropped like a stone following Air Canada's withdrawl. I have no clue on how to do an objective analysis of this situation. I am not losing money, the potential gain is very good but the whole situation with the company is very murky. The easy out is to sell but if the company stabilizes itself or sells itself the potential gain is quite good. Given that the dividend on the preferred was stopped for what was described as legal reasons rather than cash flow reasons how does one assess the possibility of the dividend being restarted?
Read Answer Asked by Dennis on March 22, 2018
Q: I'm a dividend investor. I was considering selling Aimia and then it started going up this week. What would be the main reason for the recent run up? Their press release seems to indicate they have no intention of re-starting the dividend anytime soon. If there's good reason for the recent spike and decent potential, I'm okay waiting or would this strength be the right time to sell?
Read Answer Asked by Brent on November 10, 2017
Q: I am for the most part a conservative investor. The captioned equities form part of my high risk and in this case, high loss casino money portion of my portfolio.

Individually, none are material holdings and being in my TFSA provides no tax selling benefits. I periodically check similar high risk positions I sold and in some cases, more patience would have yielded high returns! Benj Gallander is a rather unique investor; his patience is what catches my attention and his results are not shabby!

Assuming I am willing to be very patient with no time horizon, is there any reason to believe any of these stocks are worth keeping for high returns? It is not a question of getting my capital back, rather should I hold them or move on to other high spec ideas? If time to move on, any bottom fishing ideas especially as we move into tax loss trolling in this segment of the market?

I appreciate the insight you provide to the more macro aspects that often are the prime focus of my questions. Your responses to all questions are very educational and informative. They make us all far better investors.

Thank you

Mike
Read Answer Asked by Michael on October 23, 2017
Q: Unfortunately I hold a small position of Aimia shares (AIM) in a registered account. I have been unable to find a specific reason why A.C. made this announcement now, since the contract only expires in several years. Any ideas as to why? Unless a contractual requirement, might it be a hardball negotiation tactic on their part to renew earlier, if the deal is too one sided?

Assuming A.C. is gone, would not all depend on the quality of management and how might an investor determine their acumen to respond successfully? What I have seen so far is not necessarily reassuring. First, they seem rather silent given the extent to which the stock has fallen. Second, would it not make more sense to cut the dividend and peg the payout to a percentage of the stock price which is more in line with market norms? Would not using the extra cash to build up reserves and/or buy back shares be a better use of capital and a sign of confidence for the market? The situation reminds me somewhat o Noranda Income Fund and the deal they had with Glencore?

I think the reaction is overblown but that is an opinion the market clearly does share given the stock price. Would very much appreciate your insight.
Thank you

Mike
Read Answer Asked by Michael on May 29, 2017
Q: Hello,

I am one who will be using aimia to write off against gains on other shares, but for now, they have committed to their dividend for this payment. Can they continue the dividend at this rate out of cash flow if they choose to do so? What would you envision them to do with their dividend in the future? Do they have time to weigh their options or are their outside forces that will force their hand more quickly?

Regards,

Robert
Read Answer Asked by Robert on May 26, 2017
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