Originally Posted by
97gst
Stock dropping at ~10% a day... the end might arrive way before anyone actually receives any cards/flights.
Saved up for 4 years for a RTW trip... not optimistic I'll even get a toaster.
I would advise against a panic at this point. It is true that Aimia stock price cannot sustain the downward volatility we are seeing lately but this may well be a case of an overreaction by the market due to absence of any other information. In this sense, the stock market is not that different to this forum. We react emotionally to lack of information by taking steps to reduce our exposure to Aeroplan, so do the investors. They take steps to reduce their own exposure to Aimia absent of information. But clearly, neither FFs nor investors will completely quit Aeroplan/Aimia just yet.
Originally Posted by
1Newflyer
Time for legal minds on FF forum to post up on and explain as to the responsibility for the loyalty program. Aeroplan is the administrator of such but it's AC program, no? And the program partners especially financial institutions that make a bundle from issuing credit cards, don't they have responsibly for this program to have some meaning to its members? All above mentioned entities get funds from us, being it by buying tickets or any other stuff from the partners,and in return we get goods or services in addition to miles. If these miles are nonredeemable because of partner's disagreements that we have nothing to do with, then a significant harm is rendered to Aeroplan members.
I think you are asking a lot. This is an extremely complicate question way beyond what anyone can expect to tell you. The points you raised are interesting, I have no idea how to address them however because they are very complex. If it does reach that point, I think the question will no longer be purely legal but will be mixed in with quite a bit of politics, both local and national.
Originally Posted by
Frayed_Yak
Is AC legally able to buy Aimia pennies on the dollar at this point?
Nothing says AC can't but in all likelihood, won't. Because doing so at this point
will for sure lead to a spectacular lawsuit by Aimia Shareholders and investigations for Market Manipulation and other potential damning charges by the likes of Ontario Securities Commission.
Note I specifically used "will for sure", I am that certain.
Originally Posted by
smallmj
So this is probably a stupid question, but what does the stock price have to do with Aimia's ability to operate and honour its commitments. The shares are already sold, right? How does it cost Aimia extra to have a low stock price?
I don't know anything about investments, but it seems to me that a low stock price is a perception of a failing company, not a cause.
Why Do Companies Care About Their Stock Prices?