Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, May 17, 2013

Article Excerpt

Please note: The next issue of Stock Pickers Digest will be sent out on Friday, May 24, 2013. AIMIA INC., $14.98, symbol AIM on Toronto, dropped over 6% this week, even though it reported higher revenue and raised its dividend. The company owns and operates Aeroplan, Canada’s largest loyalty program; Nectar, the U.K.’s biggest loyalty program; and Nectar Italia. In addition, Aimia has interests in Air Miles Middle East and Club Premier, the leading loyalty program in Mexico. In the three months ended March 31, 2013, Aimia’s revenue rose 7.4%, to $609.5 million from $567.7 million a year earlier. However, excluding one-time items, earnings per share fell 12.9%, to $0.27 from $0.31. The company’s cost per mile awarded rose, mostly because of higher expenses as Aimia expanded its operations. That was the main reason for the lower earnings. Aimia continues to grow internationally. That’s offsetting the risk of its Canadian business: Air Canada, a major Aeroplan partner, is vulnerable to labour disputes that…