Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, November 16, 2012

Article Excerpt

AIMIA INC., $14.70, symbol AIM on Toronto, owns and operates Aeroplan, Canada’s largest loyalty program, and Nectar, the U.K.’s biggest loyalty program. In addition, Aimia has interests in Air Miles Middle East and Nectar Italia, as well as Club Premier, the leading loyalty program in Mexico. In the nine months ended September 30, 2012, Aimia’s revenue rose 1.0%, to $1.63 billion from $1.61 billion a year earlier. Excluding one-time items, earnings per share rose 33.8%, to $1.03 from $0.77. The company’s cost per mile awarded dropped significantly, partly because it is making better use of its computer systems. Redemptions also fell. Aimia continues to diversify its operations geographically. That’s offsetting the risk of its Canadian business: Air Canada, a major Aeroplan partner, is vulnerable to labour disputes that can disrupt its service. The company will probably earn $1.48 a share in 2012. The stock trades at 9.9 times that forecast. The slow global economic recovery could hinder Aimia’s growth, but its long-term outlook…