Point International (PTS.TO); extends GPX - key to liquidity

Headline: InterContinental Hotels Group's Priority Club(R) Rewards Joins Loyalty Program Marketplace.

I think that this could be considered a fairly important milestone for the Global Points Exchange (GPX). People can now essentially trade hotel rooms for flights with other people, and vice versa. The extension beyond air travel enhances the value of the service, and further extensions into other sectors should continue to add value.

I hope that the loyalty program participants in this secondary market begin to more aggressively re-evaluate pricing. It appears that some like Aeroplan have already made the decision to reduce transaction fees. Hopefully other market participants will follow.

As PTS exits 2008 with around $75 million in sales and a couple of million in EBITDA, this Company is poised to be a near monopoly player in a market that appears to be somewhat insensitive to the current recessionary cycles.

At $0.52 share price and a fully dilute market cap of less than $80 million, PTS is a stock to own for the long-term. Three years from now when it has the potential to generate $25 to 30 million in EBITDA, it will seem remarkably inexpensive.

I do not own this stock, nor do I receive any financial benefit from Points International.

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