BNN - Friday, May 24, 2024 - 09:00 a.m. (ET) - Segment #4

reality is earning season was good. And I think we more to look forward to going forward, especially if we start to get easing of rates. And of course, we see improvement in real wages. I think that could be a catalyst for reacceleration in economic growth globally. So so I do think that this is good time for investors to really be assessing their portfolios, ensuring that they're well diversified. And what goes into that diversification outside. You talked about geography is, but in terms of asset classes, how you think about that right now? I think when I talk about diversification, I mean, well diversified equity as well as fixed income as well as alternatives. And that can often be there can just be a focus on equities, but I think there's a lot of opportunity and fixed yields are in a far better place. Spend, have been for years and years and and so there are a lot of attractive opportunities there. And of course, there's areas like real estate that had been beaten if investors have a long enough time horizon, they should be sniffing around. And I would argue, adding to exposure. All right, a great perspective is christine, thanks very much for your time. Kristina hooper joining U.S. chief global market strategist at invesco. >> When we come back, it seems the boardroom battle at gildan has reached its conclusion point with the entire board resigning and handing the keys over to the activist investor brown and west. What does it mean for the stock will talk to a one investor about that next. Closed captioning of this bnn Bloomberg program is brought to you by Avenue Living Asset Management. Investing in the Everyday. At the cse, we're always invested in public markets, in business, in growth, in you. Find a great deal foryour ideal hotel.Open trivago, type inwhere you want t select your check-in andcheck-out dates and search. Compare prices forthe same hotel and save up to $50 a night. Hotel? trivago. Now this is where I want to retire. -Retiring already? -Getting there. The way I was investing before was outdated, paying them over 2% every year in mutual fund fees. Over time - that could've cost me hundreds of thousands of dollars. -Really? -With Questrade I can do it for a fraction of the cost, keeping most of that to fund my retirement. Not someone else's. Exactly. Hi, I'm Taylor Thoen, next time on btv. The White Gold project is made up of a couple of different core zones. The Golden Saddle is the largest in total. It's over 2.1 million ounces on average grade of about two grams per ton. We've also made a couple of very significant new discoveries in the last couple of years. We think those are company maker opportunities and we're really excited to do some more work down there as well. Watch us online or here on bnn Bloomberg. To find a food star gordon faces his biggest rival ever. Who wants to be on team Vanderpump? It's team lisa vs team gordon She can Vanderpump off. We're done on ctv all right, let's get back to one of our big corporate stories today. Gildan activewear back in the headlines. As the activist investor browning wes getting its way in the boardroom dispute that has been going on for months now. The ceo and the board resigning, abruptly paving the way for the former ceo. Glenn and even now be reinstated as ceo. Now in terms of what this means for the stock story, our next guest says a successful turnaround at the company could give guild, then a significant valuation boost. Let's get some perspective now from barry schwartz, chief investment officer at baskin wealth management. One of our regular guests area. No, you don't only shares, but what's been your assessment of this guild and story? >> Now yet, jon, but we're activity taking a look because think first of all, as canadians, we should be proud because we don't want to see every single canadian company leaves the tsx or get taken out and thinking about short-term I applaud the institutional investors, it's not just browning its, you know, turtle creek in a number

of the institutional investors significant stakes that believe that the long term of the company, there's going to be a lot of value creation. The stock as you you can see, underperformed dramatically for number of years and for good reason. Their earnings have gone nowhere. So there's a good case. There's a good argument to be made that gildan is dramatically undervalued. If abc, and d you know, go through. >> And you know, it's interesting because we were talking earlier about at the end of the day, a lot of what has transpired here started with a the ousting co. Yes, a ceo, but essentially a founder of the business it was then left to the board to kind of explain its thinking behind that. And I guess in the in the war of words, they could not make their case as many stakeholders as they had hoped to. For you as an investor, when you hear someone with such strong ties to a business coming back in, you're now considering investing, does that factor is the founder factor factor into your investment decisions. >> Absolutely, ash, but mr. Shawn money could, you retire and go on a beach in live the rest of his life. A very happy and said he's going to come back and have fight of his life to turn around the company. And so I applaud that type of mentality. Those are the businesses that I want to own. Lots of companies where the ceos are billionaires, right? They're worth a fortune yet they come to work every day and they're excited by the game of growing the business of the entrepreneurial spirit. And that's what we with mr. Sharma d and I thought, I think this is the right approach. I mean, to me, not knowing a lot about the company and not having researched in a while. I think there's could be a symmetric upside. Jon. The valuation here 10 times earnings all be at the results of stop the joint out for the last few years. So will give it that, but that seems very low valuation for a company in the past delivered 6, you know, stellar results one of the best canadian compound ers. And so want you go with the guy got you to the game, so to speak. And so yeah, I I think shareholders and those that don't own the stock need to take another look now is a great business. I mean, selling clothing is as we know, very tough business to be in. Look at lululemon stock, a great one of the worst performers on the s&p 500 their business is doing fine. You know, you have so you don't have control of your input you have a lot of changing tastes. Not the type of business that for our clients that we love to get into. But the valuation, the, the potential plan that they laid out could be compelling. >> Now I want to give our audience a little bit more flavour into your investment philosophy and talk about a couple of other investment ideas since you're talking about wealthy individuals who are running the show msci is a company that you have been tracking for a long time. It its creed. We do. The segment is called the list where we look at companies that, you know, meet a whole host of metrics. Msci, the index operator at makes a whole bunch lists that get checkmarks from investors and their ceos. A billionaire is you not? >> He has henry fernandez has been with the company for 20 years. Msci used to be part of the morgan stanley spot off number of years ago and has been an incredible compound or it sells. I licensing information on indices. The msci world index, the msci U.S. index. If your hedge fund and institutional fund. Yeah, new benchmark, your investments and you want clients and you want institutional clients, then you have to pay the licensing fee, whatever it costs and it goes, the price goes up every year. Dramatic recurring revenues. I think over 90% of those that pay msci firts data keep paying every year. What else you going to do? You can switch your benchmark, what you choose chosen a benchmark. So this is a company that is compounded incredible rate. The couple years, things haven't worked out, even though earnings are growing. We finally got a chance to buy what we think is a top 10 business. Quite honestly. Gross margins are unbelievable at, in my opinion, a decent valuation for the type of company that we're getting. So we're very excited to be shareholders finally of msci. And then on the canadian side would name you're watching right now is restaurant brands, the parent of tim hortons, burger king. What he liked that one. >> Same thing about the the type of mentality of the of is not a founder, patrick doyle, patrick doyle. >> Who is now the chairman of the company. He turned a domino's pizza around, making it one of the best performing stocks. He's come into restaurant brands. He's put a lot of money into the stock and he'll get filthy rich if

he hits the targets. But what what they're doing under the hood is amazing. The remodeling all the burger king's burger king has been under warming story for years. Worse as mcdonalds. I think it's finally catching up and we don't have to worry about tim tim hortons. Business is they were they wanted to get more of their market share at lunch and after lunch. And adding these pizzas has been a game-changer so far. We think I have no idea why the stock is down 10% this month. The results are very good. The guidance long-term gardens, very strong. It's one that we could see double digit earnings growth from here going forward. So a canadian are on the canucks change with a really good valuation in our opinion. All right, barry, always great to get your perspectives. Thanks for giving us some time this morning. Barry schwartz, chief investment officer at baskin wealth management. >> Time for a quick break. But bloomberg is reporting that spacex could soon sell some stock that would value the company at roughly 200 billion dollars will talk to bloomberg's ed ludlow about that developing story. When we come back. (Upbeat electronic music) Champion Iron offers a rare solution to decarbonize the steel industry. Which represents up to 10% of global emissions. The company recently doubled production capacity at its mine in eastern Canada. It is now investing to produce one of the world's purest iron ore. Enabling green steelmaking without the use of coal. Controlling a large portfolio of high purity iron ore resources. Champion is considering strategic partnerships to further develop the region. Champion Iron. The world of investments is growing, offering more alternatives than ever. ( ) Choose an alternative that invests, in what's here to stay. ( ) Things you can see and touch. ( ) Things that are part of our everyday lives. ( ) Avenue Living brings a different approach. ( ) One that's steeped in history, experience, and trust. ( ) Choose a proven alternative. Talk to your advisor about Avenue Living today. ( ) If you are an entrepreneur, you know what it means to be always invested. Grabbing hold of an idea and seeing it through, meeting old challenges with fresh solutions and believing in the power of tomorrow. We know because we're the exchange for entrepreneurs and we're always investing in public markets, in business, in growth, in you. This year. You know, all you have to take a look at the chart to see how well msci has performed over the long term. >> Well, rarely a day goes by when we're not talking about one of the businesses of elon musk today, it is space x and bloomberg has reported that company has initiated discussions about selling stock in the business at a price cut the value. The privately held company at roughly 200 billion dollars. It's an eye-popping number and we wanted to get some more perspective from someone who covers the business very closely. Bloomberg's ed ludlow joining us bright and early from san francisco this morning. A great to have you back with us and countries to know what would be the thinking here for spacex in making the move like this. >> Well, important to be really clear. This is what we call where spacex permit 6 employees staff and some a year investors to sell existing shares. In other words, shares that paul of compensation right to staff are c private stock. And the reason why is largely a liquidity event. You know, spacex has been around quite some time now. And one of the things about its progress is that a lot of the talent that they he's been there for a really long time. So high was mechanically elon musk and spacex cfi meet with a lead outside investa. And between them, they agree a price. And what we're hearing from one source says that that price is around 108, $210 a pace. And from that price range, you get a rough approximation of the valuation. So it's fun because you get to know the valuation that mechanically spacex isn't raising any money and it's not selling any new. Shes >> I guess elon musk weighed in on act, saying the company doesn't have a need for new capital, that they would be buying back shares. But to your point, having these liquidity events for employees is always a consideration. 200 billion I mean, at that

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