BNN - Friday, May 24, 2024 - 11:00 a.m. (ET) - Segment #2

back. Joining us now is bloomberg's divya balji divya is managing editor for breaking news americas with bloomberg news. And we'll talk divvy business software provider workday. That company has provided a disappointing forecast and the shares are getting punished in the market today. >> Think dropping workday shares today. You know, they basically came in and cut their subscription revenue forecast for the year. Now, this is the really key metric for work day for them having to cut it. They're really getting a niche in the market right now. You know, there's a whole bunch of analysts have also come out cutting their share price target after this news. And basically the whole concern is around the fact that they you know, what has said is that they are seeing a lower customer headcount growth and a little bit more scrutiny on stale as well, which is what's really causing this problem when it comes to corporate bank what I was a particular has pointed out that, yes, there is a lot of concern about the fact that growth, even accelerating at the pace that they had originally thought way. But they also, you know, sort of brought just a little bit more optimism saying that the theo is trying to work on a turnaround in terms of growth for this company. The only issue with it is that we don't know how long it's going to take. And that level of uncertainty is probably also adding to concern, considering that they have had to reduce the forecast. Really one of the companies that are down, that is down a material amount today. >> Let's talk about space x, the elon musk company planning to sell shares. >> Yeah, interesting turn of events here in the sense of you know, they're, they're starting to discussions to sell shares tale of the shares. If they do go through it, go through with it at a specific price maybe between 100 and a 210 could actually put its valuation at about 200 billion dollars. The last time they did a share sale similar to that they're thinking about valuation was at 180 billion dollars. So there's still an increase that is a pretty large number that we're talking about for space you know, what they're thinking about is another tender offer where insiders and employees can sell their shares elon musk has come out to say that they're not considering this at the moment. Anything that they do would be to to buy back shares in front of me, need for additional capital. But you know, these things can always go one way or another, I guess out. But still the valuation here probably the key part that is quite interesting that if they do go ahead and if they do have the appetite, if there is an appetite to buy the shares at the price that they're looking it does go up by about 20 billion dollars. >> We're going to talk more of a weight loss drugs in the next hour or so. Eli lilly announcing it's investing 5 billion dollars us to boost its supply of weight loss drug. And a drug study just said that exempt back that flagship weight loss drug cuts. The debt of the risk of death via kidney disease. So lots of news in the sector to that. >> Yeah, I mean, you know, it's to really key pieces of information. You know, paul, you and I have talked about in the past about how important by is in terms of this high demand that we're seeing in weight loss drugs. Eli lilly had really strong results will be reported a few weeks ago. But key topic of the key question that kept coming up with in order to be able to meet that demand now with this latest news. But they're able to spend more than 5 billion dollars to increase production of a key ingredient its weight-loss and diabetes drug is really, really key here. I think the market is liking that and are seeing it's a step in the right direction. This would go into their largest ever facility in indiana. What you're thinking about what they're looking that's a good piece of news. On the flip side of it, you know, no artist obviously supply still issue, but they are talking about this study that has come out where for its struggles that they, it's not just about losing weight. It's also about the fact that it could help with reducing death in kidney disease. Now diabetes and kidney disease are linked together. People who have diabetes have a higher chance of having kidney disease as well. So this is the right step in the direction of a drug that not only helps with diabetes or how losing weight. Also could potentially help with any kidney disease as well. So thank you think to really good news. He says the good news today for the weight loss industry. Divya, thanks a lot. Have a great weekend. That's divya balji of bloomberg news. >> While investors are paying more attention to nvidia are rising on ai demand. There might be some hidden gems in the market. >> That offer attractive retus. That was the view of our featured guest of the morning. He's a veteran portfolio manager, his 3 stocks that he thinks underappreciated gems. Hi, I'm Taylor Thoen. Next time on btv Business Television. We are in a very unique position. We are the fifth largest open pit project in North America. There are not very many projects that have 7,000,000oz

in a tier one safe jurisdiction. The future and the potential for this project to move forward are getting better. With all the work that we're doing to continue to de-risk it. Watch us online or here on bnn Bloomberg. 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'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. The main focus of Urbana is asset growth. Building the assets of this company. We invest in public securities. Everybody does that, but we also combine it with private equity investments, which is very, very important. And that's where you can make some real money. And the beauty is you're buying it at a discount a discount from asset value. I think we do contain risk extremely well. We have a very, very experienced team and we've got results over a long term period of time. She'll never bend the knee. The greens are coming for you, Rhaenyra, and for your children. (Dramatic music) Otto: It is your great privilege to witness this, a new day for our realm! (Cheering) (Roar) Rhaenyra: We don't choose our destiny. It chooses us. (Dramatic music) I am Paul Atreides! Duke of Arrakis! Let me fight beside you. I'll show you the way. 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 Closed captioning of this bnn Bloomberg Program is brought to you by Scotia iTRADE. Everything you need to direct invest. Scotia iTRADE. It's every investor's dream. Welcome earlier to this morning on the street, we spoke with lorne steinberg, he's president of lorne steinberg wealth management. He was our featured guest. He highlighted 3 stocks that he considered hidden gems. And here's that conversation. >> Stayed in the boring property casualty insurance business has been a master of capital allocation. They're the best insurance company in the business. Not saying this on for consumers, but certainly for investors over the last decade, allstate has delivered a 13% annualized return to its very happy shareholders combination of generating huge free cash flow, massively reducing their share count and steadily increasing their dividend. And they're only selling for 11 times earnings today, they remain incredibly cheap stock in a core holding interesting. >> What about the dividend is not a factor. And this is obviously a U.S. company. So the dividend would not be eligible for the favourable talks treatment that they get here in canada. Dividends are a smaller portion of their turn to a 2 and a quarter percent today. So mean the bulk of return has been a you know, by share price increasing. >> And the share this company has pulls actually bought back over 50% shares over the last 15 years, that his net share reductions. There's no one like instead of chasing growth, they're chasing profitable business and they'd rather spend the if buying back shares. The best thing to do first is trying to grow the business. As I said, it's just been such a long term. Wonderful double-digit performer. How does it compare to the big canadian lifecos or is that is that a fair comparison? The better can harris will be intact, which is pro incorrect, right and intact to share. Cecil was a great company, by the way.

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