BNN - Thursday, May 23, 2024 - 01:00 p.m. (ET) - Segment #4

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canada and south america and in the u.k.. What what attracted business, obviously, addition to selling new and used equipment from that has a dealership model is really attractive in that the also provide the aftermarket to equipment that's already in the field. And why that's important is that this term or support much higher margin. It's really resilient during downturns. And it's mid to high single digits organically over the last few years. We also like the stock is we think the company, the management team has done a really good job reducing cost in the business and improving inventory turns. That has resulted better free cash flow generation higher return on invested capital for the company. When you think about resource sector's? Well, obviously, my name is almost 50% of ready is now. So they should be a beneficiary of this higher commodity price environment that we've seen in the last several that provide a camel for some of the mining producers to increase their capital spending play some of their aging fleet that they can rent a 62. And the last few despite really attractive fundamental backdrop that we see for the company. The stock, as you mentioned, is trading at the lowest valuation has a history. And track to set up for the staff on and the sports. A dividend yield of about 2 and a half which for small-cap, you don't always see. >> That these companies have the balance sheet, even pay a dividend. So very is a totally different company, but I know has kind of similar metrics in terms of valuation. Also sports around the 3% dividend yield what do you like about about this company making accessibility devices for seniors? >> For sure. So I just the level set in terms of a subvariant ba 2 for those that don't know the company. So there and you just really year and designing a accessibility equipment that's used by seniors some of the products would home elevators, homes, their lives and wheelchair lifts seniors when used to loving down the different floors of their we really like the company because we think that they benefit from a couple of secular obviously, aging demographics and this increasing preference to seniors, age at home and to do that anymore. That politics, that's a very offers we also think there's an opportunity for the company to dramatically expand margins over the next 2 years. I think most more closely acquisition of a company called here at back 2021. So put it all together. We think that this compound where you know, to high earnings per we combine rose single plus the margin expansion. And then as you mentioned, with the 3% dividend yield. We think that's an attractive total return profile for the stock going forward. Only have about 30 seconds left, but ats automation, this one's got caught up in the softness in electric vehicles. Was this a buy the dip opportunity? >> Yes, we think opportunity here is that the expectations for the company, like they >> Solutions you know, across different verticals, including life sciences and transportation. Stock is obviously head concerns around just 30% of their business. Going eat the rest of the business, which is more life sciences exposed more consumer-focused has really continue to grow and perform really well. And we think that that creates this opportunity where expectations of henry said lower for whereas the rest of the business I'm really well. And the company is also a continuing to deploy capital really highly accretive acquisitions going forward. When we look at trading at a lower and it's a sport that range and reduced know, that's a attractive set up for that company for long-term investors. Sergeant, thanks so much for joining us. As sajjan betty joining us from canoe financial. We'll take a quick break. Mowing the worst performing stock on the dow will tell you why when we Hi I'm Taylor Thoen. Coming up on btv. There's been over 11,000,000oz of additional resources found since 2020 by people working in the Tombstone Gold Belt in the Yukon. To date, we've only found that two deposits. But there's nine known gold bearing intrusions on our rc gold project. More potential outside of the discoveries that we've made already.

Watch us online or here on BNN Bloomberg. We all strive for peace of mind, whether in life or our investments. But that's not easy with today's market complexity. For over two decades, Goodreid has helped Canadians from coast to coast to achieve their financial goals, through both good times and bad. Working with our portfolio managers, you can navigate tomorrow's financial uncertainty with confidence. It's time. Take control of your wealth. I'm Gordon Reid. Invest with confidence, invest with peace of mind. To learn more,visit Goodreid.com. -Last quarter Capital Direct investors saw a return of over eight percent. -Find out why so many people have been trusting Capital Direct for over sixteen years. -Speak to your financial advisor today and ask for a copy of our offering memorandum. CapitalDirect.ca Harvest Healthcare leaders Enhanced Income ETF. Maximize your monthly cash flow from Canada's leading healthcare ETF. More income from Healthcare Leaders. Harvest ETFs, income happens here. Speaker: Hi, can I take your order? Hello? Oh. Hey. Wait, what was the question? Speaker: Let me guess, one driving high combo, extra baked? No? Uh, can I get a burger with a side of... fries? Think you're a better driver when you're high? Think again. Smoking weed affects reaction time and concentration. A message from MADD Canada. Closed captioning of this BNN Bloomberg program is brought to you by Stenner Wealth Partners of CG Wealth Management. Outgrown your advisor? We manage portfolios of over 10 million dollars. >> ALL RIGHT, LET'S CHECK IN ON SHARES OF BOEING. THE BIGGEST DRAG ON THE DOW RIGHT NOW. LET'S BRING IN BLOOMBERG'S JON HYLAND FOR A LOOK AT THE WARNING. BOEING GAVE TO SHAREHOLDERS. AND JON, WHAT DID THEY SAY? >> SO THE COMPANY CFO IS SPEAKING AT WOLFE RESEARCH CONFERENCE. THEY'RE WALKING BACK THEIR 2020 FOR CASTLE TARGETS. SO SCHEER'S ANNOUNCING THE BIGGEST DROP SINCE JANUARY, THE 2ND WORST PERFORMER IN THE S&P 500 FROM A PERCENTAGE PERSPECTIVE AND THE SCRAPPING PLANS TO GENERATE CASH AGAIN THIS YEAR AND SAYING THEY WILL SUFFER ANOTHER SIGNIFICANT OUTFLOW IN THE CURRENT QUARTER. CASH BURN IN THE 2ND QUARTER WILL BE SIMILAR OR WORSE TO THAT OF THE 1ST QUARTER WHEN BOEING RAN THROUGH ABOUT 4 BILLION DOLLARS. BRYAN WEST, THE COMPANY CFO, DID CAUTION JUST A FEW WEEKS AGO THAT BOEING WOULD EXPERIENCE A MESSY 2ND QUARTER WITH SIZABLE CASH OUTFLOW. BUT TODAY'S COMMENTS ADDING MORE FUEL TO THAT FIRE. ALL RIGHT, THANK YOU VERY MUCH. THAT'S JON HYLAND REPORTING ON BOEING. WE'RE GOING TO TAKE A QUICK BREAK. >> WHEN WE COME BACK, WESTJET PLANS TO LAUNCH A NEW CHEAPER FARE CATEGORY. JUST GOT TO PACK LIGHTLY. MORE ON THAT WHEN WE COME BACK. (Upbeat instumental music)Canadians are facing a newnormal with interest rat and investment options. The Capital Direct OneIncome Trust is in a growing asset class thatprovides stability and is income-generating forportfolios. Here from Capital Direct areEire Gorman and Aaron Narayan, great to see you again. Thank you for havingus back, Mark. Eire,how are interest rates impacting the Capital DirectOne Income Trust? It's really important tounderstand the timeline of the loans that make upthe income trust. These are fixed-term vehiclesthat don't have the volatilityof a variable product. That means we're less-vulnerable to interest rate changes for18-24 months. Aaron, what arethe pros and cons for the trust if interestrates go down? First off, we love stability. Looking forward, we believe interest rates willact in our favour. If rates go down then (Unclear)or now Cora drops which means the cost of capitalis actually cheaper. And what if interest ratesstay around these levels? Aaron: If interest ratescontinue to stay the same we continue to kick out similarreturns as we have been for our investors which makethem extremely happy. So the trust holdsresidential mortgages. Based on what you're seeinghow would you say Canadian homeowners are coping in thisnew interest rate environment? This is a good news story. Canadians arefinding ways to cope. Our mortgage investments andflexible lines of credit have allowed homeowners toconsolidate at a lower rate and continue todo the things they love while owning their own homes. As we said here, homeownershipis so important to Canadians and we've seen the choices thatthey have made to remain in this privileged category. And it's also important to notethat throughout this new normal we've kept our loaned valueat a very comfortable 52%. If advisors or investorsare interested how do they reach you? Yes, Portfolio Managers andFinancial Advisors can find us atincometrustone.com. And for direct investorsyou can call us anytime at 1-800-625-7747.

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