BNN - Wednesday, May 22, 2024 - 12:00 p.m. (ET) - Segment #2

>>> We will be back with kim it's spring time in paris and the kings and queens of clay have come out to play Tennis played on another planet That is a piece of art right there Ooo lala! Roland garros on tsn and tsn+ Hi, I'm Jessica Katrichak. Coming up on btv. Very rare to find this type of mineralization in your first couple of holes. So usually copper gold porphyries take maybe 20, 30, 50 plus. Nobody had really systematically looked for these type of deposits in the Yukon. So we're the first movers that are really looking systematically in this terrain for copper gold projects. Watch us online or here on bnn Bloomberg. 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. The future is zero Carbon. Mayfair Gold is developing Canada's first carbon neutral gold project with offsets funding residential solar panel installation across the country. Mayfair Gold. 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. Keep the questions coming to kim bolton. Costa is in montreal and he's up next high >> Hello, gentlemen, thank you for taking my call. Great show. I watch every >> Paul: let's keep the questions coming to kim bolton. Costa is in montreal and he is up next. Hi, costa. >> Caller: hello, gentlemen. Thank you for taking my call. Great show. I watch you every day. >> Paul: perfect. >> Caller: Mr. Bolton, my tech fuhr, constellation software. I would appreciate your views. It's had a a double in the last few years. Is it possible she will double again in the next few years? >> Ooh, costa n the next three years. So what it's currently trading canadian just around 3700. We have 3743. So we have a 12-month price target on constellation of 3980. This is just the poster child for canadian technology and so many others try to replicate it and I guess the closest one is actually their sister company lumine. But I would actually still buy constellation here. It is so well managed by mark leonard and his team. But you know could you buy it here right around 3740. If you ever see it down anywhere around 3550 that's a good place to buy it and then down around 33®. This is -- oh, gosh, where do you start with this. Over -- so they started back in 1995. They have acquired over 260 companies and the difference with constellation -- I was compare -- on one hand you have something like a microsoft who has a number of products and services and they spread that horizontally across a number of industries. Constellation is all about vertical integration. So they pick a certain segment of finance or entertainment or hospitals or whatever and then they build the products and services that actually service that vertical and it's a great way to actually you know expand the business. It's funny that a lot of other companies don't sort of go that vertical direction but I guess it's a knack that you sort of have to be able to do. But we still own it. We have a full position, 4 1/2% in the fund. We have it pretty well through our separately-managed accounts. >> Paul: thanks for the question. >> Thanks, costa. >> Paul: on constellation software. Let's go to elliott. What is your question to kim bolton, elliott? >> Caller: please, would you compare visa and mastercard. What would you buy today at what price? Thank you. >> Paul: thank you. >> Elliott. That's a whole program. [ chuckling ] I would actually -- well, let's see. When you look at mastercard you

have current -- visa currently trading at 277½. We have a 12-month price target of 315 and then with mastercard currently trading if you could just pull it up currently trading at 430, 460, and we have a 12-month price target of four just at that peak there at 490. So they both have reasonable -- and a lot of people actually do trades -- pare trades on this so the pair trade these days is long the mastercard and short the visa but it's sort of a flip of the coin right now -- pair. Good question, though, elly. >> Paul: thanks for the question on the two big payment processors. Let's go to vancouver, jim. >> Caller: Mr. Bolton, I am a first-time caller and a long time watcher and it's a great show. >> Paul: great. >> Caller: now about a year or so ago you recommended micron technologies, mu. And it's -- you recommended that about one or so years ago and it's had a nice run recently. Do you see any more up side over the next year? >> Thanks, jim, for the question. We have actually taken our profit, jim, on micron up at this level. Currently trading I think it's around 12 and the average analyst out there has a 12-month price target of 128. The whole semi side both when it comes to the designers and the foundries and so on, micron is a great example that they played both sides of it not only the manufacturing and the foundry side of it but they also do some of the designing, too. So I think there are -- you can probably go a little further down the food chain. Some of the equipment suppliers are still -- you know, when it comes to the semiconductor side there is the foundries, the designers, and then the equipment makers. There are some equipment makers like asml that does the lithography, the light side of the etching which is a great example. Another one which is -- we really like but it's a lot smaller is in to asteria, alab. Currently I think it's trading right around 75. We think -- it's a favourite for a lot of the big giants out there and they actually manage inside -- inside the cloud to actually make the chips more efficient, more effective and more energy efficient so we like that. When it comes to micron it's pretty fully priced right now. >> Paul: okay. Thanks for the question, jim, from vancouver. Let's stick to vancouver. Peter is on the line. Hi, peter. >> Caller: (coughing). >> Caller: sorry. >> Paul: okay, peter ASKs going to ask about palantir. What are your thoughts on palantir, kim? >> Caller: I think -- so it's currently trading right around just shy of 22. We actually just traded out of it it because the 12-month price target we have for it is about 23.75 U.S. so it's getting pretty close. It's really done fantastically well. Has two business. One side is the gotham that services the -- a lot of the government contracts that they get and then the foundry which is more for the private side. But you know the total addressable market for palantir here 119 billion with all the geopolitical events that are going on around the world a lot of governments are tagging them so they have also got pretty deep pockets from some of the private guys especially out of apollo. So I think peter around close to 21 and then 20 and then down at 19. (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. [ ] >> Paul: welcome back. Time now for past picks. We will travel back in time to july the 11th, 2023. So not quite a year ago. And one of kim bolton's top picks on that day was marvell technology ticker symbol mrvl on the nasdaq. You can see the numbers. A total return over that period of time of 13%. Kim. >> Yeah, we actually took some profit on this. It would have been back in february, march but then more recently we got back in because yeah, you can see how they reported. We got out not on the way up but on the way down. And then more recently we sort of picked it up. The guidance previously was a bit difficult. But so they reported back on march 7th. They pretty well met both the top and bottom line but then they guided below the estimates and that's what the problem was but it gave you a great opportunity. It just reminds me of shopify, right. Shopify took a 20% haircut and it gives you a great chance to get in. So anyway back to marvell. Marvell. So they are involved in sort of data infrastructure semiconductor solution particularly in the data centre but they have also expanded over in the last few years into a thing called this complex system on a chip. You know, normally in the past most of the computations have been done back in the data centre but now with the explosion of A.I. and the chips and more power that you have you can actually get those system on a chips out to the edge and actually into the devices. A number of companies have done well in that but marvell as a designer and a developer and a supplier of those circuits has really done quite well when it comes to the edge computing. You can buy it here around 74½. Buy another third just around $71 and then final third around 67. >> Paul: okay.

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