BNN - Wednesday, May 22, 2024 - 01:00 p.m. (ET) - Segment #3

they're selling them and all of a sudden became lower quality became lower price and was simply meant to try generate more basics. That would be an example. I think of string not saying they're doing that at all. But as the revenues get larger, it becomes much harder to find that incremental purchaser as the price point remains elevated becomes much harder to stretch to an audience that's going to continue buying it. And so that's what we've seen historically. We watch for him stretched beyond their 4 healthy. Well. And that's what you want to look for. That's when you want to figure as it's going to be another. 90 where they have a tremendous amount of or is it going to be diversion? A to pick on michael course that we brought in on court to gather you watch very big brands. Come back down to the saturation binding. That's what we think about brands in general. Not release specific but brands in general. That's what we're looking for, healthy revenues as we've trained to chase revenues, but not all revenues are good thing. Do they have global potential of being can they replicate their success in north america and europe in asia? I mean, into other fresh countries are, could they be running up against barriers there? >> It's a great question because it's sort of easy question to answer yes, right here talking a lot of the answer there is yes. How do I know he's already doing it. So you brought up that there are 10 to 11 million will be just under 11 million dollars or so total revenues this year call high single-digit billions of that initiative. That will be no be america's, which means you've got another 2 to 3, does not. They are doing a very nice job. It very nice business extremely and I think it will continue to grow up. Question is how large and the question I think from a staff perspective is how much do you want to pay for international opportunity, if you're worried about domestic, if north american continue to grow. This selloff is going to approve a great opportunity. It cannot, it's just, it's going to be the beginning. And I think that's part of the equation. We have route that's the market perform because they think they said a very important point in their history. But your question internationally, there's any reason they should be able to have a nice international business. We better jump semyon. Thank you very much. Indeed. You gave yeah, some food food for thought there on the could to be running up against that invisible barrier. Thanks a million. >> Simeon siegel, managing director equity research at bmo capital markets. Coming up a, there are concerns that canada is falling behind in the ai race. We are going to get bruce croxon to weigh in on the debate. 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73% of businesses in canada have no to use ai or leverage ai or or, you know, or make use of this wonderful new technology. So how about 2.4 billion on promoting entrepreneurship use of ai, but not reinventing the wheel that already exists. That is is is open source and wide open for our companies to take advantage of 50%, however you want as we take advantage of our language modules that we have proprietary access to because they're our own companies. So that's, that's sort of the short version of get 2.4 billion. Thank you very much but not on hardware chips, things that are, you know, we're we're already behind the 8 ball on is this complacency by canadian corporations? Yeah, I think it the 74% stat. It really is like we're almost asleep at the you know, there's a whole conversation. We can have this to whether I am come across a new technology yet that overhyped at the beginning are delivered, right? So maybe paying predicting you know, there's that we can discuss that. But no, I think where we are in danger of falling having said that, a lot of the brains and intellectual capital have come out of this country to drive. What progress ai has, you know, it chief so far. So we're right there, right? We're right there. If we wake up, take advantage of what we have in our own backyard. And I just think, you know, the government well-meaning it as it as it may be, is just a little bit behind right in terms thinking it through and you know, listen, it's a new technology, it's not a simple technology. It's moving very quickly. So I'm not assigning blame and I'm not passing judgment, but we do need to refocus on the things that are going to make us when she, I suppose governments love coaching red buttons and saying we're spending all this money. I'm not sure they know what they're doing it when it comes to the 2.4 allocation of of this particular bucket. Having said that is we're talking here, maybe they're huddling in realizing that, you know, with all the recent announcements from the big tech companies in the states, that that is not a good, you know, use of the 2.4. hope springs eternal there. Kind I know this is a whole other debate, but this guy, this question of forcing pension funds or encouraging them to invest more of their money in this country, is not part of a truly be looking to our pension funds to support ai directly, you know, it, it's, it's, it's a great pension funds by their nature, I think are in the business of making sure their constituents get looked after when they retire. Right? So it's, it's incumbent on them to back the funds or direct investments that are going to return the best percentage for the, their, their funds. So any mandates to have to force it on canada, I think is very short-sighted and is is, is, is not free enterpris in my view. So no, I do not think the solution is there. How about this? We get so good at leveraging the, the investments we've already made. We get so good at applying ai to what we've already done that with the help of 2.4 plus billion into the sector. Education entrepreneurship that the canadian pension funds can't help but say hey, you know what? Best place to invest in ai is right here at home in canada. There's that alternative vision for more positive one more because bruce, thank you very good to see croxon, co-founder of round 13 capital. Coming up. We are going 0 in hot picks and the tech sector. Stick with us. 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. At Odyssey Trust, we're more than just a transfer agent. We're on a mission to deliver peace of mind by making things simple, fast and easy. We're proud to be the trusted partner of over 1000 clients in Canada and the United States. Take advantage of historically high yields while reducing risk. Td Asset Management offers a large suite of active and passive fixed income investment solutions that can provide income and stability to your portfolio. Td Asset Management. -If you're looking for an investment with a strong, consistent track record, maybe it's time to look at a new approach. -Last quarter Capital Direct investors saw a return of over eight percent. That's impressive. It feels good to help Canadian homeowners accomplish their dreams. Find out why so many people have been trusting Capital Direct for over sixteen years.

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