BNN - Wednesday, May 22, 2024 - 01:00 p.m. (ET) - Segment #4

-If you'd like to invest along with us, visit us online or speak to your financial advisor today and ask for a copy of our offering memorandum. CapitalDirect.ca Welcome to the world of spycraft. (Dramatic music) Keep yours eyes glued to the action. Let's get down. Let's get funky! What are you concealing? You a communist sympathizer? (Whistles) It's just a job. Oh Canada!! their time has come Argentina have done it! One more Messi moment! Beyond glorious! Messi magic once again This is it...the stage is set That's what they came for!! And it is spectacular!! Derek. Meredith. with the brightest smile You're my person. take me where I've never been before on a cloud above So who wants to make history? A new episode of grey's anatomy thursday at 9/10 mountain on ctv. Catch up on ctv.ca and the ctv app 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. >> Let's get to the help. Paik said this time, it's tech. Of course. Nvidia reports its highly anticipated 1st quarter after the close. But our guest says if you don't own nvidia, microsoft, bots, micro devices is an excellent start to consider. We're joined by francisco as senior portfolio manager at fm investments fredo, thank you very much. Just before we get to get onto your 3 nvidia watch and investors be looking out for this option and whether reports. >> Well, I think definitely a hole that mean, I've seen some people trying sell today that's why that stock prices low today. But I will hold on to I think he has a lot more upside left as ai is not just a fad is a real as the real deal. That's a real revolution. Nvidia's new the leader of that pack. Hold on to and you know, you know, the goal of the short term volatility. >> Isabella, to hold right now for you, you wouldn't be buying more. >> I have I mean, if I wouldn't have enough, I would be in by a little bit more for sure. Yes. >> Okay, let's get some of the that job for as well. Let's start off with advance okay. Systems advanced micro devices and for solar. Let's start off sorry with the systems. Remind us what they do place. >> They're a a consulting firm basically specializes so far to go up many enterprise systems and so on. So think about them as being a big global shop with a lot of developers and they're going enterprise-level software. >> What's attractive I am because the stock has been under pressure lately. Yeah, I think little bit of overreaction. In the start to rise in the present, an opportunity for investors is a good entry point. It's it's a profitable company. Has a lot cash is sitting at about 2 billion in cash. >> And just because the short term prospects are not through the roof. I think longer term, it's going to be one of I've been beneficiaries. And that's one of the catalysts that has going forwd for it. So ai is not just about chips is about developing sober for the chips and so on. And you know, finding a waiting to drive them into the factories out into to purchase top lines >> And story just remind us why why were investors ticked off of the palm? I'm starting why why were investors selling the time, why didn't get hit with that downdraft. >> Well, I think it's just soft guidance, you know, and that's always a better trade

out there I think it's just a little to latino particular reaction to me that they've reported earnings, but their earnings and pretty much of district ations. >> Advanced doesn't get as much publicity as nvidia, but why do you see potential here? >> Because it's actually a and that he is the 600 pound gorilla in market and that industry. But on the other hand, it's really a mistake you know, everyone out there thinking as spending money it, just focus on nvidia chips, you need to diversify if you're worried about security, if you're worried about that kind of thing, the you're better open not just nvidia chips around in that case, amd is it's a it's great it's right next to a video is the second in line. And there's or that person to occasion along. I the is a good buy. >> Right, the stock at off its highs. But like so many of these names we'll let's do a pivot here for solar major player in renewable energy. What's attractive here. >> Many things, first of all, terms of a solar panel manufacturer and they have a competitive advantage and the sense they are sewing to utility companies as opposed to the residential market are and that sensitive to interest rates. And also the advantages that has because of inflation reduction act so those tax breaks really factor into operating margin very, very quick. But that's great and they also have a backlog of about all the way into 2030. So we're looking at a great company with high barriers to entry. You know, they really got their act together >> What about tariffs on chinese solar panels and solar equipment. I know the white house is trying to avoid penalizing american manufacturers who use that stuff. But is the trade tension on an overhang for first solar? >> No, I think it's a trace of tail. And this being an election year. No, you would think it may be a politically about donald trump or 2, when maybe he would. I take away the tax cut, the brakes, but on the other hand, he's very strong on on tariffs and it's probably going put tariffs on solar whatever. So in that case, a that china dispute is benefits a tailwind to a partial or >> I'm so sorry if trump wins, what about biden wins the presidential election? What, what, what would that mean? >> It would mean that inflation reduction act is not going to dismantle, is still going to be there. So they're still going to have those tax advantages going forward. So it's a win win, no matter who wins. That's interesting. Interesting for sonar, not new windsor police both have been kind of offer infanta just. >> Thank you very much indeed. Francisco very well. For instance, francisco senior portfolio manager at fm investments. Coming up, target stock coming under pressure and a gloomy outlook from the company discouraging investors are sentiment when it comes to consumer behaviour. Our guest says the stock still a buy and the sell off is overdone. That's up to the break. Familiarity is comfort.But you can't tap into fixedincome's full potential, without exploringthe full landscape. ( ) Go beyond the obviouswith a global perspective. Agf. Invested in Discipline. phone plans with lots of data, Virgin Plus is the obvious choice. So, is it necessary to use the selling power of adorably fluffy kittens? Is getting discounts on food, fashion and entertainment more enticing when they're in tiny costumes? Or is it cuter from them? (Cat meowing) Do we need all this to convince you? ( ) We don't. Because when you're choosing an affordable phone plan, the obvious choice is Virgin Plus. Obviously. ( ) ( ) The infiniti qx60 exemplifies modern luxury. With powerful suv performance, three rows of comfort, and a sleek-yet-daring design. ( ) Lease a 2024 qx60 from 0.99% apr for up to 24 months. Visit INFINITI.ca. ( ) If you're frustrated with occasional bloating or gas. Your body's giving you signs... it's time to try Align. Align Probiotic was designed by gastroenterologists to help relieve symptoms of irritable bowel syndrome. When you feel the signs... it's time to try Align/ The future is not just going to happen. You have to make it. And if you want a successful business, all it takes is an idea, and Now becomes the Future where you grew a dream into a reality.

The all new godaddy airo. Put your business online in minutes with the power of ai. Harvest Equal Weight Global Utilities Enhanced Income etf. The world's top utility companies in one etf, global Utilities and steady monthly income. Harvest ETFs, income happens here. Let's get more on target now have the stock near its lowest in 2 months. Same-store sales were down almost 4% in the latest quarter. >> Shoppers bought more beauty items, but they cut back on discretionary stuff, such as clothing butts. Target is sticking with its full-year sales and profit forecasts, is sounding also lets a cautious when it comes to consumer behaviour. Our guest says the selloff has over jon target by. We're joined by michael baker, managing director and senior analyst at da davidson and company. Thanks very much for coming on. But before we get your view on target, when do you think the stock is down today? Wasn't the cautious sounding forecast for consumer behaviour. >> Well, think in each last quarters there absolutely crossed the our investments with significant margin growth, even with sales down, some of was against lower margins from the previous year. But as an example of mask order, they may george and $0.10 versus and that's what it was all 48 or something along those lines really big bees and investors or you know, 10 expect for what on the to continue to happen. What happened in today's results, a pretty much exactly as expected, but they didn't the as much areas they were $0.3 light. And while the arbor in march and expand, it was like 4 basis points in hundreds of a sports, a previous awkward. So I just think it's a function of expectations probably getting a little bit himself based on the baby's last 2, three quarters. >> Your view on target is that it's a decent play on retail. >> Yeah, we we see it as a turnaround story right now they've become pure water. I've read and seen to to walmart and walmart have a better transit and we know that that's true, but that's in the most we want walmart as well. We just think they different purposes in a portfolio on target for a about 14 times for to which really are going to change very much again, therein lies and we think there on hospital says shows getting better. They were native in the quarter just reported. But problem positive were wheelchair positive not in may. Already showing june july will turn positive are pretty. Margins are still coming off of that low that they in 2022, which is 3 and a half percent. So we see it as a turnaround story training out in I >> What is unique about targeting mean if you have to compare them with wall. Marcia won't be the main difference. Us. >> Very different tournament is the merchandise mix. Walmart is core everyday basic needs. That's probably 65. 70% of their business, they do have some discretionary items, but wars, he's much more towards your everyday basic needs. Target is the office that they're probably 70% of discretionary, maybe 25 to 30% grocery dollar tries in need. So different shopping work. Well, a different virus. This is obviously environment that works better for walmart and we've seen and they're very good chance for sales trends targeted and a loss for orders. But again, we think that sort of start to recover. Now. >> That mean that target is marginally more economically sensitive in that you would think merchandise non grocery stuff would are discretionary. >> Yeah, I was marginally I it a lot off sensitive does another that's why they have underperformed in terms of stock price as the kids at we feel guys the last quarters. It does seem like in part because of the composite getting easier, but also partisan making some investors in price. And you know, things we are seeing starting to see those cell find out. >> Plus, the called walker go wrong with your csis. Say ad a serious downturn vote for at the american economy. Presuming that would be bad for every us retailer. >> Yeah, but it's a verified the right idea that we got for every jar whole lot better than others. Why we're probably continue to take your. So what was wrong to target these is that the same store sales don't turn around

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