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BNN Market Call – January 11, 2018 – Past Picks

David Driscoll BNN Market Call


Is a conglomerate focused on five areas: life sciences, diagnostics, water quality, product ID and dental. Each has high barriers to entry. The company acquires firms and changes the business structure to reduce costs and increase margins, providing solid free cash flow growth which leads to higher annual dividends and, ultimately, a higher long-term share price.

  • Then: $87.50
  • Now: $98.56
  • Return: 12.64%
  • Total return: 13.36%

Provides comprehensive payroll and integrated human resource and employee benefits outsourcing solutions for small-to-medium-sized businesses in the United States. For every quarter of a percent increase in rates, the company makes US$3M or US$0.01 a share in profits just by investing the float set for remittance to the IRS from payroll taxes. The recent corporate tax cut from 35 per cent to 21 per cent should provide Paychex with ample cash to continue raising its dividend aggressively.

  • Then: $62.56
  • Now: $66.86
  • Return: 6.87%
  • Total return: 9.50%

Dassault Systemes (DSY.FP)
Provides a variety of computer-aided design, manufacturing, engineering and product lifecycle management (PLM) software that firms use to create, model and test designs. From original idea to finished product, Dassault’s software is the creative tool. Recent acquisitions have included firms with artificial intelligence experience to further improve the design experience for their clients.

  • Then: $76.81
  • Now: $91.22
  • Return: 18.76%
  • Total return: 19.52%


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