DailyHive recently published a report about Canada’s most admired companies. The results are from the 2019 Corporate Reputation Study conducted by research firm Leger and intended to to see which brands Canadian consumers admired.
Favorite companies are usually growing and interesting investment options. Most of these companies are publicly traded on the TSX, the NASDAQ or the NYSE. Discover the companies most admired by Canadians with expert opinions on the stock :
Canadian Tire Corporation Ltd (CTC-T)
A great Canadian retail stock. They have integrated well their acquisitions of Mark’s and SportsCheck and are a leader in the sports business in Canada. Their balance sheet is healthy and they have raised dividends. Seasonally, their period is from January to mid-April.
It had a very good run and had a bit of a dip here. The worst for Canada has been seen from an energy price perspective. The retail area is economically sensitive and hot hit.
Dollarama Inc. (DOL-T)
A strong cash flow generator. They are a growth company that are still adding stores. They got hit in the December correction and have been going sideways but this could be a good investment in the long-term.
The chart is dizzying! He regrets not buying the breakout, but now it's returning to its old resistance with lows of $50 and highs of high-$50s. That's the zone. It could pause here, but sell it in this range. A lot of shareholders bough this at $50 and want to make their money back.
Loblaw Companies Ltd (L-T)
A defensive name you want to have in case of a recession. Their acquisition of Shoppers was a success and has been seen positively by investors.Consumer stocks are becoming more popular as investors adopt a more defensive strategy.
He fears that the grocery sector will get disrupted. Not optimistic. Loblaw has spent so much on beautifying their stores, but failed to earn a sales increase from consumers. Meanwhile, people are buying food online with the Amazon-Whole Foods deal.
Another defensive name. They produce cereal and snacks that are very popular with Canadians. They pay a nice dividend. They purchased Pringles a couple of years ago, and are trying to diversify their offerings.
His model price is $39.73, a negative 25% differential. Cereal companies always trade above his model price.
The most popular e-commerce store. They have activities in retail, cloud services and is well diversified, touching many sectors. They are growing their cloud services. Investors are looking at it closely as their valuation has been coming down, and they are still bullish on e-commerce.
He would be a buyer. They are a great company with multiple businesses under one roof. These also subsidize the build out of the existing business. They are a top player in Cloud technologies. Prime adoption numbers are increasing. One-day shipping may require additional costs, but this will open the door perishables in the near…
Costco Wholesale (COST-Q)
They have a great balance sheet and keep producing great results. They are driven by memberships. The valuation is a little high so we would buy on weakness. Many analysts think that Costco is resistant to Amazon although they need to bulk up their online presence.
One of the few retailers battling against Amazon, due to their loyal customers. They make all their money on memberships -- making only 17% margin on products sold. He likes their business model and expects them to do well even during a prolonged Chinese trade war.
Alphabet Inc. / Google (GOOG-Q)
Much of the internet is accessed using Google by Canadians. In addition, google home devices have penetrated many households as the smart device of choice. Combined with their android operating system, Google/Alphabet is used by most Canadians on a daily basis.
It is his largest holding. It is a stable growth stock. Nothing has changed since his last show except they have done better after their last results were results. They are growing 20% on the revenue side. They still have great margins and cash on the balance sheet is just going to keep growing. It…
Sony Corp. ADR (SNE-N)
Their activities include technology, games and movies. The most important products are the PlayStation consoles, cameras and their entertainment segment. There are some people who are very bullish on their content department.
One of the world's giants in consumer electronics. Very fine company. Starting to see the old stodgy management change. There's an American who's running it now.
A driver of the online world.They have a solid balance sheet and are performing well. They are moving towards becoming a software service company. Microsoft also enjoys a healthy installed base with high recurring revenue with low cost. They pay a nice dividend that will grow.
AMZN vs MSFT? AMZN is a great company, but he has been out for about 12 months as they are trying to figure out their operating expenses. He will continue to watch it, but there could be some regulatory overhang yet to come -- especially for their web services. MSFT has moved to cloud services,…
Samsung Electronics (005930-KRX)
Canadians love their phones and they’re one of the largest smartphone manufacturer and a huge producer of smartphone components. They generate great cash-flow and pays a nice dividend for an Asian company. Around 50% of their revenue comes from phones and chips.
(Samsung on the Korean Exchange) Great company. Generates a significant amount of free cash flow that they can reinvest in innovations where they are a leader. The leader in the Android device format. Also, have a semiconductor side of their business, which has been doing okay but it looks like it is ready to ramp…