Top Companies Still Run By Founders
Founders have a vision, and those who are successful create an empire. Some of these companies, though established now, still have them as CEO. Many online platforms come to mind, such as Amazon’s Jeff Bezos, or Facebook’s Mark Zuckerberg. But there are other companies that are still led by their founder.
Canada has its fair share of entrepreneurs turned successful businessman. Another Canadian unicorn is Shopify, who has become a global leader in e-commerce. There’s also the family-run giants such as Couchetard, Dollarama and Saputo who’s founders still weighs heavily in decisions.
Here are the top companies still run by founders:
Shopify Inc. (SHOP-T)
A Canadian unicorn that’s grown to be the e-commerce leader. They provide a software platform for online commerce and retail POS systems. The have recently reported a sales growth of 45%, and it’s sure to keep growing as e-commerce spreads.
Phenomenal company that will do well for years to come, but trades at a huge multiple. Profits are small. Risk/reward is not there. He expects tech to lose its gold status over the next year, so this could fall 40%.
Evertz Technologies Ltd. (ET-T)
An electronic systems manufacturer based in Canada. Their technology is used for broadcasting and in the film industry. They pay a good dividend and are forecasting a 10% increase in earnings. Management is very good and they are a leader in the sector.
Price target of $15, so not much room left. SaaS in the film industry, which has had a difficult time. He'd sell a third. If it goes up, that's OK. If it goes down, at least you sold a third.
The company that is synonymous with social media. They’ve had some scandals, but the technology is hear to stay. They also own Instagram and WhatsApp. They are huge in digital marketing and advertising. Instagram is being touted as the next big thing for e-commerce as users are increasing using it to find items.
He gets a lot of questions about this and avoids it. He doesn't know how they get around these regulatory pressures. He prefers Google in the online ad space.
Twitter, Inc (TWTR-N)
The micro-blogging platform that is great for aggregating news and quick communication. Many experts say that the company is here to stay, but they need to update their monetization strategy. If they can figure out the advertising, this could be a good play on social media. Jack Dorsey, the co-founder and CEO of twitter, is also the founder of Square (SQ-N), a mobile payment platform.
In advertising on a social media platform, she'd rather be in Facebook, despite the regulatory threats. Also, Twitter had a weak previous quarter.
Netflix Inc. (NFLX-Q)
The online, on-demand content streaming service. They’ve moved into production of their own content, which has reaped big benefits. They are facing fierce competition with Amazon, Google and Disney but the company’s cash flow is improving. Their Q4 earnings were very strong, with 27% increase in revenue in the year.
They report Tuesday. They should have a ton of new subscribers, driven by the hit Korean show, The Squid Game.
GoPro Inc (GPRO-Q)
The company that created the GoPro action cameras. They shuttered their drone department to focus on video editing and their camera department. Their earnings have been having some problems, and a closer review is required of their product market as well.
(A Top Pick Jan 25/16. Down 1.98%.) *Short*. Shorted this because we were having momentum to the downside in the market. Also, this had a high valuation.
Nvidia Corp (NVDA-Q)
One of the biggest names in graphics processing units. They reached their high of $270, and they’re trading at $184.28 as of writing. Experts are expecting a move up soon. The stock price took a hit after missing on earnings. Since they are a chip maker, they coincide with the semiconductor market and tech sector.
Chip designer. Issues with current acquisition, execution risk. In the sweet spot of the industry. Semis are a unique place to be, strategically important globally and in the US. Semis are the core for a lot of technology. Not so much in the cyclical part of the industry. Will continue to do well.
Square Inc (SQ-N)
A mobile payment platform and merchant services aggregator. Their organic revenue growth is 53% year over year and they’re a leader in the space. The company is growing, with lots of potential still. The company’s founder and CEO is also the founder and CEO of Twitter.
They've expanded into loans to bus, P2P payments (their fastest business), and Bitcoin trading (the first to do so). The stock has pulled back 16%, so it's a buying opportunity for a long-term hold. He favours PayPal just slightly.
Paycom Software Inc (PAYC-N)
An online payroll and HR technology provider. They also provide data analytics. They’ve had a good track record of beating earnings. However, they are trading at 30-40 PE and is not cheap.
Paycheque companies are doing well. PAYC does payroll services. PAYC is okay and has pulled back. You can buy it.
The company that is a giant in the information technology sector. They’ve transitioned from selling physical items to software as a service. We featured this on our “the Top 17 Enterprise Software Stocks”, stock list. They pay a nice dividend, and their subscription base means good recurring revenue with high margins.
Alphabet Inc (C) (GOOG-Q)
The conglomerate created by Google. A good stock to hold long-term. They’re facing their own scandal in the EU with anti-trust concerns but the fundamentals are great, and they dominate the cloud space.
(A Top Pick Oct 14/20, Up 76%) Great play on online advertising and search. YouTube is doing well, cloud business is growing. Well positioned. Digital advertising will continue to grow. She recently bought on the recent pullback. You could start building a position here.
Dollarama Inc. (DOL-T)
The Chairman, Larry Rossy, who led the family run Quebec-based dollar store to an internationally recognized brand stepped down from the company in June 2018. However, he still holds majority stakes in the company and remains the executive chairman. The company is still in the family, being headed by Neil Rossy.
A great company. Owned it in the past. Sold it with the notion that the windfall from last year was not going to return. It was deemed an essential retailer when everything was closed. Same store sales comparisons are struggling due to last year. Has checked back a little. A slow and steady grower in…
Saputo Inc. (SAP-T)
Lino Saputo, the founder of the company, remains the executive chairman of the global cheese manufacturer. The company grows primarily from mergers and acquisitions. They are a leader in their space and are the biggest producer in many countries.
(A Top Pick Sep 24/20, Up 4%) Will benefit from the recovery. Safe dividend play. Dividend is relatively slight. Continues to buy for new clients.
Alimentation Couche-Tard (B) (ATD.B-T)
The fabled Canadian convenience store is still run by the founder and chairman Alain Bouchard. They continually add value for investors, and are growing through acquisitions. They are also a major distributor of gas and their integration of acquired service stations have been going well. They were largely spared from the pull-back last December, and are hitting their 52-week high.
PKI vs ATD'B They've done a good job rolling up fuel distribution. It's compared to ATD'B a lot, which he prefers because they're also in convenience stores as well as selling fuel--diversified. Also, ATD'B managers are phenomenal. PKI is too, but it's a different business. ATD'B allocates capital well in buying back shares and buying…
The most popular e-commerce and cloud computing company. Their cloud business continues to grow and everyone has shopped on them before. One thing to note, Amazon’s PE is quite high.
(A Top Pick Jun 10/21, Down 1%) You can buy it here. People are worried about supply chains and anti-trust, which is not a concern. Continues to innovate and grow. Huge player in AI. Large, embedded infrastructure. Huge free cashflow generator and invests that in the future. Outstanding value right now.
Boston Beer (SAM-N)
A leading brewer of beer. They’ve won more than 500 awards, and they have a huge market share on the craft beer sector. They recently jumped following a SmarTrend’s Buy recommendation.
(A Top Pick Jul 13/21, Down 22.8%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with SAM has gapped down through our stop. We recommend covering any holdings at this time. We will look for better opportunities.
Under Armour (UA-N)
The apparel company that’s most recognized by their sports line. Their stocks stumbled in 2017 and is now recovering slowly.
Tesla Motors Inc (TSLA-Q)
The leader in electric vehicles and clean energy. They are getting rid of their stores and cars will be purchased online. A lot of people believe in Elon Musk and he’s delivered quite consistently. This could have some volatility, but in the long-term, it is a great name.
He predicts a blow-out report on Wednesday. So brokerages, which have been raising their targets for Tesla.
Canopy Growth Corp. (WEED-T)
Bruce Linton leads the first cannabis producing company in North America to go public. They’re also the first cannabis producer that’s listed on the NYSE.The company has market support for capital, that has raised over $6 billion , with Constellation Brands taking a major stake in the company.
They continue to be challenged in Canada. They overbuilt growth facilities. What is more important is what they are doing with their US strategy. They have an option to own assets in the US if it becomes legal in the US. They also have a partnership for gummies. Starting to look at cannabis market has…
📦 Courier Services
An American multinational courier delivery company. They’ve pulled back quite a bit after they reduced their expectations for 2019. It’s been affected by macro events and the tariffs war. It is a quality name, with a buying opportunity.
Most sophisticated global logistics company in the world. Trading at 6x cashflow. Staffing shortage due to Covid is a short-term problem. Best global integrated supply chain as an alternative to AMZN or UPS. Yield is 1.32%. (Analysts’ price target is $304.80)