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.
Stockchase Research Editor: Michael O'Reilly As consumers become more comfortable with online commerce, SHOP is well positioned to continue to see significant growth. It offers retailers an efficient way to sell directly and it collects recurring revenues through subscription fees. Earnings will be reported April 28 and the market expects EPS of $0.71 US and…
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.
(A Top Pick May 12/20, Up 49%) Of the megacap tech stocks, this is the cheapest at 25x earning with growth around 10-15%. Has a great base. The controversy will continue, but Democrats and Republicans hate FB for opposite reasons--which is the sweet spot.
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.
It's the dark horse for the 4th-largest ad platform after Facebook et al. They're finally doing the right thing to gather subscriptions and ads. He predicts these businesses will grow and become huge in a few years. Twitter is hard to value, but it's growing rapidly. The stock has run up too high, so buy…
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 usually beat their numbers and they enjoy talking about their business and forthcoming releases.
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.
Likes the semi-conductor name. Very much cyclical and we are seeing a supercycle. He would want to be in a name with AI aspects so NVDA would be his choice to put fresh capital into.
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.
The payments industry has a bright future, and SQ can grow for years. It's the easiest place to buy fractional Bitcoin through its app.
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.
Displaced Oracle in the cloud as the database of choice. It's about selling cloud services, like a utility. Margins are much higher on cloud than selling software. Over time, margins and free cashflow will go up. Not concerned about the valuation, because of growing business and 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 Aug 06/20, Up 49%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with GM is progressing well. We recommend trailing up the stop (from $1800) to $2000. This would all but guarantee a minimum return on investment of 33%.
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.
Allan Tong’s Discover Picks Dollarama sells cheap stuff and has enjoyed a near-monopoly on selling household goods during these lockdowns. No argument that DOL has done very well. It peaked December 9 at $54.58 November 1, just shy of its all-time high. DOL stock has since peeled back 10%. It continues to enjoy a strong…
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.
It is a good quality company and an industry leader. It has a dominant position. It is not the best use of a dollar today as others have better leverage to a recovery, but for 5 years it is a good holding. They are a good consolidator and the industry remains fragmented.
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.
(A Top Pick Apr 09/20, Up 17%) He has owned it for a number of years. They are a good consolidator. It has been perking up a little in the last few weeks. There are probably some short term headwinds for them with comparisons to last year as a lot of stores were closed and…
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.
It's picked up and retained new customers during the pandemic. Also, Friday its unionization drive in Alabama failed.
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.
They report Thursday. The shorts, as they always do, will lean against SAM, because of their competition. SAM should do just fine, he thinks.
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.
(Past Top Pick, May 10, 2018, Up 20%) Volumes are rising, the stock is coming alive and there's plenty of room for this stock to regroup. Those who have owned this since it's drop of the past few years will hold on now that it's starting to climb again, so they can get their money…
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.
They've built a fabulous brand, but this is a cult stock which doesn't support the stock fundamentals. Is it worth 95x enteprise value when GM is at 6x. There's danger in this high-beta stock. The stock price fluctuates a lot based on emotion.
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.
(A Top Pick Dec 09/19, Up 30%) Still likes this long-term, but he's now focused on U.S. weed names. He prefers other names.
📦 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.
(A Top Pick May 12/20, Up 160%) It's riding the e-commerce boom but also will benefit from the reopening. It's the proxy for economic growth and he believes the US economy will boom this year. Fedex is doing well in air freight as well, given fewer airplanes in the air now. There's lots of growth…