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.
He added to his holding in the last quarter, still likes the chart. All software has had a correction in the past few weeks, but long-term rgowth stocks will move higher. (Analysts’ price target is $469.90)
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.
A Canadian tech company involved in broadcast equipment as well as software in cloud-based video-degined networking. They re-invest 10-20% of revenues into R&D to make sure they stay ahead of trends. The CEO/co-founder owns 65% of the stock. In Raptors games, the officials review plays on screens supplied by Evertz (Analysts' price target $19.25)
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.
Facebook vs Alphabet? He definitely prefers Alphabet as it is the dominate player in the online advertising space. It trades at only 20 times earnings and growing at 20% per year. A company of this stature with no debt and lots of cash. They will be buying back stock.
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.
Twitter has 336 million active users after purging a large portion of fake accounts and bots. Some investors were suspicious of this, but he sees this is an opportunity. Twitter has a very long runway--he's very bullish.
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.
Disney vs. Netflix over 10 years He owns both, but Netflix will see more grwoth as it penetrates internationally and doubling worldwide subscribers. They could expand into music and games. Disney pays a dividend, but Netflix will give you a higher total return. With Disney, be patient as they get into streaming, especially internationally.
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.
Camera manufacturer. This is one of those really, really hot IPOs. This company has gone from nowhere to taking over the world with their action oriented cameras. Stock has doubled from its IPO. A very expensive valuation, so you really have to believe that they can continue to grow the business and sell a lot…
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.
These stocks do well in Q4, and NVDA is the momentum player. October to February, this sector outpaces the benchmark return by 28%, coinciding with the semis and tech sectors. But last Q4, this fell along with the whole market. In 2018, this sector hit lows and have since started to emerge higher to find…
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.
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.
The chart looks great and they have been a consistent earnings beater. He likes the fin-tech space, but this is a smaller player. They also do data analytics. Over 90% of the date on servers globally has been put there in the last 18-24 months. It is not cheap with a 30-40 PE.
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.
Enter now at $137 and add to a position? He owns a lot for the long-term. MSFT has been going up for a long while. Occasionally, it consolidates or pullbacks? Not bad to buy it now. Nothing wrong with this chart.
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 21/18, Down 3%) It is part of his fund and has been flat for some time. On the back of government action that we are seeing from the tech world, Google looks fantastic. It is very interesting again. They are a leader in autonomous driving.
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, but have reached saturation in Canada. So, they are investing into Central America. Their valuation has declined from historic highs, but it's still elevated. Investors are watching their Central America move. He once owned this.
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.
Hasn’t looked at this in a while. Prior to this year it has been doing very well. He has very little exposure to consumer staples. Would prefer being in more cyclical areas such as financials, consumer discretionaries or technology. Technically he doesn’t find the stock very exciting. Fundamentally, it’s trading at around 20X earnings with…
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.
Why did it split? He owns this one and it has done well over the long term. He would buy again and it is fairly defensive. The idea of splitting allows smaller investors to get in and that is probably the idea here. He does not think it is a problem they split.
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 Oct 31/18, Up 9%) His target is $2,100. They is primed for continued growth. AWS is a powerhouse, unlimited. Even in the latest quarter they showed a big win in subscriptions. In a correction or recession, all Amazon has to do is expand their e-commerce margins and still do fine.
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.
Has been a lot of consolidation of beer companies globally and beer is starting to taste the same. They have a good quality product. Own about 20%-25% of the craft beer market. They win a lot of awards. Strong fundamentals.
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.
A higher growth story, but the whole group is at a valuation premium. Although the company is doing well today, if the growth model and valuations don’t come through, you are paying a lot today for what the company looks like a few years from now. That always makes her nervous in protecting capital.
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.
When you go to work, why park your car when it could be going around doing drive hailing, or making deliveries (self-driving). You could make enough money from this to make the monthly payments. They are getting rid of all his stores and you will have to buy the cars on-line.
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.
Pots stock are valueless. He believes in 2-5 years weed will be legal all across North America and will be mass-harvested, like oregano and thyme. It'll become an industrial commodity. Guys growing it in hazmat suits in greenhouses will look ridiculous soon. These companies don't produce, can't meet current demand. Run for the hills.
📦 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.
Would be a rare chance to buy Fedex. The stock price has been hit by tariff fears. Would be a buyer here at these levels, and they are experiencing good support here.