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.
Allan Tong’s Discover Picks SHOP (still on the U.S. version) was trading a month ago at $33.71 (Dec. 23), so the stock has already been rallying hard. The upgrade and fresh signal will inject even more momentum in the short term, and SHOP stock will get another boost if the U.S. Fed’s Jay Powell slows…
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.
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.
Shares exploded higher tonight after reporting after the bell. Meta showed growth for the first time in a long time with its core business, Facebok, shower user growth as it cuts costs (layoffs) and plans to dramatically cut costs in 2023. Even Reels is doing well. A very good quarter.
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, Inc. is the best and fastest place to see whats happening and what people are talking about all around the world. From breaking news and entertainment to sports and politics, from big events to everyday interests. If its happening anywhere, its happening first on Twitter. Twitter is where the full story unfolds with all…
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.
One of the better-performing big tech stocks. It comes down to the quality of their content like any film or TV studio.
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.
Semis were pummeled last year. Nvidia has a lot more beta than peers, but leads in innovation. Trades at 56x earnings, but innovation paves the way for runway. He likes today's semis upgrades and the outlook for the space.
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.
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.
Trimmed his position earlier this month because the CEO warned of sales weakness. They just reported: EPS beat and adjusted operating income also beat. Did excellent expense controls. Cloud computing also beat. Shares initially jumped but plunged after the CEO's conference call when he delivered weak guidance: revenue to shrink in cloud (4-5%) and personal…
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.
It is very very big and therefore hard to move the needle, but there are a lot of initiatives the company can do such as pricing, launching new services and getting into AI. The advertising component is cyclical and is the easiest place for companies to cut spending. There are one billion searches a day…
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.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. On several metrics, DOL trades close to the upper end of its 3-year valuation range. The range is pretty tight to begin with, with forward P/E ratios in the 24x and 29x range, excluding the pandemic crash ratios. Price to-sales ratio has ranged from 3.4x to 4.7x. The…
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.
Recovered nicely. Good stock moving forward. Good story and long-term track record. You can buy at these levels, buy more if it goes lower.
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.
They report today. It's growing well-known abroad. They've performed well in the past 5 years. Free cash flow has grown 15% a year and the dividend 22% annually. The family owners gave up their voting rights, so the stock is friendlier to investors. If there is a recession, they have a growing private label group…
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 still can't get costs under control. AWS, its cloud division has disappointing margins with growth slowing quickly. However its new CEO has signaled that they will get costs under control and if this happens the company could make a fortune. It could earn $4 per share in 2024.
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.
It reports Thursday. He expects declining numbers, especially their hard seltzer sales. He prefers STZ for its strong beer brands (which he owns).
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.
It's fallen a lot in the past year. He viewed it as a car company, but others saw it as a tech company, hence the disparity in valuation. They report tomorrow. He doesn't believe that their price cuts will increase sales volumes. Shares will probably rise 8-9% tomorrow on earnings. Remains volatile. Not a fan.…
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.
It is the biggest in the Canadian market and is moving into the U.S. market as well. He focuses on the U.S. market. An inventory of cannabis products is building in New York with some of it being the illegal variety.
📦 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.