3 Companies Poised for Growth

These companies are on the move to provide returns for investors.

| More on:
The Motley Fool

In business, it’s often difficult for competitors to hit a moving target. The following three companies are not standing still when it comes to strategic growth initiatives.

1. Cogeco Cable  

Cogeco Cable (TSX: CCA) is the 11th largest hybrid fibre coaxial cable operator in North America. Its current focus for Canadian business customers is a revamp of its Internet packages for business. The company understands the need businesses have for reliable high-speed internet, in packages that fit business budgets. Cogeco recently introduced Cogeco Business Ultimate. It also offers Business Starter, Business 28 and Business Premium. Cogeco’s Business Ultimate offers download speeds of up to 120 Mbps and upload speeds of up to 10 Mbps.

Why is this important to investors considering Cogeco Cable? Because this initiative is geared at growing its business customer base.  Johanne Hinse, VP of Sales and Business Development for Cogeco Cable Canada, stated, “The demand for increased speed and better performance regarding Business Internet services is rapidly growing. Businesses are looking to increase their productivity and optimize their efficiency using an ultra-fast Internet connection.”

In 2013, Cogeco expanded its High Definition (HD) TV programming line to 150 HD channels in the majority of its important Ontario market. Moreover, Cogeco acquired Massachusetts-based Atlantic Broadband in 2012. Atlantic operates specific cable systems in Pennsylvania, Florida, Maryland, Delaware, and South Carolina. This is Cogeco’s opening into the U.S. market.

2. FirstService

FirstService (TSX: FSV)(NASDAQ: FSRV) operates in the real estate services sector. It provides services to commercial, institutional, and residential customers in North America and globally.

FirstService division Colliers International is a leading global company in commercial real estate services. Its strategy is to expand its market share in core markets and to broaden the services it offers. Colliers International recently acquired Briant Champion Long (BCL).  BCL is one of the UK’s foremost independent retail property specialists. Colliers UK will integrate BCL into its operations. The BCL acquisition is part of Colliers growth strategy in the UK. Colliers International has 482 offices around the world.

The company’s FirstService Residential division engages in residential property management in North America. FirstService is driving growth through its rebranding of all property management operations to FirstService Residential. Part of its growth strategy is selective acquisitions. In 2013, FirstService Residential acquired Curry Association Management (a division of Curry Investment Company), Missouri’s largest residential property management company. 

3. George Weston 

George Weston (TSX: WN) is involved in food processing and distribution and has two reportable operating segments: Loblaw (TSX: L) and Weston Foods.

To remain competitive, the company continues to invest in new and innovative products. George Weston is concentrating on maintaining or increasing market share in Loblaw’s core food and drug businesses. These businesses account for more than 85% of total revenue.

The Loblaw business launched more than 550 new control brand products in 2013 (product packaged for exclusive distribution in a given geographical area/specific markets). Loblaw brands include its popular President’s Choice products.

Loblaw recently closed its $12.4-billion deal to buy Shoppers Drug Mart. The acquisition resulted in 2,300 corporate, franchised and associate-owned stores across Canada and approximately 1,800 pharmacies. It’s the combining of Canada’s number-one grocery retailer and the number-one pharmacy/beauty retailers.

Galen G. Weston, Loblaw Executive Chairman, said, “The most successful partnerships are grounded in strengths that complement each other. Loblaw and Shoppers Drug Mart are perfect partners. We will drive growth and profitability through our unmatched mix of store formats, products and offerings. This is truly a case of the whole being greater than the sum of its parts.”

Foolish bottom line

Quality growth initiatives often foster greater sales and profits. These companies are focusing on strategic growth to bolster bottom lines. For investors, it’s worth considering proactive companies aggressively seeking increased market share.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

More on Investing

investment research
Dividend Stocks

Best Stock to Buy Right Now: TD Bank vs Manulife Financial?

TD and Manulife can both be interesting stock picks for today, depending on your investment style.

Read more »

A worker gives a business presentation.
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

These stocks are out of favour but could deliver nice returns over the coming years.

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

This 5.5 Percent Dividend Stock Pays Cash Every Month

This defensive retail REIT could be your ticket to high monthly income.

Read more »

Confused person shrugging
Dividend Stocks

Passive Income: How Much Do You Need to Invest to Make $600 Per Month?

Do you want passive income coming in every single month? Here's how to make it and a top dividend ETF…

Read more »

Canadian Dollars bills
Dividend Stocks

3 Monthly-Paying Dividend Stocks to Boost Your Passive Income

Given their healthy cash flows and high yields, these three monthly-paying dividend stocks could boost your passive income.

Read more »

ways to boost income
Investing

Are Telus and BCE Stocks a Smart Buy for Canadian Investors?

Telus (TSX:T) and BCE (TSX:BCE) have massive dividend yields, but their shares have been quite sluggish!

Read more »

investment research
Tech Stocks

Is OpenText Stock a Buy, Sell, or Hold for 2025?

Is OpenText stock poised for a 2025 comeback? AI ambitions, a 3.8% yield, and cash flow power make it a…

Read more »

Make a choice, path to success, sign
Dividend Stocks

The TFSA Blueprint to Generate $3,695.48 in Yearly Passive Income

The blueprint to generate yearly passive income in a TFSA is to maximize the contribution limits.

Read more »