If you are seeking ASX dividend share ideas, try Mantra Group Ltd (ASX: MTR) shares, Vocus Group Ltd (ASX: VOC) shares and Thorn Group Ltd (ASX: TGA) shares on for size.
Vocus, Mantra & Thorn Group Vs. ASX 200
As can be seen in the chart above, each of these shares has significantly underperformed the broader market, or S&P/ASX 200 (Index: ^AXJO) (ASX: XJO), over the past year.
Vocus shares, for example, have underperformed the market by around 74% before dividends. Ouch!
But, as Warren Buffett famously said, "Be fearful when others are greedy and greedy when others are fearful."
What he meant was, savvy long-term investors are more likely to find a bargain investment when others are selling out of fear — which is what I think is happening right now.
However, a word of warning: I consider these three ASX shares to be high risk, so be prepared for volatility.
Vocus
Vocus is the owner of telecommunications brands like Dodo, iPrimus and much more. In recent times, the Vocus share price has been discounted heavily by investors who fear the company's valuation is too high and the telco industry is set for lower returns.
I also think the industry can expect lower returns going forward. However, five years from now, I suspect Vocus will be a more profitable company than it is today.
Mantra
Mantra is the popular hotel and resorts owner — in fact, it is Australia's second largest provider. It owns the Mantra, BreakFree and Peppers brands.
Mantra does not manage all of its properties. Instead, it makes a lot of its money via its central booking and management systems. Some investors fear Mantra is ripe for disruption by the likes of Airbnb, the global room-sharing service.
However, I think the current Mantra share price offers good upside for the risks involved.
Thorn Group
Thorn Group is a small-cap company, worth $220 million, operating in a tough industry. The short-term loans and finance provider — best known for Radio Rentals — is currently being crushed by concerns over poor lending practices and omnipresent government regulation.
While the company is expected to cut its final dividend I think Thorn Group shares should be on every savvy value investor's watchlist because they appear cheap at today's levels.
