TPG Telecom Ltd (ASX: TPM), Mantra Group Ltd (ASX: MTR), Platinum Asset Management Limited (ASX: PTM) and Vocus Group Ltd (ASX: VOC) shares should be on your watchlist.
Some might call them 'blue chip' companies because they have established franchises and respected brands. However, they are dwarfed in comparison to some local and international companies, so I still consider them mid-cap companies. Meaning, medium-sized companies.
TPG Telecom
TPG is the name of Australia's third largest telco, which has commanding stakes in the local broadband and home phone markets. TPG is founder-run, which is a big tick in my book.
The company's shares offer a 2.7% dividend yield and despite their track record for growth, appear to trade at a very reasonable valuation.
Mantra
Mantra is the $900 million hotels and resorts operator. In addition to the Mantra branded hotels, it owns Peppers and BreakFree. Like the entire hotel industry, the company is being rivalled by Airbnb and essentially sells a commoditised product.
Meaning, most consumers don't shop only for Mantra or Peppers hotels/resorts and would be happy to stay at a comparable hotel run by someone else if the price was right. Nonetheless, I would buy shares in Mantra at the right price — but not at today's prices. Therefore, they will stay on my watchlist, for now.
Platinum
Platinum is a $3.1 billion funds management business. It makes money by investing other people's' money for a fee. Platinum's success as a business will depend on its investing track record and marketing.
Fortunately, it has a strong long-term track record and is reinvigorating its business following a recent fallout with investors. Analysts are forecasting annual dividends greater than 5%.
Vocus
Vocus is the name behind telecommunications brands like Dodo, iPrimus, Commander and more. It's the smaller, uglier sister of TPG Telecom, according to some investors. Yet, the company is currently at the centre of a takeover battle.
While it is a higher risk investment idea, there is a lot to like about the company.
Foolish Takeaway
These four companies should be on the watchlist of every serious ASX investor. Not all of them are a 'buy' at today's prices, in my opinion. But if I were to pick one today it would be TPG Telecom.
