ARB Corporation Ltd (ASX: ARB) shares, XERO FPO NZX (ASX: XRO) shares and Blackmores Limited (ASX: BKL) shares are worthy of a spot on ASX investors' watch lists, in my opinion.
ARB Corp
ARB Corp is Australia's leading bull bar and 4×4 specialist. Chances are, you've seen the red logo on the front of four wheel drives and on the side of canopies. ARB is named after its founder, Anthony Ronald Brown.
The company has continued in the family name over many years and is now taking its product abroad to the USA, the Middle East and Europe. At today's prices, the company's shares appear a little expensive but given its strong brand, dividend increases and stable balance sheet, it may be worthy of a small position.
Xero
Xero is the Kiwi software company, taking over Australian accounting practices. The company prides itself on "beautiful accounting software" and it seems accountants agree.
While the $3.5 billion company may be up against tough competition in the US, its Kiwi, Australian and UK businesses appear to be ticking along nicely.
Blackmores
Shares of the leading vitamins producer, Blackmores, have fallen heavily over the past year as investors reacted to concerns from China and its infant formula business.
While the announcement that long-running CEO Christine Holgate would depart Blackmores for Australia Post may have come at the wrong time, she will be leaving the company in a much stronger financial position.
Although Blackmores is arguably a riskier company given its international expansion, the recent decline in its share price means that it is offering a bigger dividend yield and its shares trade at a more compelling valuation.
Buy, Hold or Sell
Shares in these three companies do not come cheap as they are very high quality and have enviable track records for growth. However, with a very long-term view (five plus years), investors may be willing to start a small position in each company at today's prices.
