The TPG Telecom Ltd (ASX: TPM) share price has been an extraordinary performer in 2020 so far. TPG shares are up more than 23% year to date, compared with the S&P/ASX 200 Index (ASX: XJO) which is still down around 13% from where it started the year.

In contrast to TPG, the Telstra Corporation Ltd (ASX: TLS) share price is having a pretty average year. Telstra shares have more or less tracked the ASX 200 and are down around 11.5% year to date.

But despite the disparity in these 2 companies’ fortunes in 2020 so far (not to mention the excitement TPG has been generating of late), I would much rather buy Telstra shares today for a long-term buy.

Why TPG shares are outperforming in 2020

TPG shares have been benefiting from a perfect storm in their favour. Firstly, the long-proposed merger between TPG and Vodafone has been green-lit by the Federal Courts. This was despite the ACCC attempting to block the marriage on competition grounds.

The two companies are set to become one over the next few months, which will also involve a hefty special dividend and another spin-off of TPG’s Singapore operations.

Investors are liking what they see here, and have subsequently pushed up TPG shares over the last few months.

Why Telstra shares are a better bet

Despite all this exciting news, I’m still betting on Telstra as an investment. TPG is a well-run company with a great CEO and a great brand. However, I still don’t think it has the firepower to really compete with Telstra. Telstra already commands a significant pricing premium on its mobile data products in the current market. It is able to do so (in my view) due to the superiority of its network coverage.

Many people go with Telstra because other providers simply can’t offer the coverage that Telstra can.

Telstra has a very well-known brand which I think is superior to all of its competitors in attracting and keeping customers.

The company also offers more dividend potential that TPG. On current prices, Telstra shares come with a trailing yield of 5.05% (taking into account Telstra’s special nbn dividend payments).

In contrast, TPG shares are only offering a 0.61% trailing yield on current prices. Even if you threw in the prospect of a post-merger special dividend, Telstra is still more attractive to me.

I also expect Telstra to be the market leader in the new 5G technology. Since the Chinese giant Huawei was banned from operating 5G networks in Australia, TPG has fallen behind in the 5G race. Thus, I would still bet on Telstra’s heavy investment and brand power to carry it over the line first against TPG, Optus or any other competitor.

Foolish takeaway

TPG is a great company and one that has been especially lucrative to own in 2020. However, going forward  I think Telstra will make a better investment overall, and that’s why I would rather buy cheap Telstra shares today than TPG shares despite them being near their 52-week highs.

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• ASX 200 down 2.2%: Westpac tumbles, TPG reveals special dividend plans
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Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post What would I rather buy today: TPG or Telstra shares? appeared first on Motley Fool Australia.

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The Holista CollTech Limited (ASX: HCT) share price is bucking the wider market sell-off today after the company announced the acquisition of an advanced skin ingredient.

Holista CollTech is a natural wellness company that operates across 3 main divisions: dietary supplements and personal care, food ingredients, and ovine (sheep) collagen.

In the recent COVID-19 environment, the company’s personal care division has been in the spotlight.

Holista has a global collaboration with Path-Away, a plant-based solution that has been proven to kill a broad spectrum of microbes. The solution is an active ingredient in Holista’s proprietary sanitiser, NatShield, which is also being developed as a nasal balm.

Back in April, Holista announced that Path-Away had been tested in the UK and was found to be more than 99.99% effective against the feline coronavirus, a surrogate of COVID-19. 

Why is the Holista CollTech share price climbing today?

This morning, Holista announced it has fully acquired the technology of Protectene from Global Infection Control Consultants (GICC), the same company that develops Path-Away.

Protectene is a skin stabiliser for cosmetic applications that maintains all the basic features of Path-Away. However, it is a special formulation that reportedly lasts longer and is more gentle on the skin.

Additionally, Protectene has been developed to sanitise the human skin, including nasal membranes. This makes it relevant for Holista’s nasal balm which is currently under development.

As such, Protectene will be included in all future formulations of NatShield for personal use, including the nasal sanitising balm.

Under the agreement, Holista will now own the trademark Protectene and all the rights to use it, including the domains. In terms of production, however, Protectene will still be manufactured by GICC at its exclusive facility in South Carolina.

As part of the deal, Holista intends to grant GICC two million options with an exercise price of 20 cents each, expiring 31 December 2020. However, this is subject to shareholder approval at Holista’s upcoming AGM which is likely to be held in the last week of July.

Management commentary

Speaking to the differences between Path-Away and Protectene, Dr Arthur Martin, president of GICC, said:

“While Path-Away has applications for a myriad of uses – human, veterinary, agricultural and environmental – and spans many industries, Protectene is designed specifically for human skin, making it ideal for those with sensitive skin or part of the human body such as nasal membranes.”

And as for Holista’s plans for Protectene, CEO Dr Rajen Manicka said:

“We intend to offer ProtecteneTM as a more specialised ingredient that uses it exclusively for the NatShieldTM brand . We are confident that Protectene will be a unique differentiator.” 

At the time of writing, the Holista CollTech share price has jumped 3.70% to 14 cents per share. This rise takes the company’s current market capitalisation to around $38 million, while year-to-date gains are sitting at 77.22%.

More reading

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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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While the market weakness we have experienced this week is disappointing, I believe it is an opportunity for investors to buy shares at more attractive prices.

Two ASX shares which have pulled back notably this week are listed below. Here’s why I would buy them:

Bravura Solutions Ltd (ASX: BVS)

The Bravura Solutions share price has fallen over 8% this week. This means its shares are now trading almost 27% below their 52-week high. I think this is a buying opportunity for long-term focused investors. Especially given Bravura’s strong growth potential and attractive valuation.

Bravura is provider of software products and services to financial institutions. These include major institutions such as BNP Paribas, Fidelity, and Mercer. Arguably the key product in its portfolio is the Sonata wealth management platform. This high quality platform allows its users to connect and engage with their clients anytime, anywhere, through computers, tablets, or smartphones. It also simplifies legacy client systems into one unified customer-centric solution.

Combined with recent acquisitions, which have opened it up to new and lucrative markets, I believe the future is very bright for this growing company.

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price is down over 11% since this time last week. I think this is an opportunity for investors to buy the shares of one of the most promising healthcare companies at a fairer price.

I’m a big fan of the infection prevention company due to the strong growth potential of its trophon EPR product and the upcoming launch of new products targeting unmet needs. In respect to the former, the trophon EPR disinfection system for ultrasound probes is regarded as the best in its class. At the end of the first half its installed base stood at 22,500. This represents just under 19% of its global market opportunity. I believe this footprint can grow materially in the future and drive strong unit sales and recurring revenues from the consumables it requires.

Furthermore, the company has revealed that the secretive new products it has under development have similar market opportunities. In light of this, I think Nanosonics is in a fantastic position to deliver strong sales and earnings growth over the next decade.

More reading

• 2 red hot ASX growth shares
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• Why I’d buy Appen and these ASX growth shares for the 2020s
• Could these ASX shares be the future dividend stars that make you rich?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Bravura Solutions Ltd and Nanosonics Limited. The Motley Fool Australia has recommended Bravura Solutions Ltd and Nanosonics Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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