3 ASX stocks that beat the market last week

During the worst week on the ASX in ages, some companies bucked the trend

Mike King

Mike King is a Fool.com.au Investment Analyst and Writer. He caught the investing bug more than a decade ago, at a time when the U.S. had invaded Iraq and fear reigned in the markets. His initial success as the markets took off encouraged his passion and thirst for knowledge. With 13 years behind him at one of Australia's largest domestic banks, Mike's passion for stocks led him to join a boutique funds management firm, where he stayed for four years. A seven-year stint in equity research at one of the largest investment banks in the world followed that, giving Mike a thirst to pursue his passion further. Mike holds a Diploma in Applied Finance and Investment and a Graduate Certificate in Financial Planning. His passion is to help retail investors invest better, and that passion was one of his primary reasons for joining The Motley Fool Australia in late 2011. Mike has written thousands of articles since joining, including for Fairfax Media, Yahoo!7, Ninemsn and has also appeared on ABC's The Business. You can see all of Mikes' holdings here

Published May 22, 2012 10:25 am AEST

The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) fell by 5.6% last week, to close at 4026.5, as ongoing issues in Europe continue to dog the market.

These three stocks managed to top the S&P / ASX 300 Index (Index: ^AXKO) (ASX: XKO) list of risers, although takeover offers certainly help.

Industrea Limited (ASX: IDL) rose 45.6% to close at $1.23, after receiving a takeover offer from US giant General Electric (NYSE: GE), valuing the shares at $1.27. Mining equipment manufacturers appear to be all the rage, with Danish company FL Smidth taking over Ludowici Limited (ASX: LDW) in March 2012, and Essa Australia Limited (ASX: ESS) in 2011. Could Bradken Limited (ASX: BKN) be next?

Hastings Diversified Utilities Fund (ASX: HDF) was up 12.8% to close at $2.38, after receiving two bids for the business. Pipeline Partners Consortium made a bid of $2.38 a share on Tuesday, trumping rival APA Group's (ASX: APA) bid of $2.06. Investors are obviously hoping for a higher bid, with the share price closing higher than the latest bid.

Buru Energy Limited (ASX: BRU) gained 5.4% to close at $2.75, continuing its strong run over the last 6 months. The share price is up 150% since November 2011, thanks to the first significant oil discovery in the Canning Superbasin of Western Australia since the 1980s. The oil field appears large and therefore has potential to contain significant reserves. Buru holds over 83000 square kilometres over the most prospective parts of the Superbasin. An independent assessment 2 weeks ago estimates that the Valhalla area of the Superbasin could hold up to 15 trillion cubic feet of gas and 432 million barrels of liquids.

Other notable risers for the week included Growthpoint Properties Australia (ASX: GOZ) up 4% to $2.15; Australian Agricultural Company Limited (ASX: AAC) up 2.5% to $1.24 and STW Communications Group Ltd (ASX: SGN) up 2.1% to 96 cents.

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Motley Fool contributor Mike King doesn't own shares in any companies mentioned. The Motley Fool's purpose is to help the world invest, better. Take Stock is The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it's still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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