3 ASX stocks that were crushed on Friday

Friday's market was bad, but even worse for this trio

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 June 12, 2012 4:31 pm AEST

The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) fell 1.1% to close at 4,064 on Friday, as pessimism abounds. Europe's economic woes, China's slowing growth and a slow US recovery continue to dog markets globally. Locally, some companies have issues all of their own.

These three ASX stocks were crushed by 7.5% or more:

Energy World Corporation Ltd (ASX: EWC) was slammed 12.3% to close at 32 cents. The company has received three queries from the ASX in the last three months regarding the falling share price. While the company has no explanation for the most recent fall, I suspect that investors have had enough of the company's falling share price and lack of financial performance, and are jumping ship.

Qantas Limited (ASX: QAN) fell 8.5% to close at 97 cents, continuing the share price falls that have seen its share price halve from a 52 week high of $2.03, set in July 2011. The company issued a profit downgrade last week, blaming the European economic crisis, rising fuel bills and increased competition in the domestic sector. Qantas International is expected to report earnings before interest and tax (EBIT) loss of over $450m, compared to $216m in 2011.

Dart Energy Ltd (ASX: DTE) closed down 7.5% at 18.5 cents, continuing its perennial yo-yo swings. Just the day before, the stock had risen 8.1% on news that it had received government approval to drill pilot coal seam gas wells in NSW. According to a report in today's Australian Financial Review , Dart is currently trading at less than the cash on its balance sheet, which suggests investors expect the company to burn through some or all of its cash, as it continues drilling for coal seam gas.

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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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