3 ASX stocks that crushed the market on Friday

ASX ended flat on Friday – but tomorrow looks exciting!

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 November 5, 2012 11:29 am AEDT

The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) closed flat on Friday, after an early spike, closing at 4,460.1. And that's despite strong gains on Wall Street the previous night, with the Dow Jones Industrial Average and the S&P 500 both up more than 1%.

The Australian dollar was up again versus the US dollar, currently buying 104.1 cents.

These three stocks trounced the market.

Ten Network Holdings (ASX: TEN) climbed 9.3% to close at 29.5 cents, a day after selling its outdoor advertising business, Eye Corp, for $113 million to CHAMP private equity. The shares may also have risen on hopes of a takeover, after one of its major shareholders, Perpetual Limited (ASX: PPT) sold out of the company. With several media billionaires already owning shares in Ten, they could be right.

Drillsearch Energy Limited (ASX: DLS) added 7.8% to end at $1.595, after the oil and gas company announced that it has secured majority ownership of fellow Bowen Basin driller, Acer Energy (ASX: INP). Drillsearch has been producing oil for some years now, but production is expected to accelerate in 2013, with the company targeting 1.3 million barrels of oil equivalent. The acquisition of Acer could boost that even further.

Boart Longyear Limited (ASX: BLY) rose 6.3% to end at $1.525 as the big miners rose almost 2%, and mining services companies benefitted. Boart had seen its shares heavily sold off in September, after the company gave a weaker outlook than investors had expected. The share price has fallen 35% since August, and claimed the company's CEO. Still, directors have been buying shares in the company recently, and Boart is expected to report earnings per share of more than 30 cents in the 2013 financial year.

The Foolish bottom line

If you thought last week was exciting (wasn't it?), this week we have a blockbuster Tuesday. Not only is it Melbourne Cup day, but it's also the day the Reserve Bank of Australia (RBA) release its rates decision – with many expecting a cut the official rate. Apparently 1 in 3 Australians are expected to be glued to the TV that evening, when the $100 million OzLotto jackpot is drawn, while Tuesday night, our time, is US election day.

If you only invest in one company this year, make it our "Top Stock for 2012-13". Operating in two hot markets — one set to double by 2012, the other predicted to grow 5x over the next five years — this stock is a solid growth play that also boasts strong recurring revenue, zero debt, and lots of cash. Get its name and full research case in this brand-new FREE report.

More reading

Motley Fool writer/analyst Mike King owns shares in Drillsearch. 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.

Automatic Renewal

By taking up this offer, you will also be enrolled in our auto-renewal program, which is our way of making your ongoing subscription easier by ensuring uninterrupted service. Don't worry, though – you're not locked in, and can cancel your auto-renewal at any time before each 'anniversary' date without question or penalty.