3 ASX stocks that rode the market

ASX ends up slightly, but these three large caps did much better

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 6, 2012 5:09 pm AEDT

The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) has added 0.2% today, to close at 4,484.8. Sectors were mostly in the green, with health care and gold both up 0.6%, while telecommunications was the only sector to fall, losing 0.3%.

The Australian dollar has soared against the US dollar, currently buying 104.3 cents, after the RBA's decision to leave rates on hold.

These three large cap stocks trumped the market.

Coca-Cola Amatil Ltd (ASX: CCL) added 1.6% to close at $13.28, more than reversing falls over the past two days. Generally viewed as a defensive stock, the drinks bottler has likely been in big demand by investors seeking safe stocks with a decent dividend. That has seen the company's share price rise 15.4% since the start of this year, although it has fallen back below $14 since early October.

Property play, Goodman Group (ASX: GMG) also posted a 1.6% rise, and ended at $4.48. Mainly focused on industrial property and funds management, Goodman has seen its share price rise 20% over the past three months, as demand for A-REITS (property trusts) increases. After several spectacular failures during and after the GFC (Centro), investors had shunned property trusts, on the basis that they were highly leveraged, opaque, risky assets to own. Many A-REITS have taken steps to de-leverage, by selling off assets, reducing debt and getting back to their roots, and therefore becoming more attractive for investors.

Newcrest Mining Limited (ASX: NCM) added 31 cents, or 1.2% to end at $26.10. The gold miner has seen its share price fall from above $29 since the beginning of October, as the price of gold slumped. A run of missed production targets and accusations of failing to conduct proper due diligence on its acquisition of Lihir Gold in 2010 haven't helped either. Trading on a prospective P/E of over 18, and with a return on equity of just 8%, there are far better opportunities in the sector – although it appears some investors may seem some value in the stock – hence the rise today.

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.

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Motley Fool writer/analyst 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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