3 ASX stocks crunched by the market

ASX falls 0.7%, but these three fared even worse

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 8, 2012 6:35 pm AEDT

The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) dropped 0.7%, to close at 4,483.8, reversing yesterday's rise. The move followed the US markets down with the Dow Jones Industrials Average falling over 2.3% overnight, while the UK's FTSE 100 slumped 1.6%.

The Australian dollar is steady against the US dollar, currently buying 104.1 cents.

These three stocks were crunched, falling more than 5%.

Cabcharge Australia Limited (ASX: CAB) dropped 7.8% to close at $4.71, continuing yesterday's fall, after the company announced yesterday that it was unsuccessful in a re-tender for two bus contracts in NSW. That shows that just because the company held the contract previously doesn't mean it automatically gets renewed. It also didn't help that Morningstar put the stock under review, stating the lost contract will impact earnings forecasts.

Coalspur Mines Limited (ASX: CPL) fell 6.3% to end at 81.5 cents. A perennial yo-yo stock over the past few weeks, Coalspur is developing a coal mine in Canada, but is at the mercy of commodity prices. Coal prices have fallen dramatically in recent times, and the miner is still faced with costs of developing the mine, estimated at around C$1 billion. Whether the mine will go ahead or not is yet to be seen.

APN News & Media Limited (ASX: APN) lost 5.8% to close at 32.5 cents. The media company with publishing, radio and advertising operations has seen its share price more than 83% since the beginning of 2011, as the advertising market fell off a cliff and hasn't recovered yet. As a print media publisher, the company also faces structural threats to its business, and has yet to fully adapt its business model to the online space.

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 owns 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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