3 ASX stocks slammed today

ASX drops again, but not as far as these three stocks

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 9, 2012 4:41 pm AEDT

The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) has dropped 0.5%, to close at 4,462, following the lead of global markets overnight. The Dow Jones Industrial Average fell 0.9%, while the S&P 500 lost 1.2%. The UK's FTSE 100 index was also down, losing 0.3%, as concerns of Greece re-emerge (again), and investors fret over the US fiscal cliff, looming early next year.

The Australian dollar is steady against the US dollar, currently buying 104.2 cents.

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

Emeco Holdings Limited (ASX: EHL) saw its share price fall off a cliff, losing more than 16% to end at 51.5 cents. Emeco supplies mining equipment to contractors and miners, and today revealed that slowing activity in the Australian market would result in its net profit for the first half of financial year 2013 falling. The company now expects to report a profit of between $23m to $26m – compared to last year's $29.2m. The company has also dropped its capex requirements from $120m down to around $80m.

Origin Energy Limited (ASX: ORG) fell 5.7% to close at $10.42, after the company announced a shock earnings forecast downgrade after the market closed yesterday. Origin blamed the cost on the government's renewable energy scheme, which it won't be able to pass onto customers, and regulatory uncertainty surrounding electricity pricing. The company had originally issued a forecast in August for 10% growth – it has now be revised to between 5% and 10%.

Iluka Resources Limited (ASX: ILU) lost 5.6% to close at $8.67. The company has seen its share fall from close to $11 in mid-October, as investors appear to be still concerned about the outlook for the mineral sands miner. Iluka cut its output due to weaker demand, and reported a 58% fall in production in October. Lower production and sales levels in 2012 were the reason for us suggesting in January that investors steer clear. Iluka has fallen around 49% since then.

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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