3 ASX stocks that thumped a falling market

ASX falls 0.9% as global fears weigh

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 15, 2012 4:01 pm AEDT

The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) dropped 0.9% to close at 4,349.2.

The index has now lost 4% since last Thursday, as concerns over Europe sovereign debt issues and the US fiscal cliff weighed on investors' minds. An Israeli air-strike in Gaza, which killed the leader of Hamas, hasn't helped, with fears the region could erupt into a full scale conflict.

The Australian dollar was down against the US dollar, currently buying 103.6 cents.

These three stocks rose more than 3%.

Myer Holdings Limited (ASX: MYR) climbed 6.5% to close at $2.13, after the company reported its first rise in quarterly sales since re-listing on the ASX in 2009. A rise in consumer sentiment and warmer weather contributed to first quarter sales rising by 1%. A report by the Australian Retailers Association suggests that spending between now and Christmas should reach $41.2 billion, a 3.9% rise over the same period last year.

Seven West Media (ASX: SWM) added 5.7%, to finish at $1.395 after broker Deutsche Bank upgraded the company to 'buy' this morning. Analysts suggested that Seven West's earnings and operating cash flow should ease its gearing. Management's focus on cost management, expanding its digital business and extracting greater synergies across the company should also bring further benefits. With close to $4 billion of intangibles, $1.9 billion of debt and concerns over the future of free-to-air TV and print newspapers, this is one stock Foolish investors would be better off avoiding.

Gindalbie Metals Group (ASX: GBG) rose 3.4% to end at 30.5 cents after the company announced that it had produced the first magnetite (iron ore) concentrate from its Karara project. The first stage of the project has an 8 million tonnes a year capacity and plans to be running at full steam within six months. With China's Anshan Steel as its partner, Gindalbie appears to have some of the downside risk of falling iron ore prices covered.

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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