3 ASX stocks that crashed by more than 9% today

ASX rises for 0.6% for the second day in a row, but these three were crunched

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 20, 2012 5:11 pm AEDT

The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) has climbed 0.6% for the second day in a row to close at 4,385.7, following large gains on Wall Street overnight. The Dow Jones Industrial Average rose 1.7%, while the S&P 500 added 2%, on further hopes that US politicians will be able to navigate away from the looming fiscal cliff.

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

These three stocks fell more than 9% today.

Cardno Limited (ASX: CDD) fell 19.2% and closed at $6.30 after the professional services company issued a profit warning. Profit for the first half of 2013 is expected to be flat compared to last year, as a result of increased competition, constrained rates and greater costs. Investors may also be worried that the company may now need to write down the value of its $500 million of intangibles, and possibly conduct a capital raising to shore up its balance sheet.

Energy World Corporation Ltd (ASX: EWC) lost 11.7% to end at 26.5 cents. The perennial yo-yo stock saw its shares fall after Indonesia disbanded the nation's upstream oil and gas regulator, BPMigas. That could affect the validity of existing oil and gas contracts, which could be negative for the company's gas and power operations in Indonesia.

Boart Longyear Limited (ASX: BLY) saw its shares fall 9.6%, following the company's second earnings downgrade for the 2012 financial year, due to lower demand. The drilling services and equipment provider announced that it was cutting annual costs by US$70 million, and relocating its manufacturing operations from Perth to an existing facility in Poland.

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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