ASX Hot stocks: Drillsearch, Boart Longyear & Dexus

ASX recovers from early falls, ending down just 0.2%

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 June 18, 2013 4:45 pm AEST

The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) has closed down 0.2% at 4814.4, after reversing early heavy losses. The gold sector was heavily punished down over 2%, while the Industrials lost more than 1%. The A-REIT (property trusts) sector was the standout performer, rising 1.7%.

Here's why these three stocks are hot right now.

Drillsearch Energy Limited (ASX: DLS) rose 4% to close at $1.02. Drillsearch is drilling for oil and gas in the Cooper Basin in conjunction with Beach Energy, which has reported several successes, including new oil finds and record oil production. Drillsearch also has a joint venture with QGC, owned by gas giant British Gas, which gives the company exposure to BG's LNG facility under construction in Gladstone.

Boart Longyear Limited (ASX:BLY) jumped 7.2%, ending at 67 cents. Shares in the provider of drilling services, including products and equipment for mining and mineral exploration have slumped from over $3, dropping by 78% in the past year. The main reasons for the fall have been several profit downgrades and the company's announcement that earnings in future years were uncertain, as the resources boom slowly tapers off and miners cut costs to combat falling commodity prices.

Dexus Property Group (ASX:DXS) added 3.3% to finish at $1.085 after investment bank UBS upgraded the property company to a 'Buy'. The broker noted that Dexus has strong earnings per share growth potential and a strong balance sheet compared to other office real estate investment trusts (REIT). Still, the company's shares are only offering a dividend yield of 3.6%, fairly low compared to other alternatives.

In the market for high yielding ASX shares? Get "3 Stocks for the Great Dividend Boom" in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading

Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned.

Automatic Renewal

By taking up this offer, you will also be enrolled in our auto-renewal program, which is our way of making your ongoing subscription easier by ensuring uninterrupted service. Don't worry, though – you're not locked in, and can cancel your auto-renewal at any time before each 'anniversary' date without question or penalty.