3 ASX stocks that beat the market on Tuesday


The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) rose 47.4 points, or 1.2% to 4,121 yesterday, boosted by optimism that China may bring forward spending on infrastructure and construction to bolster growth. Premier Wen Jiabao also hinted that other stimulatory measures could be in the wings.

Industrial stocks led the way with a 2.3% gain. These three stocks all managed to post gains of over 7%.

Graincorp Limited (ASX: GNC) jumped 8.6% to close at $9.65, after reporting a profit of $133.7m for the six months to March 2011. The company also raised its full year forecast, now expecting to report a profit of between $185m and $205m, before significant items. Graincorp’s grain storage and transport division increased its first half earnings to $73m, due to higher volumes and lower harvesting costs. Record grain exports helped the ports and shipping business increase its earnings by 33% to $74m. The company also announced a special dividend of 15 cents to go with the interim dividend of 15 cents, fully franked.

Monadelphous Group Limited (ASX: MND) was up 7.7% to close at $20.54, as the company’s shares recovered from a 19% fall over the last month. Shares in the engineering and construction services company have been buffeted by concerns of falling capital expenditure by the big miners, and the flow-on effects this would have on Monadelphous’s businesses. Analysts expect the company to report $1.33 in earnings per share for the full year to June 2012, and pay a dividend yield of over 5%, based on the current price.

Iluka Resources Limited (ASX: ILU) climbed 7.3%, closing at $13.71, having fallen from a high of $19.46 back in August 2011. The company announced on the 8th May 2012, that it was cutting zircon production because the global economic outlook remains unclear. Production costs were also expected to rise. Iluka continues to be a risky proposition for investors.

Other notable risers include James Hardie Industries SE (ASX: JHX), up 7.1% to $7.44 after reporting a US$140m profit. Campbell Brothers Limited (ASX: CPB) was up 5% to close at $59.56 after posting a 68% surge in full year net profit, and Mineral Deposits Limited (ASX: MDL) up 6.5% to close at $5.26.

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Motley Fool contributor 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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