3 ASX stocks that beat the market last week


The S&P / ASX 300 Index (Index: ^AXKO) (ASX: XKO) fell 0.4% last week, as the issues in Europe continue to place a dampener on markets globally. However, these three stocks all managed to beat the index handsomely.

Maverick Drilling and Exploration Ltd (ASX: MAD) jumped 19.6% to close at $1.10, recovering some of the falls since the beginning of May 2012, when it was trading over $1.40. Maverick is one of the ASX’s hottest stocks of 2012, and clearly investors have been chasing the price, not the company, with the share price falling 16% on one day alone (7th May 2012). There has been no news about the company, so panic, fear, greed and stop-losses had contributed to the fall in the share price. The underlying story remains the same – long on potential, short on profits. Maybe some investors finally realised the stock had been oversold, and was being offered at a bargain price. The stock was up a further 4% in early morning trade today.

Kingrose Mining Limited (ASX: KRM) rose 16.2% to close at $1.22, after announcing that it would pay a maiden unfranked interim dividend of 4 cents a share in July 2012. The decision comes after Kingrose announced that it had $43m in cash and bullion at the end of March 2012 and no debt. The company also stated that it had enough cash to adequately fund its exploration program after paying the dividend.

Kingrose expects to produce 37,000 ounces of gold this financial year, rising to 40,000-50,000 ounces in the 2013 financial year, with a target of 55,000-65,000 ounces of gold per year in the medium term.

Anglogold Ashanti Limited (ASX: AGG) jumped 95 cents, or 14.6% to close at $7.44. The third largest gold miner in the world has mines in the United States, South America and Africa and produces over 4.3 million ounces of gold per year. Share market woes have seen the company’s shares fall to $6.13, its lowest price since 2008. With production expected to hit over 5.5 million ounces by 2015, it appears that the stock had been oversold (along with many others).

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Motley Fool contributor Mike King owns shares in Maverick. 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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