3 ASX stocks that got thumped yesterday


The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) bounced back from Monday’s 1.9% fall to rise 58 points or 1.5% on Tuesday.

These three stocks went against the trend, sinking by more than 6%.

Qantas Limited (ASX: QAN) tumbled 18.7% to close at $1.16 after announcing a profit downgrade that surprised the market. The International division saw losses double to $450m, the fuel bill hits $4.4bn, and the company expects to report a loss for the first time since it floated 17 years ago. The company blamed Europe’s deteriorating debt crisis, the domestic turf war with Virgin Australia Holdings Limited (ASX: VAH) and the costs of industrial action for the downgrade.

Integra Mining Ltd (ASX: IGR) fell 9.2% to close at 44.5 cents, obliterating the 6% gain the shares made on Monday. The company says it’s on track to produce 100,000 ounces of gold in the 2013 financial year, up from 82,000 ounces this year. Integra is forecasting an operating cash profit in 2013 of $52m, based on a gold price of A$1,500 per ounce. Cash costs are expected to fall from $850 per ounce to $750 per ounce by the end of the 2013 financial year.

While that all sounds positive, the company also advised that it was experiencing problems with its crusher, resulting in numerous failures of crusher shafts, drive motors, belts and bushes. Perhaps investors didn’t like that, and decided to bail out of the stock?

Fairfax Media Limited (ASX: FXJ) closed at 58 cents after falling 6.5% with analysts speculating that an investor had sold out of the stock. The volume of shares traded significantly above the daily average, and many being traded at market close. Fears of a profit downgrade, following strikes by journalists over restructuring, could also be a likely culprit for the falling share price.

Media stocks have been hammered this year, with falling ad revenues impacting their profits. Ten Network Holdings Limited (ASX: TEN) was in a trading halt yesterday, following the announcement of a capital raising, with the company’s shares falling 24% this year.

If you’re in the market for some less risky, high yielding ASX shares, look no further than Secure Your Future with 3 Rock-Solid Dividend Stocks. In this free report, we’ve put together our best ideas for investors who are looking for solid companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry – the report is free for only a limited time.

More reading

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.

OUR #1 DIVIDEND PICK FOR 2016...

Forget BHP and Woolworths. This "dirt cheap" company is growing like gangbusters, and trading on a 5.6% dividend yield, FULLY FRANKED (8% gross). With interest rates set to stay at these low levels for years to come, for hungry investors, including SMSFs, this ASX company could be the "holy grail" of dividend plays for 2016.

Enter your email below to discover the name, code and a full investment analysis in our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2016.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.