3 ASX stocks that were dumped yesterday


The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) fell 0.3% yesterday, ending at 4,123.3, as the ASX recovery loses steam. Investors are sitting on the sidelines, with so much uncertainty surrounding Europe. At the moment, Europe looks like a dam with several leaks in it, as soon as one is plugged temporarily (Greece), another leak springs open (Spain). Which country will be next is anyone’s guess.

These 3 stocks were all dumped by investors, falling by 5.5% or more.

Fairfax Media Limited (ASX: FXJ) slumped 8.5% to 59.5 cents, as the media company was all over the news (excuse the pun!). Deutsche Bank analysts assigned a value of zero to the company’s Metro Publishing unit – which produces The Age and The Sydney Morning Herald. Citi analysts added, “The structural decline of print revenues is set to continue.” Whether Fairfax can turn around its prospects remains to be seen, but it certainly has many obstacles to overcome.

Politicians were also in the news, citing fears that Gina Rinehart will breach editorial standards, if she gains control over Fairfax. Communications Minister Stephen Conroy even suggested that Ms Rinehart was going to turn the company into ‘the mining gazette’.

APN News & Media Limited (ASX: APN) saw its share price fall 7.2% to close at 70.5 cents, as investors showed concerns about the media & publishing company’s future. APN produces 20 daily and more than 100 non-daily newspapers across Australia and New Zealand, as well as owning radio stations and the largest outdoor advertising business in Australasia. Despite generating revenues of more than $1bn in 2011, the company still posted a loss of $45.1m, as it was forced to write down the value of its intangible assets.

Bathurst Resources Ltd (ASX: BTU) fell 5.5% to 43 cents, with investors concerned about the outcome of hearings set for October this year, sought by environmental groups opposed to coal mining on New Zealand’s Denniston Plateau. The company has acknowledged that parts of the plateau are environmentally significant, but have argued that much of the area has already been heavily modified thanks to mining on the plateau for more than a century. Fears over the outcome are likely to weigh on the company’s shares until October.

Other losers included Energy World Corporation (ASX: EWC) down 4.2% to 34 cents and Sundance Resources (ASX: SDL) down 4.1% to 35 cents.

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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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