3 ASX stocks slammed today


The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) has dropped 0.5%, to close at 4,462, following the lead of global markets overnight. The Dow Jones Industrial Average fell 0.9%, while the S&P 500 lost 1.2%. The UK’s FTSE 100 index was also down, losing 0.3%, as concerns of Greece re-emerge (again), and investors fret over the US fiscal cliff, looming early next year.

The Australian dollar is steady against the US dollar, currently buying 104.2 cents.

These three stocks were crunched, falling more than 5%.

Emeco Holdings Limited (ASX: EHL) saw its share price fall off a cliff, losing more than 16% to end at 51.5 cents. Emeco supplies mining equipment to contractors and miners, and today revealed that slowing activity in the Australian market would result in its net profit for the first half of financial year 2013 falling. The company now expects to report a profit of between $23m to $26m – compared to last year’s $29.2m. The company has also dropped its capex requirements from $120m down to around $80m.

Origin Energy Limited (ASX: ORG) fell 5.7% to close at $10.42, after the company announced a shock earnings forecast downgrade after the market closed yesterday. Origin blamed the cost on the government’s renewable energy scheme, which it won’t be able to pass onto customers, and regulatory uncertainty surrounding electricity pricing. The company had originally issued a forecast in August for 10% growth – it has now be revised to between 5% and 10%.

Iluka Resources Limited (ASX: ILU) lost 5.6% to close at $8.67. The company has seen its share fall from close to $11 in mid-October, as investors appear to be still concerned about the outlook for the mineral sands miner. Iluka cut its output due to weaker demand, and reported a 58% fall in production in October. Lower production and sales levels in 2012 were the reason for us suggesting in January that investors steer clear. Iluka has fallen around 49% since then.

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Motley Fool writer/analyst 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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