3 ASX stocks that got smashed on Wednesday

It wasn't a good day for shareholders of this sorry trio

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) fell 1.3% to close at 4,067.0 as global woes continue. Warnings from the World Bank and pessimistic comments from a former Greek prime minister triggered losses on markets across the globe.

These three stocks managed to fall by 7% or more:

Linc Energy Ltd (ASX: LNC) plummeted 13.1% to $0.595, continuing the stock's rollercoaster ride. Just one month ago, the shares rose 12% in a week to close at $1.215. The diversified energy company, with interests in coal, oil and gas had just announced that Golden Concord Holdings had invested $120m in Linc, in return for 5% of the company's issued share capital. This implied that Linc's shares were worth around $2.3 billion, a far cry from its current market cap of $303m. Consensus forecasts are for a maiden profit in 2013, when it ramps up production of oil.

OneSteel Limited (ASX: OST) saw its share price fall by 8% to close at 92c. The company's share price has yo-yoed between 63 cents and a high of $1.375 this year, as investors weigh up the value of a stock trading at less than half its book value against the uncertainty of OneSteel's future as it moves to become an iron ore miner. From the 1st July 2012, the company's name will change to Arrium Limited, and trade on the ASX under the ticker of ARI. Time will tell, but a name and ASX code change are unlikely to be enough to change this company's fortunes.

Myer Holdings Limited (ASX: MYR) was down 7.8% to close at $2 after posting a 21% drop in third quarter sales, and warning of a challenging and unpredictable retail environment. The company lowered its forecast for the 2012 financial year to no more than 15% lower that the $162.7m it made in 2011. Since floating in late 2009 at an issue price of $4.10, shares in Myer have sunk by more than 50% due to declining sales and profits, a weak retailing outlook and perhaps an overly optimistic float price.

Other notable fallers

Integra Mining Ltd (ASX: IGR) down 7.5% and Saracen Mineral Holdings Limited (ASX: SAR) down 7.2% to close at 45 cents.

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 owns shares in Saracen. 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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »