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3 ASX stocks that got smashed on Wednesday

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.

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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.

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