The Motley Fool

3 ASX stocks that beat the market last week

The S&P / ASX 300 Index (Index: ^AXKO) (ASX: XKO) fell 0.4% last week, as the issues in Europe continue to place a dampener on markets globally. However, these three stocks all managed to beat the index handsomely.

Maverick Drilling and Exploration Ltd (ASX: MAD) jumped 19.6% to close at $1.10, recovering some of the falls since the beginning of May 2012, when it was trading over $1.40. Maverick is one of the ASX’s hottest stocks of 2012, and clearly investors have been chasing the price, not the company, with the share price falling 16% on one day alone (7th May 2012). There has been no news about the company, so panic, fear, greed and stop-losses had contributed to the fall in the share price. The underlying story remains the same – long on potential, short on profits. Maybe some investors finally realised the stock had been oversold, and was being offered at a bargain price. The stock was up a further 4% in early morning trade today.

Kingrose Mining Limited (ASX: KRM) rose 16.2% to close at $1.22, after announcing that it would pay a maiden unfranked interim dividend of 4 cents a share in July 2012. The decision comes after Kingrose announced that it had $43m in cash and bullion at the end of March 2012 and no debt. The company also stated that it had enough cash to adequately fund its exploration program after paying the dividend.

Kingrose expects to produce 37,000 ounces of gold this financial year, rising to 40,000-50,000 ounces in the 2013 financial year, with a target of 55,000-65,000 ounces of gold per year in the medium term.

Anglogold Ashanti Limited (ASX: AGG) jumped 95 cents, or 14.6% to close at $7.44. The third largest gold miner in the world has mines in the United States, South America and Africa and produces over 4.3 million ounces of gold per year. Share market woes have seen the company’s shares fall to $6.13, its lowest price since 2008. With production expected to hit over 5.5 million ounces by 2015, it appears that the stock had been oversold (along with many others).

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 Maverick. 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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!