3 ASX stocks that were slammed yesterday

While the market enjoyed one of its best days of the year, these companies missed the party

Mike King

Mike King is a Fool.com.au Investment Analyst and Writer. He caught the investing bug more than a decade ago, at a time when the U.S. had invaded Iraq and fear reigned in the markets. His initial success as the markets took off encouraged his passion and thirst for knowledge. With 13 years behind him at one of Australia's largest domestic banks, Mike's passion for stocks led him to join a boutique funds management firm, where he stayed for four years. A seven-year stint in equity research at one of the largest investment banks in the world followed that, giving Mike a thirst to pursue his passion further. Mike holds a Diploma in Applied Finance and Investment and a Graduate Certificate in Financial Planning. His passion is to help retail investors invest better, and that passion was one of his primary reasons for joining The Motley Fool Australia in late 2011. Mike has written thousands of articles since joining, including for Fairfax Media, Yahoo!7, Ninemsn and has also appeared on ABC's The Business. You can see all of Mikes' holdings here

Published June 19, 2012 5:15 pm AEST

The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) rose 2% to close at 4,136.9 – the market's best day in five months, as Greece's pro-austerity parties claimed a victory in the weekend elections. These 3 stocks didn't fare as well, falling by 3.6% or more.

Gloucester Coal Limited (ASX: GCL) fell a huge 41.9% to close at $4.11, as the stock went ex-entitlement to a special dividend and capital return totalling $3.15. The company is paying shareholders a capital return of $2.68 and a special dividend of 47 cents per share, as part of the company's merger with Yancoal Australia.

SP AusNet (ASX: SPN) slumped by 8.8% to close at $1.035 after issuing 87m shares to retail investors at $1.00 per share as part of its $434m capital raising. According to the company, the proceeds will be used to expand its asset base and other growth opportunities (read: acquisitions). SP AusNet manages a $6.3 billion electricity and gas network that services more than 1 million customers throughout Victoria.

Echo Entertainment Group Limited (ASX: EGP) fell 3.6% to close at $4.33, as the company begins its 1 for 5 rights offer which is expected to raise $454m. Shareholders have been offered new shares at a price of $3.30. The proceeds will be used to pay down debt, as part of an agreement with Echo's bankers.

Other losers include OceanaGold Corporation (ASX: OGC) down 3.4% to $2.01 and Seven West Media Limited (ASX: SWM), down 3.2% to $2.13.

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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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