The Motley Fool

ASX Hot stocks: Linc Energy, Perpetual and Perseus Mining

The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) has fallen 0.3% to close at 4,656, as the market continues to wipeout the gains made in 2013. Again it was China worries dragging on the market, this time it was concerns over stresses in the Chinese banking system, while weak offshore markets pointed to a weak start.

Here’s why these three stocks are hot right now.

Linc Energy Limited (ASX:LNC) lost 12.2% to end at 82.5 cents after media reports suggested Linc was in early stage talks to buy a coal mine jointly owned by BHP Billiton and Mitsubishi. BMA closed the Gregory mine last year as it was no longer profitable in the face of falling coal prices, high labour costs and a strong Australian dollar. Perhaps investors are a bit mystified why Linc would want to buy a high cost coal mine, with just a four year life span?

Fund manager Perpetual (ASX:PPT) fell 7.6% to $35.13, continuing its recent pullback from a year high of $45.99. That has coincided with recent market falls, which fund managers are sensitive to. As funds under management falls, either from falling markets or withdrawals, Perpetual see less revenue, with fees charged as a percentage of assets under management.

Not only suffering from lower gold prices, Perseus Mining (ASX:PRU) today announced a drop in forecast production, due to issues at its Edikan gold mine in Ghana. Not only is production expected to be lower, total cash costs are also expected to exceed the forecast of US$1,100 an ounce. The market punished the shares, which fell 24% to 50.7 cents. Perseus shares have now lost 75% of their value in the last six months.

In the market for high yielding ASX shares? Get “3 Stocks for the Great Dividend Boom” in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading


Motley Fool writer/analyst Mike King doesn’t own shares in any companies mentioned.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have 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 2.7% 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!