The S&P/ASX 300 (Index: ^AXKO) (ASX: XKO) has rebounded, closing up 0.5%, following a two-day selloff.
But that’s no consolation for shareholders in these four companies, who saw their stocks heavily sold off.
Buru Energy Limited (ASX: BRU) fell 10% to 36 cents and Senex Energy Limited (ASX: SXY) continues to fall, losing 9.1% to 30 cents. Both companies have been hit by falling oil prices, which have halved since June 2014. Oil stocks haven’t been helped by broker analysts cutting their forecasts (which were wrong in the first place), and all and sundry expecting oil prices to remain at these low levels of around US$50 per barrel, or continue falling.
I can’t say I know where oil prices are headed, but assuming the current state of affairs will continue for many years is dangerous.
APN News and Media Limited (ASX: APN) dropped 6.6% to 77.5 cents but has had a great 12 months rising 70% since January 2014. APN owns a number of media assets including newspapers, magazines and radio stations. Late last year, APN purchased Fairfax Media Limited’s (ASX: FXJ) Perth-based radio station 96FM for $78 million, to add to its stable. The media company announced late last year that it was looking to offload or demerge its New Zealand Media business, potentially as a separate listing. APN has been forced to take a NZ$54 million writedown on its New Zealand business in 2014 financial year.
And finally, gold miner, Silver Lake Resources Limited (ASX: SLR) lost 6.1% to close at 23 cents. Shares in the miner have jumped by 50% since Christmas Eve, partly on the back of securing a $10 million debt facility from the Commonwealth Bank of Australia (ASX: CBA), in return for delivering 7,056 ounces of gold to the bank over a period of 18 months. Given the proposed sale of the Lakewood processing Mill, it appears Silver Lake is struggling for cash, and investors may want to steer clear for now.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga
- Why PWR Holdings Ltd could see its share price rise from here – July 21, 2017 12:11pm
- Fortescue Metals Group Limited share price sinks on native title decision – July 20, 2017 4:23pm
- 5 overlooked finance shares to add to your watchlist – July 20, 2017 2:33pm