Hot Money Monday: The most in-demand stocks on the ASX right now
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Each Monday, Stockhead recaps which stocks are heavily demanded by investors – or running hot.
Stockhead uses the Relative Strength Index (RSI), a technical gauge which measures how trading momentum is affecting the price action.
A reading of 70 is seen as the level at which a company may have been overbought. If a stock has a reading of 30 or below, it could be undervalued.
Click here for the first edition of Hot Money, which includes a more detailed description of what the RSI does and how it’s used.
Here is this week’s list:
The ‘hottest’ stock was gold explorer Spectrum Metals (ASX: SPX) which continues to find gold at Penny North. A $7 million capital raise on Thursday halted its growth.
One notable buyer in the last fortnight was prominent mining investor Anthony Barton.
The next two show what a takeover bid or long overdue clean-out of the board can do for a share price. Second is Pacific Energy (ASX: PEA) which has announced that QIC Capital wanted to acquire it.
Also, lower on the list are fellow takeover targets GBST Holdings (ASX: GBT) and Cynata Therapeutics (ASX: CYP).
Third on the ‘running hot’ list is toy retailer Funtastic (ASX: FUN). Chairman Shane Tanner quit after serving on the board for 10 years. He will be replaced by World Retail Congress advisory board member Bernie Brookes AM.
While it has been a few weeks since Toy Story 4 was released, perhaps it’s also having the knock-on effect it hoped for.
PointsBet (ASX: PBH) ran hot as it announced a plan to build its own casino in Colorado and a roll out in five other US states.
YPB Group (ASX: YPB) announced it had dished out 100 million Protect Codes and reduced its cash burn. But a $1.6 million capital raise announced on Friday sent it down 25 per cent.
Strong results at a gas well belonging to Strike Energy (ASX: STX) and Warrego Energy (ASX: WGO) put both stocks on our ‘hot money’ list.
Embattled investment company Lionhub (ASX: LHB) had the lowest RSI. Last week, its quarterly revealed its only revenue was from the issue of convertible notes and has only $25,000 left in the bank.
A curious spotting was scaffold lessor Oldfields Holdings (ASX: OLH) which is present despite surging 60 per cent on Friday for no apparent reason.