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Hot Money Monday: A green hydrogen play runs hottest as 30 stocks post a +70 RSI
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After a few weeks when the Hot Money column briefly turned into a ‘bizarro Viagold update’, the ASX put an end to that when it put the obscure rare earths play into suspension on October 15, pending “further enquiries”.
This week a new leader topped the list, as Sparc Technologies (ASX:SPN) ran hot with a 14-day RSI of 85.
Each week, Stockhead recaps ASX stocks that are “running hot” as deduced by the Relative Strength Index (RSI).
The RSI is 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 a more detailed rundown of what the RSI does and how it’s used.
While there’s usually a pretty good reason if a given stock is running hot (or cold), investors are also on the lookout for opportunities where the price action has separated from fundamentals.
Running Hot
Here’s a summary of the stocks that were running hot for the two weeks ended Friday, October 29:
| Code | Company | Price | RSI | MktCap$ |
|---|---|---|---|---|
| SPN | Sparc Tech Ltd | 1.31 | 85 | $ 72,195,108.30 |
| CNR | Cannon Resources | 0.565 | 83 | $ 37,859,763.15 |
| PLY | Playside Studios | 0.745 | 82 | $ 71,618,728.12 |
| CRR | Critical Resources | 0.04 | 82 | $ 41,080,466.78 |
| MAD | Mader Group Limited | 1.89 | 82 | $ 378,000,000.00 |
| TNG | TNG Limited | 0.13 | 81 | $ 156,187,130.00 |
| LMG | Latrobe Magnesium | 0.056 | 80 | $ 77,489,598.13 |
| SHP | South Harz Potash | 0.19 | 80 | $ 72,096,700.97 |
| ITM | Itech Minerals Ltd | 0.28 | 79 | $ 23,894,999.19 |
| LIO | Lion Energy Limited | 0.082 | 78 | $ 22,842,982.58 |
| AND | Ansarada Group Ltd | 2.25 | 78 | $ 170,575,794.90 |
| AEV | Avenira Limited | 0.025 | 77 | $ 16,394,203.54 |
| EUR | European Lithium Ltd | 0.135 | 77 | $ 143,260,056.54 |
| AZL | Arizona Lithium Ltd | 0.089 | 77 | $ 155,032,990.01 |
| FDV | Frontier Digital Ltd | 1.77 | 76 | $ 569,384,935.18 |
| RAN | Range International | 0.015 | 75 | $ 10,381,543.21 |
| HNG | HGL Limited | 0.315 | 75 | $ 56,355,953.54 |
| XTC | Xantippe Res Ltd | 0.005 | 74 | $ 20,372,822.01 |
| HT1 | Ht&E Limited | 1.965 | 74 | $ 405,124,967.52 |
| IVX | Invion Ltd | 0.029 | 72 | $ 181,809,081.57 |
| AGR | Aguia Res Ltd | 0.069 | 72 | $ 22,708,085.92 |
| AUQ | Alara Resources Ltd | 0.022 | 72 | $ 15,519,443.26 |
| BCC | Beam Communications | 0.385 | 72 | $ 28,520,121.76 |
| LKE | Lake Resources | 0.935 | 72 | $ 1,065,207,347.32 |
| KOR | Korab Resources | 0.057 | 71 | $ 19,949,578.86 |
| PIL | Peppermint Inv Ltd | 0.021 | 71 | $ 37,283,675.22 |
| AMD | Arrow Minerals | 0.008 | 71 | $ 13,695,988.20 |
| EVO | Evolve Education Grp | 0.845 | 71 | $ 134,819,313.98 |
| TZL | TZ Limited | 0.145 | 70 | $ 28,976,342.10 |
| NVX | Novonix Limited | 7.30 | 70 | $ 3,291,086,220.84 |
Shares in SPN jumped sharply last week after it announced a research partnership with the University of Adelaide and Flinders University to progress an Australian made ‘ultra green hydrogen’ technology.
The process involves the use of photocatalysis — the acceleration of a photoreaction in the presence of a catalyst — in order to extract hydrogen from water without the use of electrolysis.
Nickel play Cannon Resources (ASX:CNR) has also been making a run of late, after hitting a number of thick sulphides at its ‘Musket’ project in WA.
A quick and simple way for a stock to run hot is to raise equity capital at a material premium to its previous trading price, which is what Cannon did last week with a $4m raise at 40c. Shares in CNR closed on Friday at 59c.
Rounding out the top 3 this week was Melbourne-based games developer Playside Studios (ASX:PLY), which is been marching steadily higher since early October.
PLY got a speeding ticket from the ASX on October 11, where it pointed to the Early Access release of its ‘Age of Darkness – Final Stand’ game on the Steam platform on October 8.
The stock continued to climb last week following the release of its quarterly trading update.
Running Cold
Here’s a summary of the stocks that were running hot for the two weeks ended Friday, October 29:
| Code | Company | Price | RSI | Market Cap |
|---|---|---|---|---|
| MRL | Mayur Resources Ltd | 0.185 | 30 | $ 41,084,292.36 |
| PRM | Prominence Energy | 0.008 | 29 | $ 7,953,482.09 |
| PBH | Pointsbet Holdings | 7.85 | 29 | $ 2,270,364,037.52 |
| PCH | Property Connect | 0.0015 | 29 | $ 1,028,795.21 |
| DTC | Damstra Holdings | 0.75 | 29 | $ 154,080,175.75 |
| BUY | Bounty Oil & Gas NL | 0.011 | 29 | $ 15,075,510.80 |
| PVE | Po Valley Energy Ltd | 0.026 | 29 | $ 26,172,729.41 |
| ECG | Ecargo Hldg | 0.024 | 29 | $ 14,766,000.00 |
| NUH | Nuheara Limited | 0.021 | 29 | $ 36,263,391.07 |
| BID | Bill Identity Ltd | 0.3 | 28 | $ 54,821,508.16 |
| CDA | Codan Limited | 10.17 | 28 | $ 1,864,913,369.85 |
| CBL | Control Bionics | 0.49 | 28 | $ 25,668,762.06 |
| MMM | Marley Spoon | 1.04 | 25 | $ 428,917,010.00 |
| OEQ | Orion Equities | 0.2 | 18 | $ 3,129,845.60 |
| MHI | Merchant House | 0.105 | 17 | $ 9,897,982.08 |
| SKN | Skin Elements Ltd | 0.053 | 10 | $ 23,394,272.36 |
