Singapore-based Asian American Medical Group (ASX:AAJ) was among the small cap names that ran red hot this week.

Stockhead’s Hot Money Monday analysis is based on 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 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 look-out 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, April 9:

Scroll or swipe to reveal table. Click headings to sort.

In terms of recent news flow, Asian American Medical Group announced on Wednesday that it will partner with London’s King’s College Hospital to set up in dedicated treatment centre for liver disease in China’s Hainan province.

Shares in the company rose by around 20 per cent on Thursday, and while trading volumes have been low AAJ shares popped up on this week’s Hot Money list with a 14-day RSI reading of 91.

Astivita (ASX:AIR), which manufactures a brand of zinc-based sunscreen and is chaired by colourful ASX investor Lev Mizikovsky, also ran hot with a 14-day RSI of 86.

The company has had no news since the release of its half-year accounts in late February.

Elsewhere, among the usual round of resources stocks, two childcare companies made an appearance on the Hot Money list.

Mayfield Childcare (ASX:MFD) with an RSI of 81, and Think Childcare (ASX:TNK) with an RSI of 85 on the back of some takeover activity after Busy Bees Early Learning Australia Pty Ltd lobbed an indicative, non-binding offer to buy the business.

TNK has been in the sights of a number of suitors, including private equity firm Alceon which made a $1.35 per share bid last November.

The company was right to bide its time, with the latest offer from Busy Bees coming in at $3.20 — a 137 per cent premium.
 

Running Cold

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, April 9:

Scroll or swipe to reveal table. Click headings to sort.