Hot Money Monday: ASX large caps run hot in a bumper earnings season
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Hot Money Monday is typically the domain of ASX small caps, but this week saw plenty of larger companies near the top end of the list as investors responded to some reporting season surprises.
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.
Here’s a summary of the stocks that were running hot for the two weeks ended Friday, August 27:
Scroll or swipe to reveal table. Click headings to sort.
Code | Company | Price | RSI | MktCap$ |
---|---|---|---|---|
ORM | Orion Metals Ltd | 0.034 | 89 | $ 18,533,313.06 |
WTC | WiseTech Global Ltd | 45.97 | 86 | $ 15,167,948,435.04 |
BKL | Blackmores Limited | 95.45 | 86 | $ 1,783,388,418.08 |
ALG | Ardentl Leisure | 1.39 | 85 | $ 606,828,110.24 |
CNR | Cannon Resources | 0.325 | 83 | $ 21,595,233.08 |
ID8 | Identitii Limited | 0.145 | 81 | $ 16,728,446.35 |
KNM | Kneomedia Limited | 0.016 | 80 | $ 16,450,199.93 |
CNJ | Conico Ltd | 0.097 | 80 | $ 79,723,932.57 |
BTH | Bigtincan Hldgs Ltd | 1.455 | 80 | $ 642,305,427.83 |
MXC | MGC Pharmaceuticals | 0.055 | 79 | $ 91,055,290.91 |
EPM | Eclipse Metals | 0.037 | 78 | $ 68,902,447.14 |
GLA | Gladiator Resources | 0.028 | 77 | $ 11,941,962.41 |
CAG | Caperangeltd | 0.19 | 77 | $ 18,032,577.19 |
TIG | Tigers Realm Coal | 0.011 | 76 | $ 130,667,023.68 |
MRG | Murray River Grp | 0.23 | 75 | $ 9,925,907.18 |
EGL | Environmental Group | 0.11 | 75 | $ 27,420,537.77 |
LOV | Lovisa Holdings Ltd | 19.65 | 74 | $ 2,149,192,920.00 |
YOJ | Yojee Limited | 0.245 | 73 | $ 270,648,933.60 |
TKM | Trek Metals Ltd | 0.088 | 73 | $ 21,467,902.66 |
RNO | Rhinomed Ltd | 0.445 | 71 | $ 81,218,922.24 |
BMO | Bastion Minerals | 0.21 | 71 | $ 12,065,394.60 |
IDT | IDT Australia Ltd | 0.64 | 70 | $ 153,510,508.80 |
SPN | Sparc Tech Ltd | 0.575 | 70 | $ 31,647,026.16 |
ARR | American Rare Earths | 0.175 | 70 | $ 63,697,040.31 |
DDT | DataDot Technology | 0.009 | 70 | $ 11,176,825.19 |
Among the large caps running hot this week was Wisetech Global (ASX:WTC), the $15bn tech company which fended off a short-seller attack in 2019.
Investors responded well to the company’s full-year results, which showed strong momentum in its CargoWise logistics platform but even the ASX was surprised at Wednesday’s 28% surge, issuing a speeding ticket (price query) as WTC shares traded steadily at new all-time highs above $46 into the end of the week.
Equalling WTC’s 14-day RSI reading of 86 was large cap health company Blackmores (ASX:BKL), which rose for six straight days either side of its full-year results on Thursday.
While revenues fell in Australia, the results was highlighted by strong momentum in China where the group booked core earnings of $14.3m, up from 200,000 in FY20, while China revenues rose 27.8% to $131.6m.
Accompanying that growth, Blackmores said its “Global Innovation Centre was established in Shanghai in FY21, providing us with rich local insights and exciting new capabilities in Asia”.
At the smaller end of the market, is there something going on an rare earths and gold explorer Orion Metals (ASX:ORM)?
The stock hasn’t made any announcements since July, but it ripped higher last Wednesday with a gain of 70% on no news.
That followed up a 17% rally on Tuesday, which was enough to see ORM top this week’s Running Hot list with a 14-day RSI of 89.
Here’s a summary of the stocks that were running cold for the two weeks ended Friday, August 27:
Scroll or swipe to reveal table. Click headings to sort.
Code | Company | Price | RSI | MktCap$ |
---|---|---|---|---|
SZL | Sezzle Inc | 6.56 | 30 | $ 1,305,111,079.80 |
CVV | Caravel Minerals Ltd | 0.32 | 30 | $ 121,088,005.44 |
BAT | Battery Minerals Ltd | 0.012 | 30 | $ 25,233,930.40 |
PCH | Property Connect | 0.0015 | 29 | $ 1,028,795.21 |
LEX | Lefroy Exploration | 0.385 | 29 | $ 46,887,620.13 |
VXR | Venturex Resources | 0.625 | 28 | $ 449,496,516.07 |
MGU | Magnum Mining & Exploration | 0.1 | 27 | $ 49,614,491.40 |
MAN | Mandrake Res Ltd | 0.06 | 27 | $ 27,820,220.58 |
AX1 | Accent Group Ltd | 2.19 | 27 | $ 1,224,618,775.90 |
HHI | Health House Int Ltd | 0.1 | 27 | $ 5,915,867.40 |
CAP | Carpentaria Resource | 0.1025 | 26 | $ 71,305,295.00 |
GWR | GWR Group Ltd | 0.21 | 25 | $ 72,668,746.32 |
RVR | Red River Resources | 0.155 | 25 | $ 82,843,898.72 |
FEX | Fenix Resources Ltd | 0.26 | 21 | $ 134,580,967.20 |
TI1 | Tombador Iron | 0.05 | 20 | $ 54,346,413.51 |
MPH | Mediland Pharm | 0.056 | 18 | $ 17,514,762.16 |
AMD | Arrow Minerals | 0.005 | 18 | $ 9,161,908.80 |
Among the stocks running cold this week was online brokerage firm Selfwealth (ASX:SWF), which competes for market share with other low-cost trading platforms.
The company’s full-year results on August 20 showed annual revenues more than doubled to $18.4m, driven by a 105% lift in active traders.
However, the stock has dipped 16% in October to 31c, up slightly from its 2017 IPO price of 20c.