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Hot Money Monday: BNPL gets the shivers, while Ikwezi Mining runs hot as coal makes a comeback
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Ikwezi Mining (ASX:IKW) topped the latest Running Hot list with a 14-day RSI of 82, after two straight weeks where lithium stocks dominated.
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, August 13:
Scroll or swipe to reveal table. Click headings to sort.
| Code | Company | Price | RSI | MktCap$ |
|---|---|---|---|---|
| IKW | Ikwezi Mining Ltd | 0.59 | 82 | $ 23,373,735.05 |
| ASM | Ausstratmaterials | 12.01 | 81 | $ 1,654,541,231.16 |
| DMP | Domino Pizza Enterprises | 144.15 | 81 | $ 12,200,659,698.65 |
| KNM | Kneomedia Limited | 0.014 | 79 | $ 12,063,479.95 |
| CCG | Comms Group Ltd | 0.085 | 78 | $ 27,907,036.63 |
| PFG | Prime Financial | 0.13 | 77 | $ 23,438,692.80 |
| WFL | Wellfully Limited | 0.095 | 76 | $ 18,883,841.94 |
| AMS | Atomos | 1.48 | 76 | $ 288,397,443.84 |
| RDC | Redcape Hotel Group | 1.1175 | 76 | $ 615,697,642.43 |
| ZEO | Zeotech Limited | 0.1025 | 76 | $ 152,306,335.68 |
| PGH | Pact Group Hldgs Ltd | 4.59 | 75 | $ 1,565,170,857.25 |
| MAF | MA Financial Group | 6.63 | 74 | $ 1,007,160,933.60 |
| BWF | Blackwall Limited | 0.63 | 73 | $ 39,779,110.35 |
| CG1 | Carbonxt Group | 0.225 | 73 | $ 35,571,977.07 |
| ANG | Austin Engineering | 0.22 | 73 | $ 124,715,978.16 |
| NXM | Nexus Minerals Ltd | 0.12 | 72 | $ 29,298,200.52 |
| TLX | Telix Pharmaceuticals | 6.94 | 72 | $ 1,943,201,515.20 |
| SMN | Structural Monitoring | 0.785 | 72 | $ 93,788,914.45 |
| BBL | Brisbane Broncos | 0.615 | 72 | $ 60,294,988.07 |
| DXB | Dimerix Ltd | 0.32 | 71 | $ 59,699,789.10 |
| IDT | IDT Australia Ltd | 0.515 | 71 | $ 110,335,678.20 |
| BBT | Bluebet Holdings Ltd | 2.5 | 71 | $ 486,266,447.07 |
| PME | Pro Medicus Limited | 64.87 | 71 | $ 6,761,246,921.12 |
| BLX | Beacon Lighting Grp | 2.04 | 71 | $ 441,059,776.85 |
| TOY | Toys R Us | 0.175 | 70 | $ 139,979,211.57 |
While coal is considered on the outs in many quarters, that hasn’t stopped investors buying up shares in coal player Ikwezi Mining (ASX:IKW).
The company produces and exports thermal coal from its Ikwezi mine in South Africa. Shares in IKW fell by 22% on July 30 to 21c, when its quarterly activities report advised of production delays.
Ikwezi Mining closed out Q2 with just $214,000 in the bank, but also flagged ongoing strength in the thermal coal market.
IKW shares then rose by 38% the next day, and the stock has been on a tear through the month of August on no news amid signs of a comeback in broader coal sentiment. IKW shares closed on Friday at 59c.
Another notable inclusion at the top-end of this week’s Running Hot list was Domino’s Pizza Enterprises (ASX:DMP).
It’s not often that a $12bn market cap company posts a 14-day RSI above 80, but investors cheered the company’s full-year results announcement which provided more ammunition for an extended post-COVID rally which has seen the stock climb to new all-time highs above $140.
Here’s a summary of the stocks that were running cold for the two weeks ended Friday, August 13:
Scroll or swipe to reveal table. Click headings to sort.
| Code | Company | Price | RSI | MktCap$ |
|---|---|---|---|---|
| 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 was BNPL player Sezzle (ASX:SZL), which declined on six straight sessions into last Friday’s close.
That included a 14.84% fall on Tuesday, after the company released its quarterly Form 10-Q trading update to the US Securities & Exchange Commission.
The form was lodged in connection with Sezzle’s plans to file for an IPO on a US exchange, which it first flagged back in April.
However, sentiment appeared to dim after investors scrutinised the numbers which showed a quarterly pre-tax loss of US$19m on revenues of US$27.845m, with expenses included a provision for uncollectible accounts of $13.847m.
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