Hot Money Monday: Global Health leads the pack as biotech heat up

Biotech Global Health (ASX:GLH) topped this week’s Running Hot list, in the wake of more steady gains in May which has seen its share price rise by almost 500 per cent over the past 12 months.

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 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, May 21:

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

Global Health has no recent news flow, but GLH shares have gained around 40pc since the release of the company’s 4C filing for the March quarter on April 26, which showed positive operating cash flows of $486,000 from customer receipts of $2.093m.

Also near the top of the list was immuno-oncology stock Imugene (ASX:IMU), which was one of a number of biotech companies in strong demand last week.

IMU shares have doubled so far in May, following positive developments in a Phase 2 trial for its HER-Vaxx cancer vaccine, and a research partnership with LA-based City of Hope, to develop a combined CAR-T therapy with Phase 1 trials scheduled to start next year.
 

Running Cold

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, May 21:

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