Hot Money Monday: Global Lithium holds top spot, now up +200% since November capital raise

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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.
Here’s the original Hot Money article, which provides 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, January 14:
Code | Company | Price | RSI | MktCap$ |
---|---|---|---|---|
GL1 | Global Lithium | 1.545 | 93.69 | $204,180,861 |
QGL | Quantum Graphite | 0.195 | 91.09 | $55,670,000 |
AHK | Ark Mines Limited | 0.21 | 86.75 | $6,522,622 |
HIO | Hawsons Iron Ltd | 0.245 | 80.15 | $157,311,649 |
CRR | Critical Resources | 0.086 | 79.21 | $116,298,640 |
DM1 | Desert Metals | 0.5 | 79.21 | $16,720,200 |
ESS | Essential Metals Ltd | 0.46 | 78.22 | $88,164,237 |
GT1 | Greentechnology | 0.905 | 77.76 | $87,980,000 |
QXR | QX Resources | 0.049 | 77.76 | $28,491,217 |
Few (if any) companies on the ASX had a better Christmas/New Years run than Global Lithium (ASX:GL1), which was trading at 63c on Monday, December 22 and closed on Friday at $1.545.
Prior to that, the stock had already risen strongly from a 2021 trading range below 30c, after flagging a $13.6m cap raise backed by Chinese company Contemporary Amperex Technology Co — the world’s largest EV battery producer.
This week the company announced two board hires — experienced lithium executive Ron Mitchell as an executive director and Greg Lilleyman, former COO of Fortescue, as a non-executive director.
GL1 stayed on top of the Running Hot list for a second straight week, this time with a 14-day RSI of 93.69.
Lithium and other battery metals stocks continue to hold their place as the dominant investment theme to start 2021.
In line with that trend, SA-based graphite player Quantum Graphite (ASX:QGL) maintained second spot, following its return ‘back from the dead‘ last month after a long period of suspension from the ASX.
Running Cold
Here’s a summary of the stocks that were running cold for the two weeks ended Friday, January 14:
Code | Company | Price | RSI | Market Cap |
---|---|---|---|---|
CPO | Culpeominerals | 0.125 | 29.16 | $5,302,765 |
ALM | Alma Metals Ltd | 0.027 | 29.16 | $20,705,223 |
AL8 | Alderan Resource Ltd | 0.028 | 25.78 | $11,915,850 |
ZBT | Zebit Inc | 0.24 | 21.21 | $24,605,155 |
BNPL-adjacent play Zebit Inc (ASX:ZBT) has been on a steady decline since early 2021, in line with falls of ~80% for a number of ASX BNPL players since the sector reached its post-COVID zenith in February last year.
The US-based company listed on the ASX in October 2020, with a vertically integrated online marketplace that also provided BNPL payment options for target customers in lower income demographics that may otherwise struggle to access traditional credit services.
However, from after raising $35m at $1.58 per share the stock has struggled for traction, and closed at just 24c on Friday following another sharp fall to end the week.
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