Hot Money Monday: Investors piled into Neuren last week — are there more gains to come?

Picture: Getty Images
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, December 10:
Code | Company | Price | RSI | MktCap$ |
---|---|---|---|---|
NEU | Neuren Pharmaceut. | 3.85 | 86 | $ 491,266,136.40 |
SKT | Sky Network | 2.29 | 80 | $ 401,783,142.90 |
ASW | Advanced Share Ltd | 0.26 | 80 | $ 50,286,021.76 |
ERM | Emmerson Resources | 0.16 | 79 | $ 74,735,773.35 |
DVP | Develop Global Ltd | 4.11 | 79 | $ 572,264,761.68 |
OLH | Oldfields Holdings | 0.076 | 79 | $ 12,745,696.05 |
AGN | Argenica | 0.79 | 78 | $ 35,417,998.50 |
TGA | Thorn Group Limited | 0.27 | 78 | $ 91,770,923.70 |
MTR | Metal Tiger | 0.46 | 75 | $ 8,614,648.22 |
UCW | UCW Ltd | 0.15 | 75 | $ 17,627,167.20 |
EGL | Environmental Group | 0.225 | 73 | $ 64,740,629.77 |
CTE | Cryosite Limited | 0.4 | 73 | $ 17,083,347.05 |
NCR | Nucoal Resources Ltd | 0.011 | 72 | $ 8,454,735.89 |
ATR | Astron Corp Ltd | 0.4 | 71 | $ 44,091,748.08 |
IBG | Ironbark Zinc Ltd | 0.058 | 71 | $ 56,812,582.69 |
SNL | Supply Network | 11 | 71 | $ 449,170,667.00 |
BRU | Buru Energy | 0.2 | 71 | $ 107,688,598.20 |
RCL | Readcloud | 0.27 | 70 | $ 32,336,528.67 |
MTS | Metcash Limited | 4.44 | 70 | $ 4,277,349,296.86 |
SFM | Santa Fe Minerals | 0.13 | 70 | $ 8,738,254.68 |
GRR | Grange Resources. | 0.74 | 70 | $ 705,976,605.78 |
SSG | Shaver Shop Grp Ltd | 1.24 | 70 | $ 161,145,367.62 |
Biotech play Neuren Pharmaceuticals (ASX:NEU) comfortably led the Running Hot list, and with good reason.
Investors piled into the stock after its North American research partner, Acadia Pharma (Nasdaq: ACAD) reported positive top-line results from the Phase 3 ‘Lavender’ trial of trofinetide, Neuren’s lead drug candidate.
Strong results for Phase 3 trials — typically used to test efficacy after safety protocols have been cleared in earlier trials — are often enough to get the market talking.
Stockhead caught up with Nueren CEO Jon Pilcher to discuss the company’s outlook last week following its Phase 3 update.
And on Twitter, investors flagged the increased buying activity from large investment banks in the wake of the results.
$4 going to get another crack shortly
should break through this time
mega bullish price action again this morning
Mac Insto + UBS top 2 buyers on the Tuesday news
next leg up will be the biggest yet imo
— BOSS OF THE FROTH (@bossivic) December 9, 2021
New Zealand pay-TV and communications company Sky Networks (ASX:SKT) also ran hot after providing an investor update last week, where it flagged major cost savings that will flow through to its bottom line in FY22.
SKT said following a board review, it had identified ~$35m of cost savings, comprising $26m in annual costs and $9m in one-off costs.
“As a result, EBITDA guidance increases from $115m-$130m to $150m-$160m and NPAT guidance increases from $17.5m–$27.5m to $40m-$48m,” SKT said.
Another biotech, Argenica Therapeutics (ASX:AGN), also made an appearance on the Running Hot list after getting a US patent approval related to the use of its lead drug, ARG-007.
The company’s focus is on the development of new therapeutics aimed at reducing brain tissue death after strokes.
In that context, the patent covers the use of ARG-007 as a therapeutic compound to prevent brain cell death in patients with stroke, traumatic brain injury, and hypoxic ischaemic encephalopathy (HIE).
ARG-007 is a neuroprotective drug which has shown efficacy in animal models to reduce brain cell death.
Running Cold
Here’s a summary of the stocks that were running cold for the two weeks ended Friday, December 10:
Code | Company | Price | RSI | Market Cap |
---|---|---|---|---|
RIM | Rimfire Pacific | 0.007 | 30 | $ 12,643,713.15 |
AT1 | Atomo Diagnostics | 0.165 | 30 | $ 71,520,808.98 |
IPB | IPB Petroleum Ltd | 0.013 | 30 | $ 4,379,113.28 |
WRM | White Rock Min Ltd | 0.225 | 29 | $ 33,479,456.42 |
PAL | Palla Pharma Ltd | 0.29 | 29 | $ 47,764,383.09 |
PCH | Property Connect | 0.0015 | 29 | $ 1,028,795.21 |
NTL | New Talisman Gold | 0.0015 | 29 | $ 4,690,838.04 |
SBR | Sabre Resources | 0.004 | 29 | $ 6,757,254.60 |
KPO | Kalina Power Limited | 0.02 | 28 | $ 28,197,041.10 |
RIE | Riedel Resources Ltd | 0.013 | 27 | $ 12,567,191.81 |
SRI | Sipa Resources Ltd | 0.04 | 27 | $ 7,790,942.51 |
SIG | Sigma Health Ltd | 0.435 | 26 | $ 466,081,623.04 |
ADD | Adavale Resource Ltd | 0.035 | 25 | $ 12,285,670.57 |
LRS | Latin Resources Ltd | 0.032 | 24 | $ 45,506,888.42 |
NTO | Nitro Software Ltd | 2.645 | 23 | $ 667,655,008.16 |
CYM | Cyprium Metals Ltd | 0.1375 | 22 | $ 76,250,593.89 |
SWP | Swoop Holdings Ltd | 1.42 | 19 | $ 219,359,717.95 |
DOC | Doctor Care Anywhere | 0.415 | 19 | $ 82,739,800.10 |
OEQ | Orion Equities | 0.15 | 19 | $ 2,347,384.20 |
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