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Hot Money Monday: M&A drives strong RSI prints while BNPL goes from cold to… colder
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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.
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 3:
| Code | Company | Price | RSI | MktCap$ |
|---|---|---|---|---|
| LVE | Love Group Global | 0.15 | 84 | $ 6,080,125.35 |
| IDZ | Indoor Skydive Aust | 0.047 | 83 | $ 15,151,504.46 |
| ICI | Icandy Interactive | 0.15 | 83 | $ 79,396,668.59 |
| LCY | Legacy Iron Ore | 0.025 | 79 | $ 179,332,678.48 |
| KWR | Kingwest Resources | 0.19 | 78 | $ 45,905,999.75 |
| PLY | Playside Studios | 0.97 | 78 | $ 102,162,009.23 |
| IXR | Ionic Rare Earths | 0.05 | 77 | $ 162,835,176.67 |
| MOZ | Mosaic Brands Ltd | 0.78 | 76 | $ 69,597,309.60 |
| HNG | HGL Limited | 0.42 | 76 | $ 73,352,193.49 |
| JGH | Jade Gas Holdings | 0.084 | 76 | $ 39,841,127.25 |
| MEM | Memphasys Ltd | 0.1 | 75 | $ 78,425,655.36 |
| ELE | Elmore Ltd | 0.025 | 75 | $ 15,366,613.77 |
| CWN | Crown Resorts Ltd | 11.525 | 75 | $ 6,703,866,882.90 |
| HMD | Heramed Limited | 0.305 | 74 | $ 55,814,433.57 |
| TLM | Talisman Mining | 0.185 | 74 | $ 35,670,504.43 |
| TRT | Todd River Res Ltd | 0.099 | 74 | $ 50,846,101.40 |
| HAW | Hawthorn Resources | 0.09 | 73 | $ 33,351,561.30 |
| STM | Sunstone Metals Ltd | 0.0995 | 73 | $ 234,876,702.80 |
| PNR | Pantoro Limited | 0.325 | 73 | $ 464,969,570.34 |
| CLT | Cellnet Group | 0.075 | 73 | $ 17,782,408.28 |
| JAN | Janison Edu Group | 1.4 | 73 | $ 325,649,298.80 |
| MI6 | Minerals260Limited | 0.685 | 72 | $ 149,600,000.00 |
| PGO | Pacgold | 0.57 | 72 | $ 20,530,080.00 |
| RAN | Range International | 0.023 | 71 | $ 18,957,600.65 |
| SMI | Santana Minerals Ltd | 0.3 | 71 | $ 38,464,813.52 |
| CXL | Calix Limited | 7.78 | 71 | $ 1,230,285,572.52 |
| AR3 | Austrare | 1.075 | 71 | $ 41,872,410.75 |
| ECT | Env Clean Tech Ltd. | 0.059 | 70 | $ 70,972,154.93 |
| ENX | Enegex Limited | 0.1 | 70 | $ 14,700,026.75 |
Thinly-traded CAQ Holdings (ASX:CAQ) registered a red-hot RSI print, after the stock ticked higher by more than 30% on Wednesday.
On the Commsec platform, that marked the first time CAQ shares traded hands since November 8.
Those low volumes may have contributed to a skewed RSI print for the company, which is developing a shopping centre project on Hainan Island — an area designated as one of four ‘free trade zones’ by the Chinese government.
In its latest 4C filing for the September quarter, the company booked net operating cash inflows of $124,000 and finished the quarter with $646 in the bank.
Another stock with a high RSI print was financial services company Thorn Group (ASX:TGA), which rose for five straight days before easing back on Friday.
Company news during the period was highlighted by the sale of its Radio Rentals retail division to Credit Corp (ASX:CCP) for a total sale price of around $45m.
Another M&A story — a possible bidding war for Australian Pharma Industries (ASX:API) between Woolworths and Wesfarmers — saw API register a 14-day RSI print of 84.
Running Cold
Here’s a summary of the stocks that were running cold for the two weeks ended Friday, December 3:
| Code | Company | Price | RSI | Market Cap |
|---|---|---|---|---|
| AYM | Australia United Min | 0.008 | 29 | $ 14,740,619.88 |
| 9SP | 9 Spokes Int Limited | 0.01 | 28 | $ 14,933,372.33 |
| TEG | Triangle Energy Ltd | 0.013 | 28 | $ 13,979,016.17 |
| BMM | Balkan Mining | 0.4 | 27 | $ 13,263,750.00 |
| TGH | Terragen | 0.2 | 26 | $ 36,623,809.20 |
| FIN | FIN Resources Ltd | 0.028 | 26 | $ 14,455,599.59 |
| PNM | Pacific Nickel Mines | 0.076 | 25 | $ 18,621,811.76 |
| SZL | Sezzle Inc | 3.77 | 25 | $ 760,934,592.00 |
| BBL | Brisbane Broncos | 0.51 | 23 | $ 44,118,283.95 |
| LAM | Laramide Res Ltd | 0.8 | 23 | $ 983,265.60 |
| FGL | Frugl Group Limited | 0.02 | 21 | $ 3,600,000.00 |
| HVM | Happy Valley | 0.06 | 21 | $ 10,291,385.22 |
| BKY | Berkeley Energia Ltd | 0.175 | 21 | $ 82,472,392.28 |
| NXL | Nuix Limited | 2.1 | 20 | $ 666,361,067.40 |
| EAX | Energy Action Ltd | 0.2 | 19 | $ 5,397,720.00 |
| DTC | Damstra Holdings | 0.4 | 18 | $ 79,525,252.00 |
| NSX | NSX Limited | 0.075 | 15 | $ 22,043,820.16 |
| LBY | Laybuy Group | 0.22 | 11 | $ 55,981,684.22 |
| MHI | Merchant House | 0.072 | 8 | $ 6,787,187.71 |
Among this week’s stocks that posted a 14-day RSI below 30, two BNPL stocks popped up on the list as the outlook for the sector becomes increasingly uncertain.
US-based BNPL player Sezzle (ASX:SZL) ran cold with an RSI of 25, after a trading update on Thursday failed to reverse what’s now a six-day losing streak.
From post-COVID highs in February of almost $12, Sezzle shares closed on Friday at $3.78.
Also running cold with an RSI of just 11 was fellow BNPL player Laybuy Holdings (ASX:LBY), which also made an appearance on last week’s Running Cold list.
Following nine straight losing sessions, including a 16% slump on Thursday, LBY shares closed the week at 21c. The company raised $40m from investors in its September 2020 IPO at $1.41 per share.
