Hot Money Monday: Mainstream Group returns to top spot as bidding war continues

(Pic: Getty)

Funds management administration company Mainstream Group (ASX:MAI) topped the Running Hot list with a 14-day RSI of 92 this week.

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, April 30:

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

Code	Company	Price	RSI	MktCap$
5GG	Pentanet	1.09	77	$ 182,369,888.48
ADD	Adavale Resource Ltd	0.073	74	$ 18,642,909.68
ADO	Anteotech Ltd	0.415	71	$ 749,615,519.60
ARV	Artemis Resources	0.12	74	$ 119,360,253.29
ATL	Apollo Tourism	0.52	86	$ 93,075,454.00
C6C	Copper Mountain	4.58	74	$ 78,803,236.20
CST	Castile Resources	0.3	72	$ 57,915,935.09
CUL	Cullen Resources	0.036	71	$ 11,217,529.71
FAU	First Au Ltd	0.024	71	$ 13,521,832.59
FIN	FIN Resources Ltd	0.042	81	$ 13,126,114.71
GES	Genesis Resources	0.012	79	$ 9,394,095.53
HXG	Hexagon Energy	0.15	72	$ 58,447,528.65
JHC	Japara Healthcare Lt	0.975	75	$ 213,797,862.40
LCK	Leigh Crk Energy Ltd	0.26	80	$ 165,537,378.16
LRS	Latin Resources Ltd	0.074	76	$ 77,214,128.99
MAI	Mainstream Group	2.38	92	$ 310,701,240.00
POD	Podium Minerals	0.43	72	$ 126,163,656.90
PPK	PPK Group Limited	8.00	83	$ 652,749,642.69
RGL	Riversgold	0.068	74	$ 26,369,784.94
RHI	Red Hill Iron	0.68	87	$ 40,717,141.32
RXH	Rewardle Holding Ltd	0.027	71	$ 16,842,287.62
SRK	Strike Resources	0.305	78	$ 69,197,595.04
VMS	Venture Minerals	0.1	79	$ 132,068,196.96
VXR	Venturex Resources	0.685	72	$ 277,220,110.20
ZER	Zeta Resources Ltd	0.38	83	$ 109,362,589.82

Mainstream Group is in demand, and with good reason.

The stock appeared near the top of the Hot Money list two weeks ago, following a bid by investment management software company SS&C.

The funds services company — which provides administration services to more than 1,300 funds globally — confirmed that a $2.55 per share offer from Apex Group was superior to a previous offer it had provisionally accepted from SS&C Solutions Pty Ltd.

MAI is now in the enviable position of putting the ball back in SS&C’s court, having set out a deadline of May 6 for SS&C to match or exceed the offer.

Running Cold

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, April 30:

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

Code	Company	Price	RSI	MktCap$
AEI	Aeris Environmental	0.185	26	$ 54,861,263.33
AUL	Austar Gold Ltd	0.275	29	$ 15,231,260.24
BPT	Beach Energy Limited	1.33	23	$ 3,832,640,542.08
CBR	Carbon Revolution	1.7	25	$ 230,877,892.47
CLB	Candy Club	0.175	28	$ 63,326,453.68
CPT	Cipherpoint Limited	0.032	18	$ 7,095,614.00
CR9	Corellares	0.046	22	$ 15,167,994.38
EOF	Ecofibre Limited	0.92	25	$ 315,613,970.73
IBX	Imagion Biosystems	0.09	18	$ 114,427,118.96
KTE	K2 Energy Ltd	0.019	28	$ 6,614,457.32
MYD	Mydeal.Com.Au	0.72	19	$ 194,120,479.50
PCH	Property Connect	0.0015	30	$ 1,028,795.21
TPS	Threat Protect Ltd	0.03	23	$ 7,228,688.34
TYM	Tymlez Group	0.021	23	$ 6,716,848.03
WHK	Whitehawk Limited	0.2	27	$ 48,821,026.53
WRM	White Rock Min Ltd	0.465	25	$ 35,626,569.16
YFZ	Youfoodz	0.48	23	$ 67,946,471.34