Hot Money Monday: Mindax (obviously) and is that… the Brisbane Broncos?

This week’s Hot Money is more or less brought to you by the good folks at Mindax (ASX:MDX), with a nice cameo from Australia’s only listed football team.

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 14:

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

The numbers don’t lie — here’s what the playbook for a 14-day RSI of 99 looks like:

1. Remain in suspension for the best part of two years due to the ASX’s concerns about your capacity to operate as a listed company;
2. Pair up with a Chinese-owned JV partner who fronts the capital for a magnetite iron ore project in the Yilgarn province of WA;
3. Re-list after said Chinese-owned JV partner scores FIRB approval to participate.

And voila, shares in Mindax Ltd rose by up to 6,000 per cent in intra-day trade on Friday (that’s about as hot as it gets).

Another simple way to get on the Hot Money list is through a juicy takeover offer, and thus it was the case for APN Property Group (ASX:APD) which recommended that its shareholders accept a bid from real estate major Dexus at a 50 per cent premium.

And for investors looking to play the reopening trade, there’s one sector that may have snuck under the radar — listed sports teams.

In fact, there’s only one — the Brisbane Broncos (ASX:BBL) — and two weeks of steady gains saw the stock make an appearance on this week’s Hot Money list with an RSI of 75.

Throwing a few bob into BBL would so far have proven a nice hedge for Broncos fans, with the squad currently languishing in second-last place on the NRL ladder.
 

Running Cold

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, May 14:

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