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.
| Code | Company | Price | RSI | MktCap$ |
|---|---|---|---|---|
| MDX | Mindax Limited | 0.16 | 99 | $ 2,961,836.33 |
| APD | APN Property Group | 0.9 | 91 | $ 296,593,238.70 |
| OEQ | Orion Equities | 0.25 | 87 | $ 4,453,597.25 |
| TLM | Talisman Mining | 0.24 | 86 | $ 43,857,670.48 |
| AGE | Alligator Energy | 0.033 | 83 | $ 77,952,216.80 |
| IMU | Imugene Limited | 0.3 | 83 | $ 1,483,156,266.74 |
| YRL | Yandal Resources | 0.67 | 77 | $ 64,489,539.42 |
| BCI | BCI Minerals Ltd | 0.395 | 77 | $ 239,683,933.20 |
| AIS | Aeris Resources Ltd | 0.16 | 76 | $ 278,318,391.39 |
| CAP | Carpentaria Resource | 0.1 | 75 | $ 30,410,310.96 |
| BLZ | Blaze International | 0.04 | 75 | $ 10,237,500.00 |
| BBL | Brisbane Broncos | 0.57 | 75 | $ 55,883,159.67 |
| NKL | NickelX Ltd | 0.15 | 75 | $ 8,292,500.00 |
| TER | Terracom Ltd | 0.14 | 74 | $ 113,041,144.50 |
| VPR | Volt Power Group | 0.004 | 73 | $ 27,508,600.67 |
| MSR | Manas Res Ltd | 0.008 | 73 | $ 19,321,915.19 |
| VRC | Volt Resources Ltd | 0.029 | 73 | $ 61,888,530.63 |
| POD | Podium Minerals | 0.525 | 73 | $ 138,780,022.59 |
| PVL | Powerhouse Ven Ltd | 0.19 | 72 | $ 14,691,482.72 |
| SVM | Sovereign Metals | 0.73 | 72 | $ 287,895,104.90 |
| BCA | Black Canyon Limited | 0.22 | 72 | $ 6,868,510.66 |
| CNB | Carnaby Resource Ltd | 0.42 | 71 | $ 49,484,667.54 |
| HLX | Helix Resources | 0.031 | 70 | $ 33,917,717.77 |
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.
| Code | Company | Price | RSI | MktCap$ |
|---|---|---|---|---|
| VAN | Vango Mining Ltd | 0.06 | 30 | $ 67,165,007.07 |
| BLY | Boart Longyear | 0.39 | 29 | $ 33,634,484.00 |
| PCH | Property Connect | 0.0015 | 29 | $ 1,028,795.21 |
| WKT | Walkabout Resources | 0.185 | 28 | $ 69,826,729.00 |
| CRW | Cashrewards | 0.95 | 28 | $ 74,876,423.60 |
| ASN | Anson Resources Ltd | 0.0535 | 27 | $ 43,803,924.46 |
| AHI | Adv Human Imag Ltd | 118 | 27 | $ 143,180,664.90 |
| CY5 | Cygnus Gold Limited | 0.12 | 27 | $ 15,720,914.21 |
| APT | Afterpay Limited | 86.05 | 26 | $ 24,458,674,987.50 |
| PTR | Petratherm Ltd | 0.06 | 25 | $ 11,935,068.36 |
| HWK | Hawkstone Mng Ltd | 0.03 | 25 | $ 49,076,799.21 |
| XRO | Xero Ltd | 111.8 | 25 | $ 17,363,055,001.11 |
| SPT | Splitit | 0.62 | 25 | $ 281,399,751.78 |
| OVN | Oventus Medical Ltd | 0.12 | 24 | $ 19,782,802.13 |
| PRN | Perenti Global Ltd | 0.73 | 23 | $ 485,963,702.49 |
| NGY | Nuenergy Gas Ltd | 0.028 | 22 | $ 44,428,664.91 |
| A2M | The A2 Milk Company | 5.55 | 20 | $ 4,059,022,913.40 |
| LBY | Laybuy Group Holding | 0.655 | 20 | $ 113,400,448.20 |
| LME | Limeade, Inc. | 0.655 | 20 | $ 170,368,561.87 |
| GTE | Great Western Exp. | 0.15 | 19 | $ 23,153,670.37 |
| MYD | Mydeal.Com.Au | 0.535 | 19 | $ 142,355,018.30 |
| YFZ | Youfoodz | 0.405 | 17 | $ 53,146,249.86 |
| MCX | Mariner Corp Ltd | 0.055 | 15 | $ 2,642,927.21 |
| TOM | Tomizone Limited | 0.002 | 12 | $ 850,401.35 |