Hot Money Monday: Prospa comes in from the cold with six-day rally

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, July 2:

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

Code	Company	Price	RSI	MktCap$
OLH	Oldfields Holdings	0.076	98	$ 12,745,696
RHP	Rhipe Ltd	2.5	89	$ 404,299,194
PGL	Prospa Group	1.11	81	$ 167,776,609
PSC	Prospect Res Ltd	0.235	79	$ 84,010,656
ITG	Intega Group Limited	0.64	79	$ 250,990,578
IOD	Iodm Limited	0.25	78	$ 154,213,620
BOT	Botanix Pharma Ltd	0.096	76	$ 89,529,071
POS	Poseidon Nick Ltd	0.105	76	$ 294,988,559
RKN	Reckon Limited	0.985	76	$ 113,861,306
88E	88 Energy Ltd	0.0365	75	$ 413,855,583
ATH	Alterity Therap Ltd	0.0375	75	$ 62,520,500
XF1	Xref Limited	0.36	75	$ 60,162,052
LSA	Lachlan Star Ltd	0.054	74	$ 69,933,199
BRL	Bathurst Res Ltd.	0.455	74	$ 76,928,230
MME	Moneyme Limited	2.3	74	$ 399,455,202
CPT	Cipherpoint Limited	0.037	73	$ 7,525,651
BCT	Bluechiip Limited	0.048	73	$ 28,698,264
LCT	Living Cell Tech.	0.016	73	$ 7,428,733
SUD	Suda Pharmaceuticals	0.068	72	$ 33,657,399
SYA	Sayona Mining Ltd	0.084	72	$ 422,603,021
TTA	TTA Holdings Ltd	0.044	72	$ 6,046,630
PGM	Platina Resources	0.098	72	$ 41,700,705
AXE	Archer Materials	1.01	71	$ 235,469,275
AQD	Ausquest Limited	0.025	70	$ 18,933,366
RAG	Ragnar Metals Ltd	0.076	70	$ 24,313,312

A notable name on this week’s Hot Money list was small business lending platform Prospa (ASX: PGL), which posted at 14-day RSI of 81 following a six-day winning streak.

The gains saw Prospa shares close at $1.12 on no recent news, after trading in a range below $1 since last November.

However the stock has plenty of work today to make up ground from its 2019 IPO, when it raised $110m from investors at $3.78 per share.

Running Cold

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, July 2:

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

Code	Company	Price	RSI	MktCap$
IPB	IPB Petroleum Ltd	0.022	30	$ 6,310,807.10
RF1	Regal Investment Fund	4.4	30	$ 491,602,952.55
ATR	Astron Corp Ltd	0.51	30	$ 67,362,392.90
HNG	HGL Limited	0.21	29	$ 37,570,635.69
AKN	Auking Mining Ltd	0.18	28	$ 9,071,294.35
MPH	Mediland Pharm	0.052	28	$ 16,263,707.72
SFG	Seafarms Group Ltd	0.061	26	$ 155,049,055.36
RNX	Renegade Exploration	0.005	26	$ 5,277,759.83
GMA	Genworth Mortgage Insurance	2.125	24	$ 878,655,211.92
CYC	Cyclopharm Limited	1.7375	23	$ 154,068,457.95
SMI	Santana Minerals Ltd	0.082	22	$ 9,350,676.15
ORM	Orion Metals Ltd	0.017	13	$ 9,266,656.53
AMT	Allegra Orthopaedics	0.195	10	$ 20,891,840.60