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Hot Money Monday: Some unusual names post high RSIs while BNPL turns to ice
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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 17:
| Code | Company | Price | RSI | MktCap$ |
|---|---|---|---|---|
| SST | Steamships Trading | 10 | 96 | $ 310,082,370.00 |
| AIQ | Alternative Invest | 0.13 | 90 | $ 36,565,714.90 |
| ALO | Alloggio Group | 0.19 | 83 | $ 19,919,600.00 |
| SKT | Sky Network | 2.56 | 81 | $ 450,695,873.34 |
| CAA | Capral Limited | 9.15 | 80 | $ 153,879,668.05 |
| QGL | Quantum Graphite | 0.135 | 77 | $ 35,160,000.00 |
| CNB | Carnaby Resource Ltd | 0.41 | 76 | $ 34,240,484.73 |
| NWF | Newfield Resources | 0.455 | 75 | $ 287,168,793.56 |
| BBC | Bnk Bank Corp Ltd | 1.19 | 75 | $ 137,168,069.15 |
| HIO | Hawsons Iron Ltd | 0.14 | 74 | $ 92,956,883.50 |
| KCN | Kingsgate Consolid. | 1.905 | 73 | $ 406,123,031.26 |
| HFR | Highfield Res Ltd | 0.715 | 72 | $ 262,389,518.64 |
| CTE | Cryosite Limited | 0.405 | 72 | $ 19,767,873.02 |
| ILU | Iluka Resources | 10.15 | 72 | $ 4,202,399,256.06 |
| 3PL | 3P Learning Ltd | 1.6075 | 72 | $ 443,757,092.85 |
| TMS | Tennant Minerals Ltd | 0.034 | 71 | $ 12,422,793.01 |
| GRR | Grange Resources. | 0.665 | 71 | $ 758,056,847.19 |
| GEN | Genmin | 0.205 | 71 | $ 53,634,691.50 |
| AXI | Axiom Properties | 0.075 | 70 | $ 32,453,524.35 |
| RRR | Revolverresources | 0.48 | 70 | $ 38,480,052.44 |
| VRT | Virtus Health Ltd | 6.69 | 70 | $ 573,097,873.20 |
| ATR | Astron Corp Ltd | 0.45 | 70 | $ 55,114,685.10 |
| STX | Strike Energy Ltd | 0.2125 | 70 | $ 405,021,009.00 |
| MCR | Mincor Resources NL | 1.405 | 70 | $ 653,868,936.00 |
| A1M | Aic Mines Ltd | 0.54 | 70 | $ 165,162,534.63 |
Papua New Guinea-based Steamships Trading Company (ASX:SST) popped up on this week’s list, after posting a couple of solid daily gains last week.
Founded over 100 years ago and headquartered in Port Moresby, the diversified company runs three operational divisions — logistics, property & hotels, and commercial.
Data from Commsec showed SST doesn’t trade every day, which may have upwardly impacted its 14-day RSI print over the past fortnight. The company last made an ASX announcement on October 11.
Another thinly traded stock — the Alternative Investment Trust (ASX:AIQ) — also ran hot after jumping by ~18% last Monday.
The platform — operated by Warana Capital — maintains exposure to various investment funds and debt/equity co-investment structures.
Recently-listed holiday accommodation manager Alloggio Group (ASX:ALO) rounded out the top 3 on this week’s list, posting four straight winning sessions last week to climb back to 19.5c — just shy of its 20c November listing price after the stock fell on debut.
Running Cold
Here’s a summary of the stocks that were running cold for the two weeks ended Friday, December 17:
| Code | Company | Price | RSI | Market Cap |
|---|---|---|---|---|
| PCH | Property Connect | 0.0015 | 30 | $ 1,028,795.21 |
| IVT | Inventis Limited | 0.096 | 30 | $ 5,928,305.62 |
| Z1P | Zip Co Ltd | 4.19 | 30 | $ 2,620,315,233.80 |
| IDT | IDT Australia Ltd | 0.29 | 28 | $ 69,559,449.30 |
| GTE | Great Western Exploration | 0.13 | 28 | $ 19,067,736.38 |
| OXX | Octanex Ltd | 0.02 | 27 | $ 5,179,553.72 |
| AGS | Alliance Resources | 0.145 | 27 | $ 30,162,484.43 |
| ZBT | Zebit Inc | 0.295 | 27 | $ 27,436,524.16 |
| RAD | Radiopharm | 0.375 | 26 | $ 42,000,114.24 |
| APT | Afterpay Limited | 83.15 | 25 | $ 25,978,999,693.50 |
| RAG | Ragnar Metals Ltd | 0.03 | 22 | $ 11,180,546.67 |
| M8S | M8 Sustainable | 0.014 | 19 | $ 6,292,199.40 |
| CDD | Cardno Limited | 0.215 | 14 | $ 85,931,229.34 |
| JAL | Jameson Resources | 0.067 | 10 | $ 22,955,379.54 |
After a brutal week for the sector, it perhaps wasn’t surprising to see a number of ASX BNPL stocks post an RSI of 30 or below over the past fortnight.
Zip Co (ASX:Z1P), the second largest competitor, has fallen by ~35% since the start of November and registered a 14-day RSI of 30.
Industry leader Afterpay (ASX:APT) has also fallen by more than 30% in that time and registered an RSI of 25, while sector-adjacent stock Zebit (ASX:ZBT), which provides BNPL services to users of its US-based online shopping marketplace, fell to new all-time lows beneath 30c with a 14-day RSI of 27.
