Whisky manufacturer Lark Distilling Co (ASX:LRK) kept things warm during winter, leading a group of 25 stocks that posted a 14-day RSI above 70 last 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 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, July 23:

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Tassie whiskey company Lark Distillery (ASX:LRK) topped this week’s list, after a solid run in July which has seen its shares climb from around $3.20 to Friday’s closing price of $4.80.

The stock posted some solid gains around the release of LRK’s 4C filing last Wednesday, where management flagged a push towards cash flow break-even over the next 12 months and said debt financing discussions with a number of the major banks are ongoing.

For the June quarter, Lark Distilling posted net cash outflows of $3.8m from customer receipts of $5.17m.

Metallurgical coal company Cokal Limited (ASX:CKA) also ran hot with a 14-day RSI of 88. Like Lark, CKA has put together a solid run to open FY22 with its shares climbing from around 6c to 10.5c.

CKA has multiple coal interests in Indonesia, Mozambique and Tanzania and its shares ripped higher by more than 20pc last Friday on no news.

Last Tuesday, CKA announced the first $2m drawdown of a $20m debt facility it’s using to fund the Bumi Barito mineral coking coal project in Indonesia, where production and sales are expected to commence in the December quarter.

Nanocap recruitment tech platform ApplyFlow (ASX:AFW) also popped up on this week’s list, with little news flow over the past two weeks.

Earlier this month, the company announced a fully underwritten pro-rata entitlement offer to raise $5.6m in order to fund “continued growth and product development”, AFW said.
 

Running Cold

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, July 23:

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Share-trading platform SelfWealth Ltd (ASX:SWF), which listed on the ASX in 2017, was among the stocks running cold after falling from around 48c to 38c so far in July.

Last wek, SFW announced firm commitments for a $10m share placement along with a $2m share purchase plan at 39c per share to invest in product development as it looks to diversify its revenue channels.

Earlier this month, the company said it’s on track to roll out a cryptocurrency investment option by year-end.

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