Hot Money Monday: The most in-demand stocks on the ASX right now
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Each week, Stockhead provides a summary of outliers on the Relative Strength Index (RSI) — 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 the first edition of Hot Money, which includes a more detailed description of what the RSI does and how it’s used.
Running hot with an RSI reading above 90 this week was power generation developer Pacific Energy (ASX:PEA).
Its move to the top of the Hot Money table was with good reason, after the company became the subject of a bidding war between the Queensland Investment Corporation (QIC) and a consortium led by Canadian pension fund OPTrust.
To start the week, Pacific Energy announced it had entered into a scheme of arrangement with the consortium for an offer priced at $1.085 per share.
The deal trumped QIC’s initial bid of 97.5c, but on Friday the war turned nasty.
QIC ended the week by lodging a complaint with the Takeovers Panel — arguing the deal was in breach of the original scheme of implementation deed because it was denied an opportunity to match the bid.
Carbon fibre component manufacturer Quickstep (ASX:QHL) has also been running hot over the past two weeks after the company released its annual results on August 26.
The stock is up more than 30 per cent since announcing a maiden full-year profit of $2.7m with annual sales growth of 24 per cent.
And after as steep fall from grace, SaaS logistics platform Getswift (ASX:GSW) has made an interesting appearance near the top of the hot money list.
The company — which provides a route-optimisation service to delivery drivers — slumped sharply last year after disclosure problems with respect to revenue-generating clients.
Along with a loss of face, the announcement resulted in class-action lawsuits.
But that hasn’t phased a number of US investors taking a recent interest in the business model, which has helped drive the price from a June low of 15c to Friday’s close at 58c.
Here’s a summary of the stocks that were running hot for the two weeks ended Friday, September 13:
Here’s a summary of the stocks that were running cold for the two weeks ended Friday, September 13: