Each Monday, Stockhead recaps which stocks are most heavily in demand by investors — running hot.

The analysis is based 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 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

In this week’s instalment of “HMM – Bear Market Edition”, we have maintained the RSI cutoff at 60 (instead of the standard 70) for the Running Hot section, to provide a broader snapshot of companies that may still have a hint of positive news flow amid the current malaise.

That brought the total number of companies on the list to 12, just up from last week’s total of 11. (For context, prior to the corona crisis there was an average of around 45 stocks with an RSI above 70).

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, March 20:

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

Code Name Price 2 Week RSI Market Cap ($)
TDL TBG DIAGNOSTICS LTD 0.25 91.45 54.40M
ZUSD ETFS ENHANCED USD CASH ETF 13.74 89.17 11.14M
CTE CRYOSITE LTD 0.07 74.8 3.37M
SKN SKIN ELEMENTS LTD 0.02 69.58 6.19M
CRM CARBON MINERALS LTD 0.25 67.82 4.79M
OLL OPENLEARNING LTD 0.25 67.48 34.22M
MCX MARINER CORP LTD 0.06 66.84 3.12M
MMM MARLEY SPOON AG-CDI 0.34 63.76 53.10M
ERG ENECO REFRESH LTD 0.07 62.24 17.98M
N1H N1 HOLDINGS LTD 0.08 61.57 6.77M
TGN TUNGSTEN MINING NL 0.19 61.48 146.38M
MHI MERCHANT HOUSE INTL LTD 0.12 61.21 11.31M
AUP AURORA PROPERTY BUY WRITE 3.00 60.52 6.08M

This week’s Hot Money list was populated by a number of companies who released statements to the market tying their business operations to treatments for COVID-19.

However, by the end of the week the ASX made it clear it was specifically targeting some of the more opportunistic entities.

TBG Diagnostics (ASX:TDL) led the pack, after announcing on Wednesday it had European regulatory approval for a COVID-19 testing kit.

But by Friday the ASX had put the stock in suspension, questioning why TBG waited until Wednesday to announce news that it had received the previous Saturday. (In the intervening period, the company’s stock price shot higher by almost 200 per cent).

And the performance of ed-tech platform OpenLearning (ASX:OLL) showed that even amid the market chaos, investors are still on the lookout for good news out of China.

The stock ripped higher to start the week after announcing a partnership with Chinese e-commerce giant Alibaba. The deal will connect OpenLearning to Alibaba’s cloud platform to offer students in mainland China “high-speed access to online courses through OpenLearning’s platform”.

 

Running Cold

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, March 20:

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

Code Name Price ($) 2 Week RSI Market Cap
ELO ELMO SOFTWARE LTD 4.23 14.99 318.22M
MVP MEDICAL DEVELOPMENTS INT'L 4.27 14.85 280.14M
MRZ MONT ROYAL RESOURCES LTD 0.12 14.8 4.52M
DGH DESANE GROUP HOLDINGS LTD 1.14 14.78 46.64M
MPW MSL SOLUTIONS LTD 0.04 14.7 12.89M
PBH POINTSBET HOLDINGS LTD 1.24 14.58 189.52M
AFG AUSTRALIAN FINANCE GROUP LTD 1.07 14.56 230.66M
AD8 AUDINATE GROUP LTD 3.13 14.49 212.21M
PTB PTB GROUP LTD 0.37 14.48 45.80M
PAR PARADIGM BIOPHARMACEUTICALS 1.16 14.44 230.45M
KAR KAROON ENERGY LTD 0.36 14.4 199.07M
PGL PROSPA GROUP LTD 0.62 14.38 100.04M
OIL OPTISCAN IMAGING LTD 0.01 14.3 7.17M
AMS ATOMOS LTD 0.29 14.25 55.08M
KAT KATANA CAPITAL LTD 0.65 14.25 27.74M
RVR RED RIVER RESOURCES LTD 0.05 14.11 24.78M
CGL CITADEL GROUP LTD/THE 1.3 14.05 73.71M
EOS ELECTRO OPTIC SYSTEMS 3.57 14.02 403.69M
EXP EXPERIENCE CO LTD 0.06 13.95 31.13M
KSL KINA SECURITIES LTD 0.75 13.69 131.06M
RFG RETAIL FOOD GROUP LTD 0.03 13.65 59.30M
BWR BLACKWALL PROPERTY TRUST 1.11 13.64 164.11M
WIC WESTOZ INVESTMENT CO LTD 0.7 13.63 93.94M
AMH AMCIL LIMITED 0.76 13.62 211.68M
MOZ MOSAIC BRANDS LTD 0.45 13.54 43.57M
OVH ONEVUE HOLDINGS LTD 0.14 13.46 37.51M
SIV SIV CAPITAL LTD 0.36 13.43 14.14M
EMD EMERALD CLINICS 0.05 13.43 8.28M
PCG PENGANA CAPITAL GROUP LTD 0.89 13.37 91.78M
DWS DWS LTD 0.63 13.3 83.05M
CAY CANYON RESOURCES LTD 0.06 13.18 27.95M
BTH BIGTINCAN HOLDINGS LTD 0.26 13.07 81.91M
EGI ELLERSTON GLOBAL INVESTMENTS 0.77 13.05 84.78M
BBN BABY BUNTING GROUP LTD 1.53 13.03 195.17M
SDG SUNLAND GROUP LTD 1.1 12.99 150.60M
CBR CARBON REVOLUTION LTD 1.31 12.83 166.89M
ECS ECS BOTANICS HOLDINGS LTD 0.02 12.81 8.12M
ALG ARDENT LEISURE GROUP LTD 0.18 12.77 86.35M
IFN INFIGEN ENERGY 0.4 12.75 384.86M
REG REGIS HEALTHCARE LTD 0.76 12.61 228.57M
CG1 CARBONXT GROUP LTD 0.17 12.6 18.72M
NUC NUCHEV LTD 1.45 12.57 65.25M
QVE QV EQUITIES LTD 0.7 12.56 189.21M
VVA VIVA LEISURE LTD 0.9 12.5 54.13M
ADH ADAIRS LTD 0.67 12.47 113.28M
GOW GOWING BROS LIMITED 1.5 12.41 80.70M
ECX ECLIPX GROUP LTD 0.44 12.38 140.64M
GDF GARDA PROPERTY GROUP 1.07 12.36 198.33M
CAM CLIME CAPITAL LTD 0.71 12.34 81.54M
LOV LOVISA HOLDINGS LTD 2.45 12.18 263.28M
MVF MONASH IVF GROUP LTD 0.61 12.13 142.65M
TYR TYRO PAYMENTS LTD 0.97 12.04 482.43M
LME LIMEADE INC-CDI 1.4 11.81 342.72M
AU8 AUMAKE INTERNATIONAL LTD 0.03 11.5 10.64M
360 LIFE360 INC-CDI 1.7 11.49 249.01M
GEM G8 EDUCATION LTD 0.67 11.48 306.02M
MMS MCMILLAN SHAKESPEARE LTD 5.26 11.45 407.02M
SO4 SALT LAKE POTASH LTD 0.3 11.43 87.09M
EUR EUROPEAN LITHIUM LTD 0.04 11.35 25.40M
SEC SPHERIA EMERGING CO LTD 1.09 11.28 72.31M
MYR MYER HOLDINGS LTD 0.09 11.15 78.02M
ALF AUSTRALIAN LEADERS FUND LTD 0.82 11.14 190.24M
IGL IVE GROUP LTD 0.57 10.94 84.48M
OPY OPENPAY GROUP LTD 0.35 10.87 33.30M
TOP THORNEY OPPORTUNITIES LTD 0.35 9.93 71.27M
AMA AMA GROUP LTD 0.19 9.76 135.33M
MNY MONEY3 CORP LTD 0.88 9.71 162.87M
RDH REDHILL EDUCATION LTD 0.78 9.61 24.04M
DXN DXN LTD 0.01 9.54 9.10M
CDP CARINDALE PROPERTY TRUST 3.3 9.47 231.00M
CDM CADENCE CAPITAL LTD 0.35 9.27 112.10M
HMC HOME CONSORTIUM 1.75 9.13 346.35M
WGN WAGNERS HOLDING CO LTD 0.64 9.06 119.81M
HPI HOTEL PROPERTY INVESTMENTS 1.6 8.95 250.49M
SPZ SMART PARKING LTD 0.09 8.93 34.13M
EHE ESTIA HEALTH LTD 0.99 8.81 258.48M
AQZ ALLIANCE AVIATION SERVICES 1.03 8.71 131.29M
ARF ARENA REIT 1.48 8.57 443.92M
EML EML PAYMENTS LTD 1.45 8.25 471.86M
TOT 360 CAPITAL REIT 0.75 8.19 104.10M
OML OOH!MEDIA LTD 0.84 8.15 203.60M
TGA THORN GROUP LTD 0.04 6.61 12.25M
VRL VILLAGE ROADSHOW LTD 0.86 6.05 166.90M
PNC PIONEER CREDIT LTD 0.73 5.58 46.28M
RDC REDCAPE HOTEL GROUP 0.45 5.38 248.49M
ENN ELANOR INVESTOR GROUP 1.09 4.36 128.06M
HLO HELLOWORLD TRAVEL LTD 0.94 3.32 117.86M

As the bear market becomes more entrenched, the Running Cold list has become a process of elmination.

Last week, we cut the total to only include stocks with an RSI below 20. There were still 99 stocks on the list, but this week that number has climbed to 260.

So we’ve cut back again, to stocks with an RSI below 15. With small-cap demand still in a broad state of decline, a total of 89 stocks ended up on this week’s list.

At Stockhead, we tell it like it is. While OpenLearning is a Stockhead advertiser, it did not sponsor this article.