Each Monday, Stockhead recaps the stocks that are running hot with investors.
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
Here’s a summary of the stocks that were running hot for the two weeks ended Friday, October 30:
Scroll or swipe to reveal table. Click headings to sort.
Code Company Price RSI MktCap$ BIR BIR Financial Ltd 0.06 99 $ 4,875,022 XPL Xplorewlth Limited 0.19 92 $ 56,531,886 UUL Ultima Utd Ltd 0.57 92 $ 16,715,677 CSX Cleanspace Holdings 7.04 89 $ 539,136,661 EAS Easton Investments 1.15 89 $ 39,421,392 CXU Cauldron Energy Ltd 0.061 86 $ 22,024,231 SFM Santa Fe Minerals 0.11 86 $ 8,010,067 PNC Pioneer Credit Ltd 0.68 85 $ 42,861,745 KSS Kleos 0.735 84 $ 92,767,726 FFG Fatfish Group 0.039 83 $ 29,353,759 VRX VRX Silica Ltd 0.195 82 $ 84,569,233 ICQ Icar Asia Ltd 0.425 82 $ 142,364,655 E2M E2 Metals 0.725 80 $ 94,464,134 KIS King Island 0.098 76 $ 24,617,974 AHF Aust Dairy Group 0.086 76 $ 29,718,915 MSG Mcs Services Limited 0.03 75 $ 5,215,688 CNJ Conico Ltd 0.032 74 $ 17,642,871 SPQ Superior Resources 0.021 72 $ 22,002,568 CGS Cogstate Ltd 1.15 72 $ 190,536,264 4DS 4Ds Memory Limited 0.095 71 $ 137,517,816 FUN Funtastic Limited 0.12 70 $ 30,050,509 ICI Icandy Interactive 0.15 69 $ 78,663,326 AMO Ambertech Limited 0.18 63 $ 13,761,899
Among the stocks running hot with a two-week RSI above 70 was Kleos Space (ASX:KSS), which is preparing for the launch of four of its radio frequency scouting nanosatellites on November 7.
But topping this week’s list was financial services nanocap BIR Financial (ASX:BIR), which has a market cap of just 2.36m.
A 100 per cent gain on Monday October 26 was enough for a red-hot reading on the RSI gauge for BIR, which typically trades with daily volumes of less than 50,000.
Running Cold
Here’s a summary of the stocks that were running hot for the two weeks ended Friday, October 30:
Scroll or swipe to reveal table. Click headings to sort.
| Code | Company | Price | RSI | MktCap$ |
|---|---|---|---|---|
| ILU | Iluka Resources | 5.12 | 19 | $ 2,084,254,527 |
| KAI | Kairos Minerals Ltd | 0.045 | 28 | $ 70,365,732 |
| TGO | Trimantium Growthops | 0.038 | 23 | $ 5,773,902 |
| TCN | Techniche Limited | 0.038 | 30 | $ 8,007,335 |
| ATH | Alterity Therap Ltd | 0.028 | 21 | $ 40,687,651 |
| BUX | Buxton Resources Ltd | 0.067 | 29 | $ 8,979,659 |
| PCH | Property Connect | 0.0015 | 30 | $ 1,028,795 |
| TIE | Tietto Minerals | 0.435 | 29 | $ 196,320,048 |
| GMR | Golden Rim Resources | 0.0125 | 27 | $ 19,704,761 |
| ELT | Elementos Limited | 0.004 | 30 | $ 15,533,019 |
| PBX | Pacific Bauxite Ltd | 0.003 | 27 | $ 1,189,842 |
| SKN | Skin Elements Ltd | 0.023 | 16 | $ 8,469,958 |
| T3D | 333D Limited | 0.001 | 28 | $ 1,065,996 |
| ILU | Iluka Resources | 5.13 | 19 | $ 2,084,254,527 |
| LIO | Lion Energy Limited | 1.40 | 25 | $ 2,903,625 |
| ATH | Alterity Therap Ltd | 2.90 | 20 | $ 40,687,651 |
| NZS | New Zealand Coastal | 0.029 | 29 | $ 17,862,010 |
| BKY | Berkeley Energia Ltd | 0.375 | 29 | $ 103,442,168 |
| EOF | Ecofibre Limited | 1.62 | 20 | $ 237,414,008 |
| CPH | Creso Pharma Ltd | 0.025 | 25 | $ 17,210,460 |