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 look out 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, June 4:
Scroll or swipe to reveal table. Click headings to sort.
| Code | Company | Price | RSI | MktCap$ |
|---|---|---|---|---|
| SGI | Stealth Global | 0.115 | 87 | $ 9,471,500.00 |
| ING | Inghams Group | 3.815 | 82 | $ 1,404,948,891.78 |
| NHC | New Hope Corporation | 1.665 | 82 | $ 1,390,036,326.94 |
| ACW | Actinogen Medical | 0.135 | 80 | $ 215,872,611.11 |
| CD1 | Cd Private Equity | 1.24 | 79 | $ 48,377,007.84 |
| MEY | Marenica Energy Ltd | 0.365 | 79 | $ 74,833,725.96 |
| IRD | Iron Road Ltd | 0.35 | 78 | $ 261,452,162.40 |
| 8VI | 8Vi Holdings Limited | 2.9 | 78 | $ 123,571,056.46 |
| PTX | Prescient Ltd | 0.15 | 77 | $ 83,271,891.30 |
| MTC | Metalstech Ltd | 0.235 | 77 | $ 36,916,233.12 |
| ASM | Ausstratmaterials | 5.55 | 76 | $ 746,357,132.10 |
| VAR | Variscan Mines Ltd | 0.082 | 75 | $ 15,334,705.73 |
| SYA | Sayona Mining Ltd | 0.055 | 75 | $ 256,394,924.26 |
| STA | Strandline Res Ltd | 0.245 | 75 | $ 262,302,899.02 |
| DM1 | Desert Metals | 0.855 | 74 | $ 29,750,000.00 |
| BFC | Beston Global Ltd | 0.1 | 74 | $ 84,267,440.80 |
| AGE | Alligator Energy | 0.042 | 73 | $ 101,665,475.68 |
| MZZ | Matador Mining Ltd | 0.54 | 73 | $ 99,145,244.59 |
| PGC | Paragon Care Limited | 0.305 | 73 | $ 101,365,587.60 |
| MSR | Manas Res Ltd | 0.012 | 72 | $ 36,471,859.58 |
| PDI | Predictive Disc Ltd | 0.105 | 72 | $ 139,534,093.05 |
| POS | Poseidon Nick Ltd | 0.08 | 71 | $ 216,324,943.60 |
| PO3 | Purifloh Ltd | 1.9 | 70 | $ 50,437,596.80 |
| FTZ | Fertoz Ltd | 0.059 | 70 | $ 10,494,423.27 |
Appearing at the top of this week’s Running Hot list was industrial distribution company Stealth Global (ASX:SGI).
The catalyst was some deal news late last week, when SGI announced it would purchase the business assets of WA-based Skipper Transport Parts for $4.2m.
Investors have rewarded SGI for its recent M&A activity, as the stock also rose last November following its acquisition of Brisbane-based tool supplier C&L for $3.8m.
Also making a rare appearance on the list was chicken company Inghams Group (ASX:ING), which has been climbing steadily since late May after the company upgraded its earnings guidance, citing an improvement in general trading conditions as COVID-19 restrictions are wound back.
Running Cold
Here’s a summary of the stocks that were running cold for the two weeks ended Friday, June 4:
Scroll or swipe to reveal table. Click headings to sort.
| Code | Company | Price | RSI | MktCap$ |
|---|---|---|---|---|
| GCY | Gascoyne Res Ltd | 0.45 | 30 | $ 135,463,389.12 |
| OIL | Optiscan Imaging | 0.29 | 30 | $ 187,928,983.61 |
| XAM | Xanadu Mines Ltd | 0.047 | 30 | $ 60,269,652.00 |
| OVT | Ovato Limited | 0.004 | 30 | $ 54,957,655.13 |
| VMG | VDM Group Limited | 0.002 | 30 | $ 17,319,152.38 |
| GTE | Great Western Exp. | 0.13 | 30 | $ 19,067,728.54 |
| BLY | Boart Longyear | 0.3225 | 30 | $ 30,536,571.00 |
| PEX | Peel Mining Limited | 0.29 | 29 | $ 125,429,327.10 |
| NXL | Nuix Limited | 2.62 | 28 | $ 853,576,795.86 |
| GML | Gateway Mining | 0.02 | 27 | $ 41,879,983.20 |
| AYM | Australia United Min | 0.007 | 25 | $ 12,898,042.40 |
| SIT | Site Group Int Ltd | 0.013 | 25 | $ 10,936,186.65 |
| NZK | NZK Salmon Ltd | 1.355 | 22 | $ 208,478,452.50 |
| ATU | Atrum Coal Ltd | 0.04 | 17 | $ 23,277,266.12 |
| OSL | Oncosil Medical | 0.063 | 16 | $ 51,827,314.11 |
| AFA | ASF Group Limited | 0.07 | 14 | $ 55,490,840.23 |