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.
Here’s this week’s list:
Energy supplier Pacific Energy (ASX: PEA) ran hot this week, but it wasn’t driven by technical momentum. PEA received a takeover off at a healthy premium, which was unanimously recommended by the board.
The company has entered into a Scheme Implementation Deed with a subsidiary of the Queensland Investment Corporation to acquire PEA for a total consideration of 97.5 cents per share, which was a premium of almost 40 per cent to its opening price on Wednesday.
Health and beauty products group McPherson’s Limited (ASX: MCP) also ran hot after beating on profit guidance last week and announcing a new joint venture.
And something is happening at gold explorer Spectrum Metals (ASX: SPX), which had to answer an ASX price query in mid-July and just strung together eight straight positive trading sessions. Investors that got in early have made a gain of more than 1,000 per cent this year.
Here’s a summary of the stocks that were running hot for the two weeks ended Friday, July 19:
Among the more notable names that have run cold in recent weeks, pot stock Elixinol Global (ASX: ESL) moved onto the list with an RSI of 28.39.
The company has been pretty active in July, restructuring its leadership team and obtaining another production licence to “manufacture medicinal cannabis for extracts and tinctures of cannabis and cannabis resin”.
The company’s stock price has cooled off from a May 2019 high above $5.30 to close at $3.29 on Friday.
Here’s a summary of the stocks that were running cold for the two weeks ended Friday, July 19: