Hot Money Monday: These are the most in-demand stocks on the ASX right now

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 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.

Here’s this week’s list:

Running Hot

The pointy end of this week’s hot-money list was populated by a number of tech stocks, amid a mix of takeover offers and positive market updates.

Some recent selloffs among some marquee names in the sector — most notably Wisetech Global (ASX:WTC) — have created a discussion point among analysts and investors as to whether valuations in the space have run too far in advance of earnings fundamentals.

But this week’s RSI list indicates there’s still plenty of interest in the space. Among the leaders was IT services company CSG Limited (ASX:CSV), which surged on the back of a takeover offer from Fuji Xerox which valued the company at a 35 per cent premium to its previous closing share price.

Health-tech platform Konekt Ltd (ASX:KKT) also continued to run hot after entering into a scheme implementation deed to be acquired by Advanced Personnel Management earlier this month.

And RPM Global (ASX:RUL), which provides enterprise software product and advisory services to mining companies, also jumped towards the top of the hot-money tables after another strong week of gains. Shares in RUL are now up more than 20 per cent since the start of October.

Topping this week’s list was Novita Healthcare (ASX:NHL), which surged after getting a positive update from US regulators regarding its TALi Detect program — a treatment for attention-deficit disorder in children.

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, October 25:

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

Running cold

On the cooler side of the ledger, there were plenty of pot stocks in this week’s cold-money list, as investors continue to step back from the sector while companies try and validate their business models.

And 3D-printing company Titomic (ASX:TTT) continued to slump towards the bottom of the list, after a sharp selloff in October.

The stock started the month above $1.60 but it has now fallen below $1 on high trading volumes, prompting a price-query from the ASX last Thursday.

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, October 25:

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