Hot Money Monday: Two nanocap market minnows were in demand last week

(Pic: Getty)

Stockhead’s Hot Money Monday 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 look-out for opportunities where the price action has separated from fundamentals.

Volatility on the ASX saw the number of stocks with a 14-day RSI half to just 16, down from 32 in the week prior.

Running Hot

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, March 5:

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

Code	Company	Price	RSI	Market Cap
A4N	Alpha Hpa Ltd	0.52	74	$ 339,264,181
AQS	Aquis Ent Ltd	0.42	71	$ 16,966,609
AVR	Anteris Technologies	6.88	76	$ 47,426,758
BDM	Burgundy D Mines Ltd	0.29	76	$ 74,776,377
BEE	Broo Ltd	0.018	70	$ 17,969,306
C6C	Copper Mountain	3.3	75	$ 58,850,927
CCE	Carnegie Cln Energy	0.007	74	$ 63,740,433
CDD	Cardno Limited	0.445	81	$ 174,557,776
CGO	CPT Global Limited	0.43	74	$ 16,889,072
CWX	Carawine Resources	0.325	71	$ 34,844,769
DNK	Danakali Limited	0.56	76	$ 172,631,707
EGL	Environmental Group	0.064	70	$ 19,111,284
GLE	GLG Corp Ltd	0.3	99	$ 8,892,000
GRR	Grange Resources.	0.525	82	$ 509,229,027
IDA	Indiana Resources	0.09	71	$ 25,311,309
IGL	Ivegroup	1.54	73	$ 216,408,708
LAM	Laramide Res Ltd	0.59	92	$ 623,201
MLX	Metals X Limited	0.24	82	$ 217,743,856
OIL	Optiscan Imaging	0.24	74	$ 152,176,427
PIQ	Proteomics Int Lab	1.39	77	$ 138,475,755
PUR	Pursuit Minerals	0.064	70	$ 47,812,285
PVL	Powerhouse Ven Ltd	0.082	70	$ 5,299,124
QPM	Queensland Pacific	0.097	79	$ 93,294,758
RCP	Redbank Copper Ltd	0.105	73	$ 45,113,265
RNU	Renascor Res Ltd	0.06	75	$ 103,274,010
SLK	Sealink Travel Grp	8.53	84	$ 1,878,231,813
TNR	Torian Resources Ltd	0.058	78	$ 45,223,936
TPC	TPC Consolidated Ltd	2.1	93	$ 23,888,787
UUL	Ultima Utd Ltd	0.93	89	$ 34,824,327
VXR	Venturex Resources	0.345	86	$ 127,846,547
WWG	Wisewaygroup Ltd	0.32	88	$ 45,603,600
ZIM	Zimplats Holding Ltd	16.83	77	$ 1,638,245,018

Investment company Mariner Corp (ASX:MCX) chalked up a red-hot RSI rating, which appeared to be driven by a 150pc surge on Thursday on no news.

The sub-$5m nanocap released its interim financial report in the week prior, which showed a 94 per cent fall in revenues to $12,713.

MCX booked a loss for the period of $324,407, and finished the year with $200,976 cash in the bank — a possible case of the RSI price action diverging from fundaments.

Obscure resources play Viagold Rare Earth Corp (ASX:VIA) also recorded a somewhat bizarre RSI reading after climbing in Thursday trade.

Earlier last week, the infrequently traded company announced it had passed a resolution of shareholders to expand its capital base by another 100,000,000 ordinary shares at a par value 20c.

Digital wealth advisory platform InvestSMART Group (ASX:INV) also ran hot after announcing last Tuesday that it had raised $17.68m for its Ethical Share Fund, which will operate as an ASX-listed exchange traded managed fund (ETF) (ASX: INES).

Running Cold

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, March 5:

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

Code	Company	Price	RSI	Market Cap
BUD	Buddy Tech	0.039	30	$ 115,041,133.39
CFO	Cfoam Limited	0.022	30	$ 11,876,812.68
CSX	Cleanspace Holdings	4.75	23	$ 377,395,662.70
CTM	Centaurus Metals Ltd	0.68	28	$ 250,242,028.52
DTC	Damstra Holdings	0.91	16	$ 171,868,079.60
EVS	Envirosuite Ltd	0.125	30	$ 138,529,427.31
LCY	Legacy Iron Ore	0.014	24	$ 96,071,077.76
LME	Limeade, Inc.	0.965	14	$ 236,830,637.76
LNU	Linius Tech Limited	0.03	27	$ 46,627,970.11
NXL	Nuix Limited	5.04	22	$ 1,681,715,408.20
RCL	Readcloud	0.40	23	$ 49,693,371.42
SBR	Sabre Resources	0.0045	25	$ 7,573,786.42
SOV	Sovereign Cloud Hldg	0.82	27	$ 45,661,383.63
TER	Terracom Ltd	0.083	19	$ 61,795,825.66
TLG	Talga Group Ltd	1.17	30	$ 388,134,279.68
TNT	Tesserent Limited	0.235	24	$ 250,404,800.00
VR1	Vection Technologies	0.081	26	$ 79,199,621.85
ZLD	Zelira Therapeutics	0.059	26	$ 73,800,023.89