Hot Money Monday: Uranium runs hot; helium runs hotter

Just like when the recent lithium frenzy saw the Running Hot list populated by junior lithium plays, this week saw ASX uranium stocks make their move.

But it was the $6.5m oil & gas minnow Grand Gulf Energy (ASX:GGE) which ran hottest this week with an RSI of 92.

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 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, September 3:

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

Code	Company	Price	RSI	MktCap$
GGE	Grand Gulf Energy	0.0195	92	$ 6,523,741.13
PAM	Pan Asia Metals	0.505	91	$ 27,097,615.22
MHI	Merchant House	0.098	88	$ 9,238,116.61
ID8	Identitii Limited	0.185	86	$ 26,613,437.38
UUL	Ultima Utd Ltd	0.72	83	$ 45,450,664.88
SLX	Silex Systems	1.53	83	$ 240,677,497.81
92E	92Energy	0.455	82	$ 12,210,900.31
PDN	Paladin Energy Ltd	0.7775	82	$ 1,687,071,374.73
AFR	African Energy Res	0.041	82	$ 28,155,135.83
EL8	Elevate Uranium Ltd	0.445	80	$ 99,277,286.01
MGL	Magontec Limited	0.345	78	$ 25,320,639.30
LOT	Lotus Resources Ltd	0.2475	77	$ 215,805,766.95
DYL	Deep Yellow Limited	0.94	77	$ 280,995,174.30
GBR	Greatbould Resources	0.16	75	$ 62,172,432.00
BMN	Bannerman Energy Ltd	0.2125	75	$ 240,963,555.60
IKW	Ikwezi Mining Ltd	0.68	75	$ 27,641,982.32
GES	Genesis Resources	0.017	74	$ 8,611,254.23
AGE	Alligator Energy	0.045	74	$ 108,559,372.78
TOE	Toro Energy Limited	0.023	73	$ 77,946,843.60
TIG	Tigers Realm Coal	0.014	73	$ 156,800,428.42
VAL	Valor Resources Ltd	0.014	70	$ 32,437,145.60
TTA	TTA Holdings Ltd	0.054	70	$ 8,382,828.01
BCB	Bowen Coal Limited	0.1725	70	$ 218,192,393.16
LPD	Lepidico Ltd	0.0265	70	$ 147,650,355.86

The catalyst for last week’s uranium boom was the ongoing strength in spot uranium prices, which have pushed back past $35/lb for first time in six years.

However, shares in GGE outperformed as the stock jumped by more than 40% on both Thursday and Friday on a surge in volumes.

Those gains followed news it had acquired Kessel Resources Pty Ltd, an Australian company with an interest in Helium operations in Utah, USA.

If you want to know why helium is another resources buzzword for investors, here’s one reason.

The share-based deal will be subject to a $3.3m capital raise, with “firm commitments already received”, GGE said.

The transaction will add a “significant helium exploration opportunity to Grand Gulf’s existing cash-flow positive oil and gas portfolio”, the company said.

Merchant House (ASX:MHI), a Hong-Kong based footwear manufacturing company, also ran red-hot after its share price rose consistently over the last two weeks on no news and low volumes.

Another stock to run hot was Pan Asia Metals (ASX:PAM), which saw its share price rocket by more than 100% in a day last week after joining the geothermal lithium party.

Regulatory technology company Identitii (ASX:ID8), which makes compliance software for financial institutions, posted a red-hot RSI of 86.

Since closing at 7c on August 20, shares in ID8 have more than doubled to close on Friday at 20c. In that time, ID8 released its full-year results, advised that it’s pursuing additional patents in the US and flagged the release of an updated SaaS platform to help facilitate AUSTRAC compliance.

And nanocap electronics retailer TTA Holdings (ASX:TTA) also made an appearance on this week’s list, after its stock price surged during Thursday trade in price action that may have been influenced by ‘pump and dump’ traders.

Running Cold

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, September 3:

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

Code	Company	Price	RSI	MktCap$
KEY	KEY Petroleum	0.0025	30	$ 4,919,820.32
IDX	Integral Diagnostics	4.43	29	$ 878,606,527.05
ZNO	Zoono Group Ltd	0.485	29	$ 77,602,972.29
NGS	NGS Ltd	0.2	29	$ 9,601,798.50
APV	Appsvillage	0.036	29	$ 3,871,394.93
MRR	Minrex Resources Ltd	0.014	29	$ 8,372,055.83
NTL	New Talisman Gold	0.0025	28	$ 6,980,563.41
PG1	Pearl Global Ltd	0.029	27	$ 13,945,691.46
TGA	Thorn Group Limited	0.19	27	$ 66,279,000.45
MVP	Medical Developments	3.5	27	$ 252,989,585.60
PVL	Powerhouse Ven Ltd	0.075	26	$ 7,105,738.20
RNX	Renegade Exploration	0.005	22	$ 5,277,759.83
EDE	Eden Inv Ltd	0.017	21	$ 35,455,293.43
MGX	Mount Gibson Iron	0.5725	21	$ 671,208,857.07
CII	CI Resources Limited	1.01	21	$ 121,360,162.35
JAL	Jameson Resources	0.08	20	$ 24,266,551.20
SIT	Site Group Int Ltd	0.008	18	$ 7,571,206.14