Hot Money Monday: Viagold is still mooning - up 1,000pc since August 27

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, October 1:

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

Code	Company	Price	RSI	MktCap$
VIA	Viagold Rare Earth	0.48	98	$ 39,989,953.92
TUA	Tuas Limited	1.56	90	$ 672,668,080.45
ALT	Analytica Limited	0.0025	83	$ 9,227,602.26
PDI	Predictive Disc Ltd	0.245	82	$ 324,362,484.72
CAE	Cannindah Resources	0.145	80	$ 70,049,067.44
RDT	Red Dirt Metals Ltd	0.63	79	$ 78,853,920.00
WC8	Wildcat Resources	0.033	79	$ 16,042,500.00
MTC	Metalstech Ltd	0.65	78	$ 108,114,293.45
IPB	IPB Petroleum Ltd	0.029	77	$ 10,105,646.04
RDH	Redhill Education	1.08	77	$ 52,881,874.24
AEE	Aura Energy	0.21	77	$ 83,822,892.72
KCN	Kingsgate Consolid.	1.59	76	$ 349,686,315.74
GGX	Gas2Grid Limited	0.004	76	$ 16,184,408.31
RMI	Resource Mining Corp	0.028	75	$ 9,125,034.30
HNR	Hannans Ltd	0.034	75	$ 80,239,224.53
MEB	Medibio Limited	0.01	75	$ 17,950,614.98
RRR	Revolverresources	0.335	74	$ 28,245,995.94
STK	Strickland Metals	0.059	74	$ 62,136,441.23
MAY	Melbana Energy Ltd	0.026	73	$ 66,832,659.65
PPY	Papyrus Australia	0.051	73	$ 21,813,243.97
LMG	Latrobe Magnesium	0.029	73	$ 38,101,280.28
GCY	Gascoyne Res Ltd	0.375	72	$ 94,141,111.50
AXI	Axiom Properties	0.105	71	$ 38,944,229.22
KP2	Kore Potash PLC	0.026	71	$ 17,261,953.62
BTR	Brightstar Resources	0.038	70	$ 14,951,525.98
QXR	Qx Resources Limited	0.017	70	$ 11,994,521.78
BPT	Beach Energy Limited	1.4275	70	$ 3,410,593,815.72

Last week, we bought your attention to the fortunes of Viagold Rare Earths (ASX:VIA), a $40m company which carries out rare earths processing operations on the Chinese mainland.

On August 27, the stock traded at 4.2c. Through to last Monday, it assembled a tidy 600% gain in the month of September.

Then it kept mooning — ripping higher by another 60% last week to close at 48c for an easy one-month 10-bagger. (Oh, and it has a 14-day RSI of 98 — that’s hot).

Throughout that heady rally, the only public announcement from the company was last Tuesday when got a speeding ticket from the ASX, and said it wasn’t aware of any information that would prompt such a rally.

Switching from rare earths to telco stocks, Tuas Ltd (ASX:TUA) — the ASX-listed, Singapore-based spinoff of telco heavyweight TPG Telecom — has had a big week, following the release of its annual report last Tuesday which showed a tripling in subscriber numbers to 392,000 over the past 11 months.

Shares in Tuas jumped by 31.27% on the day of the release and kept climbing, giving the stock a sharp breakout from its 12-month trading range and a 14-day RSI of 90.

At the big end of town, $3.4bn oil producer Beach Energy (ASX:BPT) made an appearance on this week’s list with an RSI of 70.

Prior to the stock’s recent rally, fund manager Michael Goldberg told Stockhead that he was snapping up BPT shares on a low valuation, after the stock got hammered earlier this year following a production downgrade.

Since that point the company has recouped most of those falls with a ~40% rally, accompanying bullish price action for energy stocks as oil prices hit three-year highs above US$80/barrel.

Running Cold

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, October 1:

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

Code	Company	Price	RSI	MktCap$
MEI	Meteoric Resources	0.0245	30	$ 32,094,997
BXN	Bioxyne Ltd	0.023	30	$ 14,723,344
PPK	PPK Group Limited	14.67	29	$ 1,367,911,969
GAS	State GAS Limited	0.32	29	$ 62,947,176
FFR	Firefly Resources	0.1	28	$ 30,833,953
NXT	Nextdc Limited	11.75	27	$ 5,493,552,949
FEL	Fe Limited	0.045	26	$ 35,772,281
LME	Limeade Inc	0.605	24	$ 151,092,414
ACP	Audalia Res Ltd	0.01	24	$ 6,921,362
NPM	Newpeak Metals	0.0015	23	$ 13,654,870
HMX	Hammer Metals Ltd	0.0605	23	$ 49,623,172
DOU	Douugh Limited	0.067	22	$ 31,594,163
AJY	Asaplus Resources	0.043	16	$ 5,848,000

Among the stocks on this week’s Running Cold list was PPK Group (ASX:PPK), where investors continue to hit the sell button after sending the stock more than 10,000% higher since 2017.

Following another week of selling, PPK shares closed the week below $15 — down from all-time highs above $21.

In happier news for PPK, it also owns a 45.3% stake in spinout company Li-S Energy (ASX:LIS), which is aiming to commercialised lithium sulphur battery technology and enjoyed a notably auspicious start to life as a public company last week.