Hot Money…Tuesday: The most in-demand stocks on the ASX right now

Each Monday (yes we know it’s Tuesday), 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 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.

Here’s this week’s list:

Running Hot

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, January 24:

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

Big River Industries (ASX:BRI)

The timber company continued its multi-week reign at or near the top of the Hot Money rankings, this week posting a red-hot RSI of 95.41.

The stock has climbed steadily from around $1.20 in November to its Friday close above $1.70, following another steady increase last week.

But despite that, demand for BRI shares still hasn’t been driven by any key market-moving announcements.

In fact, Big River hasn’t provided any updates since December 10, when the company said it was introducing a dividend reinvestment plan for eligible shareholders.

Running Cold

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, January 24:

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

Leigh Creek Energy (ASX:LCK)

The gas explorer slipped into this week’s Running Cold list, as the stock price continued its recent loss of momentum to start 2020.

Shares in Leigh Creek hit a 12-month high above 40c last May, after the company said it had proved up a gas resource as large as the Cooper Basin.

But investors cooled on the stock in the second half of last year, as the company continues to look for commercialisation pathways.