Whisky manufacturer Lark Distilling Co (ASX:LRK) kept things warm during winter, leading a group of 25 stocks that posted a 14-day RSI above 70 last week.
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, July 23:
Scroll or swipe to reveal table. Click headings to sort.
Code Company Price RSI MktCap$ LRK Lark Distilling Co. 4.80 92 $ 312,964,512.64 CKA Cokal Ltd 0.105 88 $ 78,589,496.61 AFW Applyflow Limited 0.008 87 $ 14,494,829.91 OEQ Orion Equities 0.41 86 $ 6,416,183.48 YFZ Youfoodz 0.915 85 $ 123,110,933.22 EPD Empired Ltd 1.315 84 $ 209,995,089.45 RBX Resource B 0.165 83 $ 5,771,089.45 WSI Weststar Industrial 0.03 82 $ 29,264,296.47 DRE Drednought Resources 0.062 81 $ 128,871,171.57 GRR Grange Resources 0.83 81 $ 954,804,425.85 FEL Fe Limited 0.11 80 $ 67,194,722.30 OKR Okapi Resources 0.375 79 $ 18,672,020.85 AXE Archer Materials 1.365 79 $ 297,157,042.53 PDI Predictive Disc Ltd 0.15 78 $ 202,510,782.30 AE1 Aerison 0.225 77 $ 70,365,622.24 KOR Korab Resources 0.026 77 $ 8,312,324.53 POS Poseidon Nick Ltd 0.13 74 $ 309,035,633.72 FTZ Fertoz Ltd 0.23 74 $ 41,843,101.25 SGC Sacgasco Ltd 0.051 73 $ 21,964,692.86 XF1 Xref Limited 0.47 73 $ 85,685,346.09 TOY Toys R Us 0.16 73 $ 135,737,417.28 PSC Prospect Res Ltd 0.33 72 $ 124,645,148.88 PGL Prospa Group 1.21 72 $ 199,029,115.12 NGS NGS Ltd 0.335 71 $ 15,768,350.58 ARN Aldoro Resources 0.47 70 $ 35,024,548.31
Tassie whiskey company Lark Distillery (ASX:LRK) topped this week’s list, after a solid run in July which has seen its shares climb from around $3.20 to Friday’s closing price of $4.80.
The stock posted some solid gains around the release of LRK’s 4C filing last Wednesday, where management flagged a push towards cash flow break-even over the next 12 months and said debt financing discussions with a number of the major banks are ongoing.
For the June quarter, Lark Distilling posted net cash outflows of $3.8m from customer receipts of $5.17m.
Metallurgical coal company Cokal Limited (ASX:CKA) also ran hot with a 14-day RSI of 88. Like Lark, CKA has put together a solid run to open FY22 with its shares climbing from around 6c to 10.5c.
CKA has multiple coal interests in Indonesia, Mozambique and Tanzania and its shares ripped higher by more than 20pc last Friday on no news.
Last Tuesday, CKA announced the first $2m drawdown of a $20m debt facility it’s using to fund the Bumi Barito mineral coking coal project in Indonesia, where production and sales are expected to commence in the December quarter.
Nanocap recruitment tech platform ApplyFlow (ASX:AFW) also popped up on this week’s list, with little news flow over the past two weeks.
Earlier this month, the company announced a fully underwritten pro-rata entitlement offer to raise $5.6m in order to fund “continued growth and product development”, AFW said.
Running Cold
Here’s a summary of the stocks that were running cold for the two weeks ended Friday, July 23:
Scroll or swipe to reveal table. Click headings to sort.
Code Company Price RSI MktCap$ ARD Argent Minerals 0.032 30 $ 28,936,021.09 HLX Helix Resources 0.021 30 $ 26,397,439.26 SWF Selfwealth 0.38 30 $ 85,374,604.50 PPY Papyrus Australia 0.02 30 $ 8,554,213.32 MVP Medical Developments 4.00 29 $ 286,483,981.44 ONX Orminexltd 0.031 28 $ 16,436,835.72 AGR Aguia Res Ltd 0.039 28 $ 13,014,005.16 MAN Mandrake Res Ltd 0.094 27 $ 38,968,394.56 APV Appsvillage 0.053 27 $ 5,201,043.26 ELE Elmore Ltd 0.023 26 $ 14,698,500.12 1AD Adalta Limited 0.094 23 $ 24,272,778.22 AML Aeon Metals Ltd 0.056 23 $ 38,621,474.44 BLG Bluglass Limited 0.0295 23 $ 29,094,093.20 GMN Gold Mountain Ltd 0.021 22 $ 18,425,398.18 MMI Metro Mining Ltd 0.016 22 $ 39,176,189.57
Share-trading platform SelfWealth Ltd (ASX:SWF), which listed on the ASX in 2017, was among the stocks running cold after falling from around 48c to 38c so far in July.
Last wek, SFW announced firm commitments for a $10m share placement along with a $2m share purchase plan at 39c per share to invest in product development as it looks to diversify its revenue channels.
Earlier this month, the company said it’s on track to roll out a cryptocurrency investment option by year-end.
The post Hot Money Monday: Tasmanian whisky group Lark Distilling heated up in July appeared first on Stockhead.
