For the better part of a decade, the potential business case for virtual\/augmented reality has stayed on the investor radar without many material developments.<\/p>\n
But ASX small cap investors have latched onto the theme in November, with two VR-adjacent plays running hot to close out the month.<\/p>\n
Each week,Stockheadrecaps ASX stocks that are running hot as deduced by the Relative Strength Index (RSI).<\/p>\n
The RSI is a technical gauge which measures how trading momentum is affecting the price action.<\/p>\n
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.<\/p>\n
Click herefor a more detailed rundown of what the RSI does and how its used.<\/p>\n
While theres 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.<\/p>\n
Heres a summary of the stocks that were running hot for the two weeks ended Friday, November 26:<\/p>\n
Indoor Skydive Australia (ASX:IDZ) has been mooning this month up almost 200% since November 1.<\/p>\n
Recent demand for the stock resulted in a red-hot 14-day RSI of 90, and it forms part of what looks like a recent trend among ASX investors to snap up small caps with exposure to the VR\/AR (virtual reality\/augmented reality) thematic.<\/p>\n
Back in August, IDZ announced plans to acquire virtual reality production studio Red Cartel, which built a VR free-roam game for IDZs VR-themed FREAK entertainment business, and also had a military VR training tool under development.<\/p>\n
Earlier this month, the company opened its fourth FREAK complex at Macquarie shopping centre in North Ryde, Sydney.<\/p>\n
It also announced the appointment for former high-ranking military official Mark Smethurst as a non-executive director, as it targets the global market for military and law enforcement simulation products.<\/p>\n
Elsewhere in the VR\/AR space, Vection Technologies (ASX:VR1) posted a 14-day RSI of 80 and has almost tripled over the past month.<\/p>\n
The company is involved in developing VRs use-case for sectors such as construction and industrial production.<\/p>\n
This week the company rolled out its FrameS Metaverse release, as part of its app integration with Webex by Cisco.<\/p>\n
The aim of the new features is to enable clients to build out virtual 3D models for new projects, through a platform where people participate from anywhere in the world using Ciscos Webex video conferencing platform.<\/p>\n
Vections COO Gianmarco Orgnoni caught up with Stockhead to discuss the latest developments in an interview earlier this week.<\/p>\n
Heres a summary of the stocks that were running cold for the two weeks ended Friday, November 26:<\/p>\n
Among stocks running cold, semiconductor play Archer Materials (ASX:AXE) shivered after steady declines through the month of October.<\/p>\n
AXE made an appearance on the Running Hot list back in August, when the stock mooned as high as $2.66 following a series of patent announcements.<\/p>\n
On either side of its AGM presentation last week, the stock continued sliding and closed on Friday at $1.20.<\/p>\n
Also running cold was BNPL player Laybuy Holdings (ASX:LBY), as the broader sector comes under a sustained bout of pressure heading into the end of the year.<\/p>\n
Shares in LBY have fallen on 14 out of 20 trading days so far in November to close on Friday at 30c.<\/p>\n
In September 2020, the New Zealand based company ripped higher on debut after raising $40m from investors at $1.41 per share.<\/p>\n
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Hot Money Monday: Virtual reality stocks shine bright while BNPL hits the skids - Stockhead<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" For the better part of a decade, the potential business case for virtual\/augmented reality has stayed on the investor radar without many material developments. But ASX small cap investors have latched onto the theme in November, with two VR-adjacent plays running hot to close out the month. Continue reading