The problem with buzzword investing is that it hardly ever provides on longer time horizons, barring occasional flukes. With the buzz around LK-99 now set down on a down spiral, the stocks that had actually tape-recorded exceptional gains in current weeks on the back of the manic effervescence around the room-temperature superconductor candidate are now due a brutal truth check.
As a refresher, LK-99 is a gray-black substance of lead, phosphorus, oxygen, and copper, officially referred to as copper-substituted lead phosphate apatite. In late July, a group of scientists hailing from Korea University claimed that the substance showed superconductivity at ambient temperature and pressure, owing to structural shrinking and the matching production of “superconducting quantum wells (SQWs)” as copper cations substitute lead cations within the insulating structure of lead phosphate apatite.
While social media soon became swarming with numerous replication videos that revealed LK-99 reacting to the repellant force of a magnet, nearly none had the ability to conclusively demonstrate the signature “magnetic flux fixation impact,” where a superconductor hovers over a magnet. Last week, a Chinese researcher did claim success in this regard but quickly diluted his initial assertions with a variety of caveats.
I anticipated that interest in LK-99 would simply pass away a slow death after nobody could duplicate it; seldom is a smoking weapon found that discusses the spurious observations.
But in this case it appears we have a complete coroner’s report!https:// t.co/ rPLbzXdrgV
— Prof. Michael S Fuhrer (@MichaelSFuhrer) August 9, 2023
This brings us to the crux of the matter. Possibly in what signifies a death knell for the buzz surrounding LK-99, a brand-new research study that was submitted on the 08th of August claims that the superconductor-like habits of the copper replaced lead phosphate apatite is because of the first-order structural phase transition of copper (II) sulfide– a commonly happening pollutant.
We noted in a previous post that some stocks listed on the South Korean stock exchange had been clocking in incredible gains over the hype surrounding LK-99. Now that this speculative wave has actually crested and is currently receding, these stocks are due a harsh correction, offered their still-lofty valuations.
The manufacturer of high-temperature circuitry and electromagnets, SuNam (KOSDAQ: 294630), is down nearly 19 percent today and over 31 percent in the past 5 days. However, the stock is still up an impressive 130 percent over the previous month.
Likewise, Mobiis (KOSDAQ: 250060), a company that is involved with nuclear combination and particle-accelerator technology, is down almost 2 percent today and about 25 percent in the previous 5 days. But the stock is still up over 23 percent in the previous month.
The growing pessimism around LK-99 has not even started to reflect in the stock rate of Shinsung Delta Tech (KOSDAQ: 065350). Consider the reality that the stock is still up nearly 15 percent today and 5 percent over the previous 5 days. The stock is up an impressive 157 percent over the past month.