The hope surrounding the miracle room temperature superconductor candidate LK-99 is beginning to crumble

The problem with buzzword investing is that it rarely delivers over longer time horizons, barring the occasional fluke. With the hype surrounding LK-99 now in a downward spiral, the shares that had recorded remarkable gains in recent weeks on the back of the manic effervescence surrounding the room-temperature superconductor candidate are about to face a brutal reality check.

As a refresher, LK-99 is a grey-black compound of lead, copper, phosphorus and oxygen, formally known as copper-substituted lead phosphate apatite. In late July, a group of researchers from Korea University claimed that the compound exhibited superconductivity at ambient temperature and pressure, due to structural shrinkage and the corresponding creation of "superconducting quantum wells (SQWs)" as copper cations replace lead cations in the insulation. structure of lead phosphate apatite.

While social media soon abounded with several replication videos showing the LK-99 reacting to the repulsive force of a magnet, almost no one was able to definitively demonstrate the signature "magnetic flux fixation effect," in which a superconductor hovers over a magnet. Last week, a Chinese researcher claimed success in this regard, but soon diluted his original claims with a number of caveats.

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This brings us to the crux of the matter. Perhaps in what amounts to a death knell for the hype surrounding LK-99, a new study submitted on August ⁸ claims that the superconductor-like behavior of the copper-substituted lead phosphate apatite is due to the first-order structural phase. transition of copper(II) sulphide – a commonly occurring impurity.

We noted in an earlier post that some stocks listed on the South Korean stock exchange had clocked phenomenal gains over the hype surrounding LK-99. Now that this speculative wave has peaked and is already subsiding, these stocks are due for a brutal correction, given their still high valuations.

High-temperature wire and electromagnet maker SuNam (KOSDAQ: 294630) is down nearly 19 percent today and over 31 percent over the past 5 days. However, the stock is still up an astonishing 130 percent in the past month.

Similarly, Mobiis (KOSDAQ: 250060), a company involved in nuclear fusion and particle accelerator technology, is down nearly 2 percent today and around 25 percent over the past 5 days. But the share is still up over 23 percent in the last month.

The growing pessimism surrounding LK-99 has not even begun to reflect in the share price of Shinsung Delta Tech (KOSDAQ: 065350). Consider the fact that the stock is still up nearly 15 percent today and 5 percent over the past 5 days. The stock has risen an astonishing 157 percent in the past month.