Ultrahisham
2023-08-03

Is that a bird or a man? Or is it superman? Wait - Its actually superconductivity! 

If the script for American Superconductor was available for the past few days, it will go something like this. First off, nobody notices it. Suddenly out of the blue, someone notices something and starts a frenzy figuring out what it is. Is it a bird? 

Somebody then figures out it looks like a man! And more starts to join in the frenzy. A man who flies! That is sensational. More starts to join in the party and the smart one starts to say 'There is no man who can fly like that. It must be superman!!!!' And then a whole stampede of people joins in pushing up the stock parabolically!

Then at the peak, somebody throws in the sock and says 'Its just superconductivity!'. And with that along with the general market selldown, Mr American Superconductor rockets back to Earth. Can it recover and resume its uptrend again? Honestly, its hard to tell. Especially with the way the price acts and the uncertainty in the market. To me, it is a speculative play. And not really one you want to hold if you want to sleep well!

To the sciency ones, let me share the definitoon of superconductivity if you want to find out more about this phenomenon. According to the Office of Science, a branch of the US department of energy, 'Superconductivity is the property of certain materials to conduct direct current (DC) electricity without energy loss when they are cooled below a critical temperature (referred to as Tc).'

So to put it simply, it is the usage of substances which conducts best without losing energy (and saving money) below a certain temperature. Two ways to achieve this. The most common method is to run the components in a 'cooled state' using supercooler systems achieved with fans or liquid cooling system. This can be costly as energy is required to run the cooling system. The other way this can be achieved is by finding materials that can conduct well without needing to be cooled. So if the critical temperature is say 35 degrees celsius, that will mean that there is no need for a cooling environment. How awesome is that! Any company that can achieve this feat will be able to profit much especially if they hold a patent for the material! Hence the frenzy with American Superconductor. 

But as we know, it is not as simple as that. People and governments don't like monopoly (unless its the game!) so they will try not to let any organisation corner them especially if its an important discovery.

So lets be rationale and stay level headed!

Disclaimer: Please kindly do your own due diligence as this is a sharing article and in no means financial advise. I am just sharing my opinions and thoughts.

Thanks for reading my commentary. Hope it helps!

Stay safe! 😊

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How long will AMSC frenzy last?
The emergence of the superconductor revolution alongside the growth of AI represents a significant market-driving narrative in the technology and scientific communities. ---------- What is superconductivity? Will you bet on the new meme stock?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • ALLinOne
    2023-08-05
    ALLinOne

    according to many noted labs and researcher teams around the world, verification about superconductivity latest disappointed us.

  • WebbBart
    2023-08-03
    WebbBart

    After the pullback the market will come back yeah!

  • Aqa
    2023-08-04
    Aqa
    Congrats Trending! Congrats 50! Lcsh done! Go top! 👍🏻
  • ChrisColeman
    2023-08-03
    ChrisColeman

    market needs rest it is not a bad thing. keep holding

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