“All Right. Don’t Panic. Don’t Panic.” - Every Big Techy probably 

(Source: Tenor) 

What comes up, must come down. And after yesterday’s Big Tech losses, (thanks Nvidia) dragging down the market with it, the simple law of physics was on full display. *Booo*

After following the tune of its longest winning streak of the year (eight straight days), the markets went full send south as the Nasdaq led the charge of a steep -1.6% downfall, while the Dow and S&P 500 followed suit with a -0.4% and -0.8% nose dive.

(Source: Wall Street Journal) 

The reason, mostly, was due to the fact that investors can’t multitask with anxiety and optimism at the same time. It’s like the dreaded “We need to talk” text we all got from our girlfriends in highschool, and being forced to wait all friggin afternoon to get the answer to the question we already knew was coming… 

Yet, this time it’s not the highschool cheerleader you’ve loved since 6th grade, it’s a 71 year old dude with his posse of 12, that’s got investors stomach’s dropping ahead of Powell’s key speech this morning. (P.S. I’m not speaking from experience btw…)

(Source: Giphy)

But alas, while investors rolled out of tech, as the weight of Nvidia’s -3.7% plunge also played a major part, one little company trading under $1 per share became yesterday’s “Diamond in the Rough”... literally. 

In short, shares of Lucara Diamond Corp, exploded north of +91% yesterday after the company  discovered a massive 2,492-carat panning rock diamond. See: Panning fanatics at your local state fair are absolutely throbbing with excitement right now… 

What’s interesting though, is while this legit looks like a regular ole rock my three-year-old rushes over to show me during our lake trips, it’s actually said to be the world’s second-largest diamond ever. (The largest being a 3,106-carat beast gifted to King Edward VII in 1905) 

Ladies and Gentlemen, the diamond … (Source: Yahoo Finance) 

As expected this new finding set off investor’s FOMO alarms like a Taylor Swift ticket drop day as the company’s market value shot up by over $40 million, proving once again that diamonds aren’t just my wife's best friend - but they’re a major catalyst for investors. 

Especially considering that according to Lucara’s CEO William Lamb, “This find not only showcases the remarkable potential of our Karowe Mine but also upholds our strategic investment in cutting-edge XRT technology.” Translation: The bold bet paid off for ‘em Cotton. 

(Source: Financial Times) 

In short, Lucara’s Mega Diamond Ray Recovery X-Ray Transmission Technology (XRT) is like the GOAT technology for diamond hunters. Initially installed back in 2017, Lucara’s cutting edge system basically gives miners the Superman X-ray vision, allowing Lucara to spot, scoop, and uncover massive, high-value gems without breaking the treasure.

Which is massive due to the fact that this has been a major challenge for miners, as extracting fragile gems without breaking them has been a bruising pain in the a$$ over the years. 

(Source: Giphy) 

But now, with this investment in XRT technology proving its worth, combined with the size of this diamond discovery, Lucara as a company is sitting nice and pretty as they exploit the Karowe Mine for all its juicy rocks. Especially since the Karowe Mine has been churning out big stones for years, including the 1,758-carat Sewelô and the 1,109-carat Lesedi La Rona. FYI, Lesedi La Rona went for a cool $53 million. Meaning with this latest find, this is a massive “W” for Lucara as this 91% surge helps recoup its -60.10% downfall over the last five years. 

(Source: CNBC) 

So with that said, what’s the takeaway here for investors?

Well given that the company has stolen the world stage spotlight, combined with their plans to keep digging into the EM/PK(S) kimberlite, in hopes of uncovering more gems… the stock definitely has momentum going for it. 

(Source: Kitco) 

But again, even with this massive story, the stock is still trading for only $0.32 cents per share. So it’s definitely a small cap, and while this cheap price clearly points to potentially large gains on the table - keep in mind, small caps can “cap yo a$$” with major losses just as fast.

(Source: Giphy) 

However, unlike similar stocks trading in that price range, (most of them garbage), Lucara Diamond actually did something to write-home about. They found a whole a$$ diamond, folks.

So do what you will with that information, but please… for the love of everything holy don’t be dumb. Especially considering Powell could set off a nuclear disaster in less than 40 minutes from now. 

In the end, stay safe and stay frosty, friends! Until next time… 

 

Stocks.News does not hold positions in any companies mentioned in the article.