GraphTech International (GTI)

Company

"GrafTech International Ltd. is one of the world's leading manufacturers of carbon and graphite products for industrial applications in a diverse array of industries: metal production, electronics, chemicals, aerospace and transportation, among others. Our products, which include carbon and graphite electrodes, carbon and graphite cathode blocks, advanced carbon and graphite materials, and flexible graphite, are manufactured on four continents and sold in over 70 countries around the world. Continuing a century-old tradition of global leadership, the employees of GrafTech are united in their dedication to common goals: continually improving productivity, maximizing profitability and delivering the highest levels of quality and value to our customers." (company website)

GTI stock chart

Buy

10-Aug-05. I have been watching GraphTech since it broke loose about a month ago, but I have held off buying until earnings were released, inasmuch as that often leads to unpleasant surprises. When GTI finally released earnings on 4-Aug, they didn't look great (to me) in comparison to the previous year, but the market seemed to see something more than I did. So, after yesterday's solid jump on big volume, I decided to buy in at market at the open this morning.

I usually buy with limit orders, but in the case of a stock that is taking off, I often get left behind. So, I ran the risk that I would overpay and bought at market.

  • Price momentum (PPO) — strong, with a big surge this week
  • Trend (ADX) — strong trend up, with a jump in buying pressure (+DI) this week
  • Money flow (CMF) — strongly positive
  • Relative strength (RSI) — strong for past month
  • Volume — increasing in last two weeks

Sell

loss Bottom line
-16% all lots

12-Oct-05. Held on too long. GTI began losing price momentum right after I added to my position. Other negatives soon appeared in the chart as well: selling pressure (-DI) crossed above buying pressure (+DI), cash flow (CMF) turned negative, relative strength (RSI) fell.

The penalty for ignoring all those signs is a loss instead of a nice profit on the first lot, had I sold when I should have.

GTI 1yr chart
GTI 1-year chart