Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified GrafTech International ( GTI) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified GrafTech International as such a stock due to the following factors:

  • GTI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.0 million.
  • GTI has traded 208,728 shares today.
  • GTI is trading at 6.15 times the normal volume for the stock at this time of day.
  • GTI is trading at a new high 16.67% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on GTI:

GrafTech International Ltd. manufactures and sells graphite and carbon material science-based solutions. It operates in two segments, Industrial Materials and Engineered Solutions. Currently there is 1 analyst that rates GrafTech International a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for GrafTech International has been 801,700 shares per day over the past 30 days. GrafTech International has a market cap of $541.6 million and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.29 and a short float of 9.2% with 13.77 days to cover. Shares are down 22.9% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates GrafTech International as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electrical Equipment industry. The net income has significantly decreased by 358.0% when compared to the same quarter one year ago, falling from -$7.63 million to -$34.94 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market, GRAFTECH INTERNATIONAL LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for GRAFTECH INTERNATIONAL LTD is rather low; currently it is at 18.68%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -13.41% is significantly below that of the industry average.
  • Net operating cash flow has decreased to $26.99 million or 49.58% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, GRAFTECH INTERNATIONAL LTD has marginally lower results.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 58.13%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 333.33% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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