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.

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 $3.3 million
  • GTI has traded 395,714 shares today
  • GTI is trading at 14.9 times the normal volume for the stock at this time of day
  • GTI is trading at a new high 12.009237646393000176203713635914027690887451171875 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in GTI with the Ticky from Trade-Ideas. See the FREE profile for GTI NOW at Trade-Ideas

More details on GTI:

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

The average volume for GrafTech International has been 761,600 shares per day over the past 30 days. GrafTech International has a market cap of $604.7 million and is part of the industrial goods sector and industrial industry. Shares are down 12.7% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

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 195.8% when compared to the same quarter one year ago, falling from -$28.22 million to -$83.48 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 22.66%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -32.12% is significantly below that of the industry average.
  • Net operating cash flow has decreased to $38.01 million or 26.41% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 63.74%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 190.47% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

null