Louis Navellier and GTI

This is another lesson from Louis Navellier about how to turn a 100% gain into a break-even.

You may remember one of the latest spams from Louis here. He was writing:

When GrafTech jumped from $6 to $9, my readers banked $5.000 for every $10.000 they invested-all in just 12 weeks.

The problem is that when GTI jumped to $9 Louis Navellier was saying "Buy Below $10.50".

Have a look at the chart showing Close Price and Navellier's Buy Below over this trade time:

And here is what Louis Navellier wrote to his $5.000/year Quantum Growth subscribers:

November 24th 2008

GrafTech International (GTI) is the U.S.’s largest maker of graphite electrodes. The company’s synthetic graphite division makes graphite electrodes and cathodes that are used as components in conductive power systems used to produce steel, aluminum and other non-ferrous metals. GrafTech also makes specialty products for transportation and semiconductor applications. The company’s other division makes flexible graphite products, flow field plates, gas diffusion layers, and carbon electrodes and refractories. Its customers include Alcoa, Ballard Power Systems, Cisco, MEMC Electronic Materials, and Nucor.
How’s this for a value stock? Shares of GrafTech are currently going for about two times next year’s earnings estimate. The stock is a good buy.

December 15th

Despite all the tumult last week from the on-again/off-again auto bailout to the Bernie Madoff scandal, our Quantum Growth stocks continue to do well. GrafTech (GTI) and [removed] are already big winners for us, up 35.5% and 49.6%, respectively. Clearly, the cream is rising to the top.

This week's Top 5

5. GrafTech International (GTI) is the country’s largest maker of graphite electrodes. The company’s synthetic graphite division makes graphite electrodes and cathodes that are used as components in conductive power systems used to produce steel, aluminum and other non-ferrous metals. GrafTech also makes specialty products for transportation and semiconductor applications. In just three weeks, the stock is turning into a nice winner for us. GrafTech is a very good buy. [at $6.79]

December 29th

GrafTech International (GTI) was highlighted last week on CNBC by Mark Parr of KeyBanc Capital Markets. He confirmed what I've been saying all along: Steel stocks are grossly undervalued. The steel industry in general has spent the last several months consolidating, and I expect steel stocks to make a strong comeback in 2009. GrafTech trades at less than 4.1 times trailing earnings and is a good buy. [at $7.17]

January 5th

... and GrafTech (GTI) is a 73% winner for us so far. Please take partial profits in stocks that have done well so you have enough money for our new buys. Buy Below $10.58.

February 2nd

Top 5 stocks of the week

3. GrafTech International (GTI) continues to be an outstanding stock for us. Last week, Longbow upgraded GTI from “Neutral” rating to “Buy.” On Tuesday, Touchstone Research Laboratory announced that it granted GrafTech a license under its carbon foam tooling patents for composite tooling. This is significant since Touchstone is an award-winning supplier of materials testing, industrial problem solving and outsourced R&D services to commercial and government customers. Graftech continues to trade at barely 4.3 times trailing earnings and is a good buy. We’re currently sitting on a gain of almost 50% in this stock after about two months, and I’m confident this is only the beginning!

February 9th

GrafTech International Ltd. (GTI) continues to be a really big winner for our Buy List. The stock is currently up over 78% thanks to its role in the graphite electrode market. Graphite electrodes are used in the production of steel made in electric furnaces, which account for 31% of worldwide steel production. Our steel stocks rallied impressively last week, and GafTech closely followed suit. GTI continues to trade at barely 5.3 times trailing earnings and remains a good buy.

March 2nd

Sell GTI