Alchemist & Man4heart :

I would like to know your Opinion. Graphite India Ltd. had 20% increase in share Price on last Friday. I own about 4000 Shares of the company though bought it at a much higher Price of 78. Please comment.

http://www.graphiteindia.com/about.htm

Gracias (Thank you)!

-This script is trading in Up channel.
-Last 2 days accompanied huge volumes.
- Price has retraced to 50% of fibonnaci target 70/-
- It may not rise beyond 77.5/- which is 61.8 % fibonnaci target.
- Hold it with stop loss at 60(where it will break the channel) or 200 day EMA =63.8, a close or dip below it, I suggest selling & cutting your losses.

Rest is your money.

At CMP, this stock is a good dividend-yield stock.

I doubt Graphite India can maintain current earnings and dividend rate.

Graphite India's main business is manufacturing graphite electrodes.

Graphite electrodes are used primarily in electric arc furnace steel manufacturing.

Two days back, it was reported that Arcelor Mittal has to curbed production to protect prices.

If this is where the steel industry is going, it is unlikely that the graphite electrodes industry will remain unaffected.

Look at what happened to HEG....the stock lost 15% yesterday...down from 187 to 159 in a single day.

HEG has a similar size and valuation as Graphite India.

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Graphite India has shot up around 12% today - wonder what's happening.

Came down after that and ended up with a net gain of 5-6% by EOD. Luckily I was able to sell half my holdings at the days high.