2024-02-08 05:25:00 ET
Summary
- Graftech is heavily exposed to the European economy, which has lagged in its recovery.
- We invested in mid-2021, expecting a stable market, which did not materialize.
- Today, Graftech is contending with an excess supply of electric vehicles.
- We may exit the position if the business does not recover by Q4 2024.
The following segment was excerpted from this fund letter.
Graftech ( EAF )
Unlucky, poor industry dynamics, and the largest shareholder, Brookfield selling. Upon making our initial investment, we were aware of the potential risks and volatility; we never thought a $2 stock price was something to worry about. As a low-cost producer, the current price implies competitors will likely go bankrupt. Instead, Graftech is the one ceding share. The Mexican plant shutdown had a far more significant impact than initially thought....
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For further details see:
O'Keefe Stevens Advisory - Graftech: Not In Their Circle Of Competence