The shares of GrafTech International Ltd. (NYSE:GTI) took a nosedive on Wednesday morning, with shares trading down 6% at one point in time. This fall comes after shares have rallied 22% over the last six months, and as a result of a downgrade by analysts at JP Morgan.
The real story to focus on, and what is really interesting about GrafTech's stock, is the confusion about the company and its role in developing a material called graphene. It seems that many investors have chosen GrafTech as an investment to gain exposure to this material, but GrafTech has a very small presence with respect to graphene. To put this in perspective the BBC reported that there are currently around 7,351 graphene patents issued or pending across the world, and GrafTech currently doesn't break into the ranks of the top 20 holders of patents related to the material.
In the video below, Motley Fool analyst Blake Bos discusses the recent downgrade by JP Morgan and, more importantly, how he thinks GrafTech stacks up to its competitors in the graphene space.
Blake Bos has no position in any stocks mentioned. The Motley Fool owns shares of GrafTech International Ltd. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.