Selling graphite electrodes for steel production in mini-mills, GrafTech will see its earnings soar as steel producers start to place orders again, which is likely in the coming months. The company, which has a $1.4 billion market cap, has remained profitable during the downturn, and its balance sheet is healthy. With just a few competitors, GrafTech slashed costs to conserve cash while steel producers ate through inventory. As inventory dwindles, investors need only wait a bit longer for well-managed and inexpensive (at 10 times depressed earnings estimates for 2010) GrafTech to benefit as steel mills fire up again.
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