Is Graphite Corp (GRPH) A Safe Investment As Per Today’s Market Condition ?

Thu, Feb 28, 2013

Graphite Investment In USA

In early 2012 graphite stocks were all the rage.

At the time shares of the early leaders in the emerging graphite sector were soaring too. Northern Graphite (TSXV:NGC) shares had gone graphite corp a good investmentfrom 80 cents per share to a high of $3.30 in six months. And the hottest IPO of the year was Flinder Resources (TSXV:FDR). It was financed at 50 cents a share and surpassed $2.50 per share on its first day of trading.

When your editor attended a graphite investment conference in February 2012, it was standing room only.

All the signals were clear to any contrarian investor – get out of graphite investments now.

Since then graphite stocks crashed back to reality. Northern Graphite and Flinders Resources shares have lost more than 60% of their value. And the dozens of smaller graphite companies traded for a few pennies per share.

But over time, most investors remember the good times and forget the bad times.

Frankly, the graphite euphoria made investors a lot of money quickly. And now the enticements of quick profits have attracted aggressive stock promotions still in graphite stocks.

The latest of them is Graphite Corp (OTCBB:GRPH).

This “company” has a few prospective graphite properties in North America and has attracted significant attention in the last few weeks.

It, however, has all the warning signs of a trend that will cost investors dearly.

First, it’s listed on the OTC Bulletin Board. Although not all companies on the OTCBB are fundamentally worthless, there have been enough highly-promoted stocks on this trading platform that any investment that trades that way should be treated with a great deal of caution.

Next, there have been plenty of regular and meaningless press releases. Apparently the company will be attending an investment conference. Is that press release-worthy news?

It also has almost no money. At last report it had a cash balance of about $310,000. That’s not enough to drill and develop a graphite project. To date Northern Graphite has invested more than $10 million into its project and still doesn’t know whether the project is a “go” or not.

Its web site has probably has had more time and spent on it than the actually property itself. This is always a warning sign because it shows the company wants to get investors excited about the huge opportunity in the sector and not focus on the company’s prospects.

usa graphite investment

Finally, it has been promoted heavily though various stock tout services. According to, a website which tracks stock promotions , there have been 124 e-mail blast promoting investors to buy shares of Graphite Corp. The promotions have cost anywhere between $10,000 and $60,000.

In the end, the prospects of Graphite Corp are extremely dim.

If historical patterns hold true, shares have fallen from 80 cents to 30 cents and it won’t be long until they are trading for less than 100 cents.

If you are an investor Looking For Graphite Investments, the following is a complete list of graphite stocks. The Graphite Stock list is not complete, but it includes a number of companies like Northern Graphite and Flinders Resources which have attracted management teams which have been successful in the past, millions of dollars of capital, and are in the later stages of development.

The graphite downtrend has been steady since early 2012 so I can’t recommend going against it. But if and when it does turn around, the most money will be the high quality graphite companies who spent their money developing a mine rather than e-mail blasts.

Visit Contrarian Insights For More information On Different Types Of Commodities

Good investing,


Andrew Mickey
Executive Editor, Contrarian Insights

Join Now

The Group of Big Investors in United States.

Your Email

is graphite corp a good investment

Like This?

Share This:

Facebook Twitter Share on Google+ Digg Reddit LinkedIn Pinterest StumbleUpon

Recent Post

How to Buy Commodity Stocks Online 2015 - Learn here it’s Safe to Investment in Commodity Market

The how to invest in commodities stock 2015 can correct any fluctuations that investors may have felt recently in their fortunes. The beginning of the year was on a shaky note with the direction of profits not very clear. However, with the months wearing on, the commodities market is once..... Read More...

Is Gold and Silver a Good Investment in 2015? Gold Coins Investment Best Idea for a Great Return

The is investing in gold a good idea right now is the hot conversation for small and big time investors alike. With the crash in real estate markets and the continued disfavor of bonds, gold is the only option which is fast emerging as the fail safe investment. Moreover, gold..... Read More...

Top 10 Best Stocks To Invest In Right Now in 2015, Learn Here How to Buy Stock Now

The top ten best stocks to invest in 2015 can help investors consolidate gains this year with a great margin. These are the stocks one’s would prefer to buy and hold onto for a long time. There are more winners here than losers which sped way past the rest..... Read More...

Best Investment Strategy for High Income Earners, Learn Here Investment Strategies for Buying Stocks

The investment strategies for high income earners are a few of the best special financial tips to help in wealth management. The top 2-3 per cent of the high income earners has a challenging task in holding onto their money and investment may be the only way out to avoid..... Read More...

How to Make Money in the Stock Market with Little Money for beginners, Future Wealth

The how to make money in the stock market with little money is a sure fire way to get out a less than perfect existence. It is a means other catapult in to luxury almost overnight as has been shown by many an investor in all times. Investing in the..... Read More...