My turn, then… I promised in this thread to find something for your appetite.
Allow me to offer here a new challenge for the community; I’ll post three pictures, waiting for your guesses. Regarding the mystery item, I’d like to know three things — so we can spice up the contest:
Here are the pictures, three close-ups.
Enjoy your game! 
I genuinely have no idea, so I’m just going to make something up that might have never even existed.
Is it an early refillable Staedtler Glasochrom, whose special power was to write on any surface and which came with different coloured buttons and/or rings to indicate the colour of the refill?
Eversharp Skyline
Early Repeater pencil
Pocket clip?
Fountain pen?
Sits down in the back of the class and hopes nobody notices me
Huh. Curious design.
I have .. NO idea. Not a clue. And I’m eager to see the upcoming guesses! 
Some observations to prod our imaginations:
First pic shows the tip in plastic (bakelite?) has a slot in it. I assume there is a slot on the other side as well. Perhaps the tip was gripping the lead.
The shape of the tip also reminds me of bakelite BAVARIA items.
Finally, the overall shape reminds me of Stabilo.
So glad you all took a chance…
Bad news is: no one got it so far, but I think many are circling around the final answer, so good job. A few more specific answers:
@Alan : what you mention does exist, I think, just not as old: it is the “Staedtler Lumocolor Permanent Twister” (Glasochrom 238 20-2), a small plastic tool holding fat lead for marking any surface and/or material — pictures soon;
@DarkwingDuck with “early pencil” you got on the right track; it is a repeater, in a sense, but it can swiftly defy any attempt at quick categorisation;
@cytherian speaking of design: it is, in a way, a very classic model, almost “bland”, like its colour; it may be bakelite, or some other type of plastic; clipless barrel, or at least the clip did not show up in the package (but something else did, and it was like in some Japanese boxes for high-rank pencils);
@amjacobs7 you are right about the geographical area, but the brands are off; still, great analysis of the picture. I can tell you it is German, but no swans involved. The function of the slot is to better grip the lead when in use, but it is not the main reason why the lead cores rest locked in the pencil mechanism.
Finally, and this may be or may not be a significant hint: the fact that I posted two pictures with very similar angle of the rear part of the pencil is not just a coincidence, but rather a reference to part of its charm, at least from an engineer’s standpoint.
Once again, up to the community…
Some sort of super mega retro Koh-I-noor lead holder of sorts?
I would not call it a lead holder — not in the usual meaning of the word, at least.
And, unfortunately, KIN does not show up anywhere in the pencil model, name, or correlations, at least to my knowledge.
Good guess, though. And I loved that “super mega retro”. I want many “super mega retro” pencils…
Reading between the lines of your hints just reminded me of something. It isn’t by any chance a Joseph Reckendorfer patent pencil that doubled as a holder for penknife blade, steel pen nib, etc?
This related 1884 Reckendorfer patent perhaps better illustrates how the lead would be gripped by internal jaws, with the external slot providing a stabilising friction fit.
The 1884 patent for the stabilisation may have had some impact on the final design, whereas the combination-pencil is way too far: this is just an old, “regular” pencil — and not a multi-pen or multi-pencil.
I can tell you that it uses 1.18mm lead cores (but you probably already know that).
I suppose the picture of you pulling up on the push button indicates that it is retractable?
Also, I will hazard another guess with Pelikan. Some features resemble Pelikan 50 model and body knock model. Plus, German.
That is veeeeery clever remark! Great intuition!
So, let me tell you a bit more about this tiny beast. This is basically the answer to question 2 above.
This pencil operates with relatively short lead, and they are gripped by a pair of tiny metal flanges kept inside the grey barrel; this means that the internals do not allow for lead advance as in a “modern” knock pencil — and by writing “modern” I am including here even specimens like the Pelikan Auch, the Pelikan 60, or some Geha MP’s, which were probably in @amjacobs7 's mind at this stage.
So, how does it work exactly? To begin with, think about a Pilot Protecs: by twisting the cap, you expose the writing tip, while by knocking the cap, you get the actual lead feed.
Now flip the logic completely: you knock the button to expose the very tip of the lead core (which is otherwise protected by the torpedo-like shell with the slot), and then you twist the pushbutton like in a twistaction pencil to adjust the length of the lead you want to espose.
Best of both worlds: full control of the tip length, but full protection of the core when not in use. This is why I love this pencil: it is a counterexample to almost everything we know about modern contraptions with tip-protection mechanisms. Plus, this ingenious technical solution completely makes up for the very unassuming colour combination.
Keep on trying, we are getting there… 
I think many of you are now closer to the solution regarding the brand: we ruled out many serious German contenders, but a few are still running; it is not Pelikan, nor Staedtler, nor Schwann-Stabilo; you can strike out as well Faber-Castell and rOtring, and Geha. I know there is still plenty of makers to sift through, but…
One final idea before I give up: could it be a pencil to this 1915 patent by Fricke & Bachmann?
That would make it one of the earliest designs with a cap, and a cap that engages the lead advance button at that! (spiritual ancestor of the Pentel Kerry?)
I have no idea who would have made it, given the number of non-candidates listed above. Lyra perhaps?
We need a video of this in operation.
You’re making me want to have this pencil for myself. Your descriptive analysis and the excitement you have is felt through the screen.
I must share in this excitement!
YES!
We have a winner! The pencil which eluded the contestants so long was a Lyra “Klimax”.
A couple of pictures here:
Also, the pencil originally came with its own tiny lead container, and it is the cutest thing ever:
The Lyra Klimax was probably considered some sort of high-end mecha at the time, or I would not be able to explain the name given to this object by the makers. I bought it many a moon ago on Tom Westerich’s website, after rummaging through a long sequence of repeater and twistaction pencils.
It is nicely balanced, with almost perfect diameter and length; I consider it a writer, but with this lead extension system it could have been as well used as a drafter.
Thank you for this amazing ride, and now I pass the torch to the winner for the next round.
‘KLIMAX’ indeed!
Well that was a lucky guess - the right maker, but the wrong patent! I have never seen one of these before, nor the fancy lead container. They must have been quite expensive in their day.
I’m assuming the correct patent is this one, with its complex twist/push mechanism. Interestingly, there seems to have been an even earlier Lyra-Klimax pencil, as seen here on flickr, accompanied by an advertisement from 1891. It’s possible that this relates to these Lyra (Johann Froescheis) patents from 1883 and 1885.
Climax seems to have been quite a popular name around this time, see for instance this “Climax” T square (not to mention the Climax Cellar Drainer and the Climax Instantaneous Vice).
Anyway, I’m now feeling a bit like 1990s-era Ireland in the Eurovision Song Contest, obliged to come up with yet another mystery pencil from my frankly chaotic collection. Fortunately I have just photographed something for a forthcoming post that I hope will prove suitably challenging. See you over there shortly!
