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Lindsay the Company of the Future PART 1 of 2 (Irrigation)

August 15, 2012 – Comments (0) | RELATED TICKERS: LNN , DE , CAT

Lindsay Corporation is a must in your portfolio due to the length of profits they can continue to bring into your life for years to come.  There are two major segments that Lindsay provides Irrigation and Infrastructure.

Irrigation –

This is the largest segment of the business and has a firm grip on the industry due to the prior network and innovation they provide to farmers nationwide.  Lindsay is known for the sale, installation, repair/parts and control equipment of pivot and lateral spray irrigation. Both the U.S. and worldwide markets are a constant growth play and will continue to be a massive growth play for years to come.  Why do I believe the growth is so great?  Please follow me on this journey…

Farmland West of the Mississippi      18% Irrigated

Farmland East of the Mississippi        7% Irrigated

Based on the 2008 USAD Survey

In 1998 35% of cropland was irrigated by pivot/Lateral Irrigation

In 2008 46% of cropland was irrigated by pivot/lateral Irrigation

Why are these types of irrigation methods growing?  The most common form of irrigation in the U.S. and worldwide is called Gravity/Furrow irrigation.  The downside of this type of irrigation is it uses a ton of water, much more than the irrigation methods Lindsay provides.  With so many droughts happening worldwide and the lack of water in certain areas of the Earth that will be needed for cropland, Lindsay’s type of irrigation is the desired method.

Replacement growth in North America –

There are 220,000 pivots in North America that are over 10 years old.

Not only will repairs and replacements are on the horizon but technological upgrades will be an option as well.  Farmers of the past are rolling over in their graves in envy of what Lindsay is bringing to the market.  Now a farmer does not need to stop what he/she is doing and start/stop, check on the status or make sure the irrigation equipment is covering the correct amount of land due to a SMARTPHONE APP!  By your Smartphone you can now get a real-time status of the irrigation machine in which you are using and can even start and stop the irrigation. 

An estimated 91% of the farmland worldwide is irrigated by gravity-flow, this is almost an untouched market for the products Lindsay is offering.

 

The second part of the Irrigation story is Watertronics, this is a subsidiary of Lindsay Corporation.  Watertronics offers a large array of water products:

Water Treatment

Water Harvesting

Municipal

Agriculture

Landscape

Golf Courses

     The areas in which are exciting: Landscaping, Municipal, Water treatment and water harvesting.

     Landscaping –

     Landscaping business might seem boring, full of small profits and much more.  The exciting part of this side of the business is when it comes to housing.  If you are looking for a way to play the housing rebound, landscaping!!  Providing a pumping system that has been offering outstanding service for over three decades.  This water pump can provide water to landscaping for malls, subdivisions, schools, parks and housing complexes. 

     Municipal –

     The pumps systems that are provided can supply water to cities, towns, villages and skyscrapers.  Sounds like they have this market solidified and what a market to be in, water will be the next gold of the 21st century.

     Water treatment and water harvesting –

     With water becoming more and more scarce worldwide, this company provides filtration systems that can remove almost anything from water.  Water harvesting component of the organization has seen the need for the conservation of water, and maximizes the way to gain water from major cities to the outskirts.     

     Overall, this company provides an outstanding range of products to serve cropland, residential and recreational with high quality services.  The market in which they are currently in and which they will be gaining more share in will be a prime market for years to come.

     This is part one of two, the second part of this exploration into Lindsay Corporation will look into their Infrastructure segment.  If you are looking for more insight into this company please feel free to write a comment.