Oil-Dri Corp of America (NYSE:ODC)

It currently has a dividend payout of 3.2% and is the leading provider of kitty litter--a nned that is not going to disappear. Usage should go up as industrial activity increases. I look for an slight decrease within the next month and then increases in 1-2 year range.

Kitty litter FTW.

Strong little company, unknown, Short interest crazy high

Good value

In my informed opinion, this company's health depends on its claim on its main natural resource. Thing is, the company doesn't own much of this resource outright and is dependent on mineral lease agreements, according to its filings. It looks like any problems with a small number of leaseholders could stop the company in its tracks. Its other dependancy is fossil fuel, there is no other way to produce the product other than burning massive amounts. I won't be investing and I'm surprised many are so positive about it.

Strong balance sheet with zero debt

Member of the "Mini-Cap Monsters."

5-star micro-cap. Sells cat litter, clay, sports field products, materials for filters (municipal water filtration sands, etc) and related chemicals. Boring as hell but solid as a rock - a bag of chemical-absorbing rock!

cash producer. i am waiting for buffet to buy it like friut of the loom. i bought at 28 cent and got bought out at about 1

Reload after plus-five. See canned "accuracy" rant at http://caps.fool.com/Blogs/ViewPost.aspx?bpid=4381&t=01001607032191429882

On ODC, I (still) think their little clay business is 'cheap' -- but that it should be cheaper.

There is still profits in this company's operations.

great management

+

Following another fool

5-star $108 million market cap on 11/4/06
5STARsmallCAPS picks five star stocks with the smallest market caps.

Drop in energy costs will really help

Small company with boring, stable, diversified business; dominates its industry; pays a great dividend, trading close to book value

Peter Lynch talks about buying "disagreeable" companies. Well, I can't think of anything more disagreeable than kitty litter. This definitely isn't the kind of business that you will want to tout at a cocktal party in Silicon Valley - unless you are me and you want to shock folks into thinking about stocks in a different light - but it is a solid pick and a company to outperform for the longterm.

Now, I wish I could have "bought" this a few weeks ago when the price was lower, but that $100M market cap requirement got in the way. Can we do away with it?

So, what do I like about this stinky stock?

Well, let's start with the dividend. At 2.9% I am getting some serious payment just for holding the stock.

At revenues of $199M and and a market cap of $103M, I am getting the stock at about 1/2 trailing revenues.

Throw in that we are trading just a bit above tangible book value (which is likely understated due to a major asset being the clay pits, which would be more costly to replace), solid free cash flow, and a strong competitive moat, I have to love my cat's choice!

-Split should help with buybacks.
-Dividend keeps increasing
-Decent moat around this business