$23.11 -0.64 (-2.69%)
11/27/2009 1:00 PM

Otter Tail Corp (OTTR)

CAPS Rating: 5 out of 5

The Company has interests in diversified operations that include an electric utility, plastics, manufacturing, health services, food ingredient processing and other businesses.

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Member Avatar WillGGH (78.67) Submitted: 8/25/2009 6:25:57 PM : Underperform Start Price: $24.49 OTTR Score: +12.66

The company is trading at more than 19 times the average last 5 years earnings, heavy capex dependant, bigger than noncash expenses, costs of production too volatile.

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Member Avatar Brett109 (41.74) Submitted: 1/14/2009 10:03:54 AM : Underperform Start Price: $19.46 OTTR Score: +12.31

Will underperform in the next couple of quarters until Obama's Green Tech iniative starts to gel and then it should turn around.

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Member Avatar racoveanul (81.28) Submitted: 6/1/2008 12:11:29 PM : Underperform Start Price: $34.76 OTTR Score: +14.77

Since I only do this on sundays...
I used Bates' DDM and project 30.40 for this stock.
I undertook my investigation of the electric utilities sector starting with the idea that this is a mature sector, probably the first to get out of any slump.

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Member Avatar RLUnderhill (< 20) Submitted: 7/29/2007 7:42:41 PM : Underperform Start Price: $27.03 OTTR Score: -6.48

Otter Tail is investing all the time. Their buying up companies to make them more diversified. I like the stock because in all the years we've held on to Otter Tail, it's given us a lot of money. It's a solid company.

We started with $300.00 dollars. We buy direct from Otter Tail. I like that way of investing.

I alway buy to hold. It's my own Mutual Fund.

OTTR is a keeper to me.

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Member Avatar NetscribeCnglmrt (< 20) Submitted: 3/1/2007 8:40:13 AM : Underperform Start Price: $28.66 OTTR Score: +2.82

Otter Tail Corporation is a diversified business conglomerate that collectively serves the customers in Canada and United states. With revenues of more than $1 billion and 3,500 employees it is organized into six segments with business interest ranging from electric utility, manufacturing, health services, food ingredient processing, plastics, construction to transportation

Consolidated revenues for the year 2006 grew 12.5% to $1.1 billion supported by growth in the manufacturing business. Food ingredient processing segment had a nightmare with a net loss of $4.1 million due to shortage of raw potato supply and the inability to run the processing plants at optimal level. However it expects a turnaround in 2007 with an export market for the same in the European region. Manufacturing is the only division that instills confidence and was busy with activities in 2006 increasing the production capacity of wind tower operations. Moreover the strong back logs and expansion of DMI’s Fort Erie, Ontario facility production capacity by 30% would be the driving forces for the segment.

Electric utility business had a tough year with revenues decreasing by 2.2% with decrease in wholesale energy revenues and lower profitably. Plastics growth had a 9% growth in revenues, as its price remained strong to offset lower volumes. The outlook for the plastics business does not look good with signs of weakening housing market and softening of industry resin prices due to over capacity.

Health services unit was a victim of increased cost relating to equipment maintenance, rental and sub lease, which couldn’t be passed with increased sales or volumes. The other business segment has had a new life with a net income of $0.9 million from a net loss $9.3 million in 2005. The construction boom and its low cost insurance company would help the company in the coming year. Though majority of the business units have good growth prospects, more than two-third of revenues are accounted by electric utility and plastic units whose business looks make the future of the company uncertain.

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Member Avatar Nobber22 (71.42) Submitted: 1/28/2007 11:13:58 PM : Underperform Start Price: $28.25 OTTR Score: -0.02

Plastics and Potato companies will put a drag on this fine company.

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Member Avatar iluvmy8gkids (36.34) Submitted: 8/30/2006 6:43:26 PM : Underperform Start Price: $26.68 OTTR Score: +2.58

I own it, and like the div with its potential to become a "discovered" stock. But when it will become discovered, I haven't a clue.

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Member Avatar tatsumaki4ryu (< 20) Submitted: 8/19/2006 3:39:35 PM : Underperform Start Price: $25.97 OTTR Score: +0.83

The comparisons to Berkshire Hathaway and Buffett are as cute as the otter.Unfortunately the bulls seem to be as financially knowledgable as....well....an otter.

- A reasonable PE of less than 16 is undercut by the estimated 5 year annual growth rate of 4.5% Which might be optimistic as it has grown at a NEGATIVE 0.1% the past 5 years annually. The PEG is over 3.

- The company has NO cash. As in zero. But it does have more than $319 million in debt. I thought Fools liked that in reverse.

-Yahoo says insiders own about 1% of the company. I could understand this low percentage if this was a massive global conglomerate. But it's a small-cap.

- It pays a nice dividend sure. But the payout ratio is 60%. Can it raise the dividend much more. What if bad times are ahead? Will the dividend be slashed?

The comparisons to Buffett just seem to be completely unwarranted. Investors in this stock are more likely to get rich by opening shellfish like the otter and hoping thereare pearls inside. And yes I had to end with a terrible otter analogy:)

Results 1 - 8 of 8

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