Otter Tail Corp (OTTR)

Cramer has a very large audience that hang on his every word. Whenever Cramer does a segment on a company you can usually expect a bounce the next day. Infact you can bet on it.

The BOOYAH bounce is magnified when the stock is obscure and has low trading volume.

Case in point, Atlas (ALN), a small NatGas company, bounced 20% immediately after Cramer did a segment on it and the Marcellus shale. Buy in at the opening, ride the bounce, and then sell a couple days later. I don't expect 20% out of OTTR but I do expect an easy 5%.

Booyah Jimbo!

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:)

This company is good solid value for the long haul. If you want to have a virtually stress free ride over the next ten years then Otter Tail is a great selection. Steady dividends combined with an excellent leadership core will provide you with lots of smile from here through 2016 and beyond.

Who couldn't love a company with an Otter for a mascot?

Well, there is a lot more here than a cute aquatic mammal to like.

Here is a company which picked up Warren Buffett's business model from BRKA/B and is executing it with a vengence. Where Warren is trying to get into the utilitity business OTTR started here and is building a great portfolio.

Because of its size, OTTR doesn't need to go for the huge deals (unlike BRKA/B) to make things happen. A $20 million revenue company fits quite well in the OTTR portfolio.

So, we have a company with stable, growing cash flows; in a bunch of boring industries; and located two to three flights away from the centers of power. How can we lose?

Major provider of nuclear power in area of growing energy demand. Recognition that this is green, very reliable and safe slowly coming. Key is getting next plant(s) going earning the government incentive award.

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.

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.

This is such a fun little company to follow! Electric utilities, heavy construction, wind tower design, PVC pipes, and freeze-dried potatoes... Otter Tail is pretty much immune to single-sector downturns.

Wonderfully diversified small-cap; matches stable cash flow businesses with specialty growth and niche ventures; nice dividend

Otter Tail Corporation engages in the production, transmission, distribution, and sale of electric energy in the United States and internationally. As of December 31, 2006, it served approximately 129,000 commercial, residential, and industrial customers.

Conservative management, constant dividend, wind power, it adds up to growth with a margin of safety with the utility portion of the company providing a base of earnings.

Making big news today (6/5/08) at Houston (my home town) wind energy conference. OTTR is announcing major expansions subsidiary DMI's turbine tower construction facilities in ND and OK.

http://biz.yahoo.com/ap/080604/nd_wind_tower_expansion.html?.v=1

If you're long energy, you should be long wind (not long-winded mind you). If you're long wind, you should be long OTTR.

Small, sound basic electric utility.
Has a long record of annual dividend growth.
Diversified non-regulated business subsidiaries provide additional income.
A solid, if not spectactular, long-term investment.

If Otter Tail were only a utility, it would be boring -- not necessarily bad, but boring. However, it holds a number of businesses, making it a strange holding company PLUS utility. It's profitable, sports a juicy dividend, and is small enough to have ample room for expansion. Average volume is under 200,000, so it will get kicked hard by the news -- good or bad. All in all, a lovely little stock.

Wind energy company, Bill Gates is a 10% shareholder. He gets advice from Buffet, I'm sure. Why not join them on this pick?

Current price is $30.
Oversold.
A few days ago was almost $40.
Mr Market is crazy again.

The steady growth in this stock reflects the management principle objective: growth and return. Compare the stats with your bond or cd returns.

When is a utility not a utility? When it is MORE than a utility.If you could only put one stock in your portfolio, for ever and ever. this is problably one of the best choices you can make.

What can I say...if Jimmy C says BOOYAH on this one, who am I to argue